ACC Limited - Integrated Annual Report 2025-26

Net-Zero Commitment

SBTi Validation for Net Zero

ACC has emerged as a leader in India’s cement sector by securing validation of both its Near-term 2030 and long-term Net Zero 2050 targets from the Science Based Targets initiative. Its 2030 targets have been validated under the Cement Sectoral Decarbonisation Approach. These commitments comprehensively cover Scope 1, Scope 2 and Scope 3 emissions. The emission reduction targets are aligned with the Paris Agreement of limiting temperature rise to 1.5°C.

Near-term Targets (2030)

ACC commits to reducing gross Scope 1 and 2 GHG emissions by 18.6%* per tonne of cementitious product by 2030 from the 2023-24 base year.

Net Zero Targets (2050)

ACC has committed to reduce gross Scope 1 and 2 emissions intensity by 94% per tonne of cementitious product by 2050 from the 2023-24 base year, alongside a 90% reduction in other absolute Scope 1 and 2 emissions. In addition, the Company targets a 97% reduction in Scope 3 emissions intensity per tonne of purchased clinker and cement and a 90% reduction in absolute Scope 3 emissions within the same timeframe.

ACC’s validated targets can be viewed on the SBTi Target Dashboard.
*Within this target, ACC commits to reduce gross Scope 1 GHG emissions 16.4% per tonne of cementitious product and Scope 2 GHG emissions 53.2% per tonne of cementitious product within the same timeframe.

Emissions Reduction Targets

GHG Emissions	Base Year	Target 2030	Target 2050
Scope 1	504 kg/tonne of Cementitious Material	16.4% reduction in emission intensity from base year	—
Scope 2	21 kg/tonne of Cementitious Material	53.2% reduction in emission intensity from base year	—
Scope 1+2	525 kg/tonne of Cementitious Material	18.6% reduction in emission intensity from base year	93.7% reduction in emission intensity from base year
Scope 3	154 kg/tonne of Cementitious Material	Not applicable as share of Scope 3 is less than 40%	97% reduction in emission intensity from base year

Sustainability and Climate Strategy

ACC’s sustainability and climate initiatives are aligned with national and international frameworks, including India’s Nationally Determined Contributions under the Paris Agreement and the UN Sustainable Development Goals, and focus on reducing carbon emissions, building resilience and achieving Net Zero. In line with this approach, ACC has conducted climate risk assessments across all plants in accordance with TCFD and IFRS S2 guidelines. The assessments identified both physical and transition risks, enabling the development of targeted mitigation strategies to address climate impacts and strengthen business resilience. They have also highlighted opportunities that are being integrated into business operations, such as increased use of renewable energy and the deployment of Waste Heat Recovery Systems (WHRS).

Strong Governance for Sustainability Oversight

Corporate Responsibility Committee: Oversees sustainability agenda and climate change mitigation.
Independent Directors: Provide guidance on long-term targets.
Senior Management: Leads execution of sustainability initiatives, aligning with business goals.
Regular Monitoring: Ensures continuous improvement and accountability by management and the Board.

Sustainability and Climate Governance

The Company’s climate governance framework is structured across three distinct levels to ensure robust oversight and effective execution. At the apex is the Corporate Responsibility Committee (CRC), comprising Independent Directors, which provides strategic direction on sustainability and climate priorities and reviews key performance indicators (KPIs) on a quarterly basis.

The second tier comprises senior management (MANCOM), led by the CEO and CFO, who are responsible for embedding climate ISO 14001 Certification for 100% Plants and sustainability considerations into the broader business strategy, capital allocation and operational planning processes.

At the operational level, the ESG function, led by the Chief Sustainability Officer, drives implementation of the ESG roadmap, prioritises material issues, tracks KPI performance across business units and ensures alignment with evolving global and national frameworks, as well as stakeholder expectations.

Additionally, the Risk Management Committee (RMC) provides oversight of sustainability and ESG-related risks, with climate risk fully integrated into the Company’s enterprise risk management framework.

Environmental Policy and Management System

ACC’s comprehensive Environmental Management System ensures that its policies, procedures and practices are aligned with industry best standards, facilitating climate risks mitigation, waste reduction and recycling initiatives. The Company supports the integration of climate action with national and global policies, reflecting its commitment to wider environmental objectives and sustainable practices. Moreover, the Corporate Responsibility Committee (CRC), comprising Independent Directors, oversees policy implementation and reports directly to the Board.

Environmental Policies

Climate Change Policy Energy Management Policy ESG Policy Corporate Environment Policy Water Stewardship Policy Waste Management Policy Resource Conservation Policy Biodiversity Policy

Performance Highlights for FY 2025-26

Net Zero Commitment

By 2050 with Targets Validated by SBTi

8x

Plastic-negative

4.54 million

Trees Planted till FY 2025-26

29.8%

Renewable and Green Power Used

509 kg/tonne

Of Cementitious Material Gross Scope 1 Emission

19.3 kg/tonne

Of Cementitious Material Scope 2 Emission

11.57 MMT

Waste-derived Resources

1.7x

Water Positive

Climate-related Risks and Opportunities

ACC recognises a broad spectrum of climate-related risks, encompassing both physical and transition risks. These include evolving regulations, technology and market risks, and physical risks such as extreme weather events that might disrupt production and supply chains. To enhance business continuity and long-term resilience, the Company has conducted a comprehensive Climate Change Risk Assessment across short-, medium- and longterm horizons and integrated identified risks into its Enterprise Risk Management (ERM) framework. While these risks are material, they also present opportunities to drive innovation, deepen sustainability leadership and strengthen competitive advantage.

Climate-related Risks and Mitigation

Physical Risks

AAC conducted a climate risk assessment across all its sites, evaluating physical risks such as flooding, droughts, cyclones, wildfires and temperature extremes under IPCC Shared Socioeconomic Pathway scenarios SSP1-2.6, SSP2- 4.5 and SSP5-8.5. These scenarios represent varying trajectories of greenhouse gas emissions and their associated climate outcomes, helping the Company understand potential risks under different future conditions. This assessment spans across all the operational sites and evaluates potential climate impacts across three distinct time horizons:

Short-term
(0-3 years)

Medium-term
(3-10 years)

Long-term
(10-30 years)

The assessment provided actionable insights into potential impacts under different warming pathways, enabling the Company to design and implement targeted mitigation and resilience measures.

Acute Physical Risks

The study considered following risks under acute physical risks:

Fluvial flooding
Coastal flooding
Pluvial flooding
Cyclone
Drought
Wildfire

The analysis indicates that ACC's sites do not face any risk due to coastal flooding, wildfire, and drought.

Chronic Risks

In chronic physical risks, main risks considered are:

Temperature extremes
Water stress

Physical Risks Mitigation

Risk Subcategory	Risk Horizon	Risk Description	Risk Mitigation
Flooding (Pluvial, Fluvial, Coastal)	Short-term	Excessive rainfall can trigger flooding, disrupting operations and damaging assets.	Implement flood-response planning, improve drainage and waterproofing, deploy real-time monitoring, strengthen structures and power systems, and ensure insurance and supply-chain continuity.
Cyclone	Short-term	Increased cyclone frequency and intensity can damage infrastructure, disrupt operations, and cause major safety risks.	Integrate cyclone forecasting and alerts, reinforce structures and electrical systems, enable remote shutdowns, secure equipment, and maintain emergency drills and insurance coverage.
Temperature Extremes	Long-term	Higher temperatures can reduce productivity, increase equipment stress, and create worker health and safety risks.	Improve heat resilience through insulation and ventilation, shift work schedules, deploy cooling and hydration measures, use heat-resistant materials, and update emergency preparedness.
Water Stress	Long-term	Increased water demand along with depleting water supply leads to water scarcity or water stress. Water stress can impact operations and result in potential financial losses.	Investing in water conservation measures, recycling water, working with local communities to manage water resources, harvesting water in previously mined-out pits, regular water audits, training, low water curing solutions, cool walls products.

Transition Risks

Transition risks relate to the shift towards a low-carbon business model, including changes in regulation, technology and market expectations linked to climate mitigation and adaptation requirements. ACC evaluates these risks through scenario analysis using the following pathways:

IEA Net-Zero Emissions by 2050 (NZE 2050): A low-carbon future shaped by strong policy action and rapid technology progress, with warming limited to 2°C or below.

IEA Beyond 2°C Scenario (B2DS): A more ambitious pathway aligned with 'well below 2°C', supported by accelerated innovation and tighter climate regulations.

IEA Stated Policies Scenario (STEPS): A pathway based on current policies and announced commitments, reflecting slower emissions reduction progress and warming above 2°C.

Transitional Risks Mitigation

Risk Subcategory	Risk Horizon	Risk Description	Risk Mitigation
Policy and Legal	Medium-term	Impact due to policy mandates aimed at emission reduction (PAT/ CCTS scheme, renewable purchase Obligation)	Strengthen compliance through audits, governance, and real-time tracking with contingency planning for shortfalls.
Technology	Long-term	Unsuccessful investment in new technologies	Use rigorous feasibility and TRL-based evaluation, diversify technology bets, and define clear exit strategies.
Market	Medium-term	Increased cost of raw materials and fuel due to climate change	Optimise fuel mix, improve energy efficiency, strengthen supply chain planning, and use AI/ML for predictive sourcing and pricing.
Technology	Long-term	Write-offs and early retirement of existing assets	Transition in phases while repurposing/retrofitting assets to maximise value and minimise write-offs.

Climate-related Opportunities

Climate change is increasingly being recognised not only as a source of risk but also as a powerful driver of innovation and strategic growth. Organisations that proactively adapt can unlock significant new revenue streams and improve their long-term operational resilience.

Opportunity Category	Opportunity	Description
Energy Source	Use of lower-emission sources of energy	As a part of its commitment towards achieving Net Zero emissions, the company will continue to expand its portfolio of renewable and green energy sources. This will help reduce the cost of energy use and reduce carbon emissions.
Resource efficiency	Use of Alternate Fuel	Increased co-processing of wastes and enhanced thermal substitution rate, leading to savings and decreased use of fossil fuels.
Resource efficiency	Reduced water usage and consumption	Opportunity to reduce water consumption and increase recycling and reuse and be water positive.
Products and services	Development and/or expansion of low-carbon products	Opportunity for low-carbon blended cements portfolio and explore more innovative and sustainable products, and it is anticipated that revenue from these eco-friendly products will increase even further.
Competitive Differentiation	Large share of blended cement in product portfolio	Demonstrating a strong commitment to sustainability enhances brand reputation, attracting eco-conscious customers and top talent.

Internal Carbon Pricing

ACC has implemented an Internal Carbon Pricing (ICP) framework to integrate carbon accountability into decision-making. With an internal carbon price of $ 28 per tonne of CO₂, the Company evaluates financial implications of emissions across operations and uses the insights to steer investments towards low-carbon alternatives and decarbonisation goals, emissions reduction progress and warming above 2°C.

$28/tonne

Internal Carbon Price

Objectives of Implementing Internal Carbon Pricing

Emissions Reduction
Employee Engagement
Carbon Planning
Investment Decisions
Supplier Selection
Operational Efficiency
Regulatory Compliance

Global Partnerships Driving CCU Innovation

ACC’s parent company, Ambuja Cements Limited, has secured an Indo-Swedish grant to undertake a pre-pilot technology feasibility study for Carbon Capture and Utilisation in collaboration with the Indian Institute of Technology Bombay and Eco Tech, Sweden. Supported by the Department of Science and Technology, Government of India, and the Swedish Energy Agency, the initiative reflects strong cross-border collaboration to co-develop scalable, sustainable and industry-ready CO₂ capture and utilisation solutions.

The study will assess the technical and economic feasibility of capturing CO₂ emissions from cement operations and converting them into value-added products such as calcium carbonate or green methanol through green hydrogen pathways. By shifting from conventional carbon capture and storage towards a circular carbon economy, the project aims to reduce emissions while enabling the production of green fuels and materials. CCU represents a critical step in advancing the Company’s Net Zero ambition and reinforces the Company’s commitment to responsible innovation and global partnerships.

Energy Management

ACC drives continuous improvement in energy performance through regular energy audits that identify optimisation opportunities and track progress against defined targets. With operations certified to ISO 50001, the Company reinforces energy management through structured governance, rigorous performance monitoring and focused capability development. Dedicated training programmes, including an in-house Energy and Emissions course hosted on the E-Vidyalaya platform, promote awareness and accountability across teams.

Energy Consumption

Given the energy-intensive nature of cement manufacturing, ACC closely monitors energy performance across all plants, with key metrics reviewed in monthly management forums. The Company is committed to reducing both thermal and electrical energy intensity through process optimisation, cost-efficiency initiatives, higher integration of renewable energy sources such as solar and wind, and effective utilisation of waste heat recovery systems.

Through sustained innovation and targeted investments, ACC remains aligned with its 2030 energy reduction objectives while enhancing cost competitiveness and reducing environmental impact.

58.7%

Clinker Factor

736 kCal/kg of clinker

Specific Thermal Energy Consumption

29.8%

Renewable Power Consumed from Renewable and Green Sources

76 kWh/tonne of cement

Specific Electrical Energy Consumption

4.5 lakh tonnes

of Alternate fuels Used

7.6%

TSR

GHG Emissions Accounting

The cement sector is among the largest industrial contributors to global greenhouse gas emissions, accounting for approximately 7-8% of total global CO₂ emissions. This is primarily driven by the energy-intensive nature of cement manufacturing and the process emissions arising from calcination during clinker production.

	Total Emissions	Emission Intensity
Scope 1	14.73 million tonnes	509 kg/tonne of cementitious material
Scope 2	0.55 million tonnes	19.3 kg/tonne of cementitious material
Scope 3	04 million tonnes	139 kg/tonne of cementitious material

Emission Reduction Initiatives

ACC’s decarbonisation roadmap addresses Scope 1, Scope 2 and Scope 3 emissions through a structured strategy anchored in innovation, operational excellence and future-ready technologies. In FY 2025–26, the Company further strengthened key levers to lower emissions intensity and accelerate progress towards its Net Zero ambition.

Renewable and Green Power

ACC is undertaking significant investments in renewable energy to reduce carbon emissions and lower reliance on fossil fuel-based power. Adani Cement aims to increase the share of green power in its energy mix to 60% by 2028. Its renewable energy roadmap includes the development of 1 GW of solar and wind capacity, along with 376 MW of Waste Heat Recovery Systems by FY 2027-28. The share of renewable and green power in the overall energy mix continues to increase steadily year on year.

*The Company has changed its financial year ending from December to March 31. FY 2022-23 was for 15 months (January 01, 2022 - March 31, 2023). Therefore, the data for FY 2023-24, FY 204-25 and FY 2025-26 is not comparable with the figures for the previous 15 months year ended March 31, 2023.

Improving Energy Efficiency

ACC continues to focus on reducing both thermal and electrical energy intensity per tonne of product through structured efficiency initiatives. Several of its plants participate in India's Perform, Achieve and Trade (PAT) scheme, which has contributed to a steady decline in specific thermal energy consumption. Under the PAT scheme, designated high-energy consumers submit annual energy performance data, undergo mandatory audits and operate against defined consumption benchmarks. Verified energy savings are issued as Energy Saving Certificates, which can be traded, creating both environmental and economic incentives for efficiency.

In addition, ACC has implemented a range of targeted technical and operational interventions across plants to enhance thermal and electrical efficiency, supporting lower carbon emissions and advancing more sustainable manufacturing practices.

Co-processing of Waste

Cement manufacturing is inherently energy intensive, with fossil fuel combustion representing a significant share of sectoral carbon emissions. ACC addresses this challenge through advanced co-processing technologies that enable the safe and efficient use of alternative fuels. Its facilities across India are equipped with dedicated storage infrastructure, specialised feeding systems and laboratory support. Pre-processing units convert diverse waste streams from agricultural, municipal and industrial sources into a homogenised fuel mix, allowing consistent and effective kiln feeding while reducing reliance on conventional fossil fuels.

Through structured initiatives, including those undertaken via Geoclean, ACC integrates alternative fuels into its energy mix in alignment with its broader sustainability and decarbonisation objectives. This approach diverts waste from landfills, minimises environmental impact, strengthens circular economy practices, lowers the carbon footprint and enhances long-term fuel flexibility.

Thermal Substitution Rate (Co-processing Rate)

The Thermal Substitution Rate (TSR) represents the share of total thermal energy demand met through alternative fuels in place of conventional fossil fuels. These alternative fuels, including biomass, municipal waste and select industrial residues, offer high calorific value and can effectively substitute fuels such as coal and pet coke. A higher TSR reduces direct carbon emissions, enhances fuel diversification and advances circular economy principles. ACC has set a target to achieve a 28% TSR by 2030, reinforcing its commitment to sustainable and lower-carbon manufacturing practices.

Optimising Clinker Factor

Clinker represents the most carbonintensive component in cement manufacturing. ACC is therefore focused on producing blended cements with lower clinker content through the increased integration of supplementary cementitious materials such as fly ash and slag. Through continuous innovation in raw mix design and enhanced utilisation of these materials, the Company has achieved a clinker factor below the industry average, significantly reducing CO₂ emissions per tonne of cement. Ongoing investments in research and development aim to further optimise the clinker factor while preserving product strength, durability and performance reliability.

Use of Supplementary Cementitious Material

Supplementary Cementitious Materials play a central role in ACC's sustainable manufacturing approach. The Company incorporates materials such as fly ash, slag, calcined clay and waste gypsum in cement production, enabling partial substitution of virgin raw materials in blended products such as PPC and PSC. These materials are carefully selected and proportioned based on their chemical and physical characteristics and required performance parameters. Through advanced testing protocols and precision blending technologies, ACC ensures that SCMs deliver high reactivity, optimal fineness and consistent quality without harmful contaminants.

The increased use of SCMs not only supports the Company's decarbonisation strategy by lowering clinker intensity and associated emissions but also strengthens circular economy practices by repurposing industrial by-products that would otherwise be landfilled.

10 million tonnes SCM used in FY 2025-26

Increasing Share of Blended Cement

The Company has a strategic focus to increase share of blended cement in its portfolio. This will reduce clinker factor and will promote use of supplementary cementitious material leading to reduction in CO₂ emissions.

84% Blended Cement Sold

*The Company has changed its financial year ending from December to March 31. FY 2022-23 was for 15 months (January 01, 2022 - March 31, 2023). Therefore, the data for FY 2023-24, FY 204-25 and FY 2025-26 is not comparable with the figures for the previous 15 months year ended March 31, 2023.

Use of Technology

ACC is proactively adopting cutting-edge technologies to accelerate its decarbonisation journey and strengthen operational intelligence across its manufacturing processes:

Energy-Efficient Manufacturing Solutions

The Company is implementing state-of-the-art energy optimisation technologies across new projects and plant upgrades, enhancing efficiency and reducing energy intensity.

AI-Powered Process Optimisation

Through advanced machine learning applications, ACC refines process parameters, lowers energy consumption and ensures consistent product quality.

Smart Sensors and Real-Time Monitoring

Deployment of intelligent sensor networks enables accurate emissions monitoring and swift corrective action, supporting regulatory compliance and operational performance.

Digital Tools for Operational Excellence

Leveraging advanced digital platforms, the Company streamlines workflows and fosters a culture of continuous improvement across facilities.

Computational Fluid Dynamics (CFD)

Through CFD simulations and targeted internal process enhancements, ACC has improved its Productivity Rate Index, optimised thermal profiles and reduced energy consumption.

These technological interventions enhance predictive maintenance, strengthen process stability and deliver sustained efficiency improvements across production lines, reinforcing ACC’s commitment to intelligent and sustainable manufacturing.

Zero-carbon Heating Technology

Adani Cement has partnered with Coolbrook for the world’s first commercial deployment of the RotoDynamic Heater™ technology to accelerate cement decarbonisation. This marks the first industrial-scale implementation of Coolbrook’s RDH™ system at one of the Company’s plants, supporting ACC’s Net Zero 2050 ambition validated by the Science Based Targets initiative. The technology is designed to decarbonise the calcination phase, the most fossil fuel-intensive stage of cement manufacturing, by delivering clean, electrified heat. It also enhances the drying and calorific value of alternative fuels, enabling significantly higher substitution of fossil fuels with sustainable energy sources.

The RDH™ system will be powered entirely by renewable energy, ensuring that the industrial heat generated is emission-free. This deployment demonstrates the practical viability of electrified, renewable-powered industrial heat at scale and strengthens Adani Cement’s leadership in clean manufacturing. By integrating advanced electrification solutions into its production processes, the Company is accelerating its transition away from fossil fuels, reducing emissions, maximising renewable energy utilisation and setting new benchmarks in lowcarbon cement manufacturing.

Carbon Capture and Utilisation

ACC’s parent company, Ambuja Cements Limited, becomes the first cement company to receive an Indo-Swedish grant for a pre-pilot Technology Feasibility study for Carbon Capture and Utilisation (CCU) in collaboration with the Indian Institute of Technology Bombay and Eco Tech, Sweden. The project emphasises collaboration between Swedish and Indian partners to co-develop scalable, sustainable, and industryready CO₂ capture and utilisation solutions. The Company plans to utilise captured CO₂, marking a transformative shift from conventional carbon storage to a circular carbon economy that reduces emissions and enables new green fuels and materials.

Air Quality

ACC is committed to managing air emissions proactively by adhering to regulatory norms and minimising ecological impact. A wide range of advanced air pollution control systems are implemented across plants, and these include:

Electrostatic Precipitators (ESP) and bag filters effectively capture particulate matter.

Enclosed conveyor systems help minimise dust release during material movement.

Dust suppression techniques, such as water spraying on haul roads and stockpiles, reduce airborne particles.

Covered transport of raw materials and finished products prevents fugitive dust emissions.

Green belt development around plant perimeters acts as a natural barrier to dust and noise pollution.

All of the Company’s plants are equipped with Continuous Emission Monitoring Systems (CEMS) that provide real-time data on key pollutants:

Nitrogen Oxides (NOx)
Sulphur Oxides (SOx)
Particulate Matter (PM)
Other significant air pollutants

Parameter	UoM	FY 2025-26	FY 2024-25	FY 2023-24	FY 2022-23*
Particulate Emissions (Dust Emissions)
Absolute Emission	MT	259	264	268	450
Emission Intensity	Kg/USD of Turnover	0.00009	0.00010	0.00011	—
NOx
Absolute Emission	MT	7,996	8,003	9,721	18,097
Emission Intensity	Kg/USD of Turnover	0.00293	0.00399	0.00301	—
SOx
Absolute Emission	MT	457	461	469	1,939
Emission Intensity	Kg/USD of Turnover	0.00017	0.00017	0.00019	—
Direct Mercury Emissions
Absolute Emission	MT	0	0	0	0

*The Company has changed its financial year ending from December to March 31. FY 2022-23 was for 15 months (January 01, 2022 – March 31, 2023). Therefore, the data for FY 2023-24, FY 2024-25 and FY 2025-26 is not comparable with the figures for the previous 15 months year ended March 31, 2023.

Water Stewardship

Guided by a robust Water Stewardship Policy, ACC has been a frontrunner in sustainable water management, maintaining its Water Positive status for over a decade. The Company prioritises the protection and conservation of water resources through systematic monitoring of key parameters such as withdrawal, consumption, recycling, and discharge. The Company consistently goes beyond regulatory compliance, establishing industry benchmarks in water conservation, operational efficiency, and community impact. Through extensive rainwater harvesting, watershed development, and advanced recycling initiatives, ACC continues to minimise its freshwater footprint while enhancing local water availability.

Reduce Dependency on Freshwater

Seek to minimise reliance on freshwater resources for operations

Ensure Water Security

Ensure water security for communities residing beyond their immediate boundaries

Become Water Positive

Aim to continue being water-positive through sustainable water management practices

Water Withdrawal and Consumption

ACC relies on diverse water sources while prioritising minimal impact on shared resources. By continuously assessing and optimising water withdrawal processes, the Company ensures efficient, sustainable and responsible water management.

Parameter	UOM	FY 2025-26
Water Withdrawal by Source in Production (in kilolitres)
(i) Surface Water	KL	1,875,798
(ii) Groundwater	KL	321,508
(iii) Third-party Water	KL	67,670
(iv) Seawater/desalinated Water	KL	0
(v) Others (Rain Water Harvested)	KL	1,876,576
Total Volume of Water Withdrawal for Production (i+ii+iii + iv + v)	KL	4,141,552
Total Volume of Water Consumption for Production	KL	4,141,552

4.1 million KL

Water Consumption

143 KL/tonne

of Cementitious Material Water Intensity

57%

Share of Harvested Rainwater in Gross Consumption

Responsible Water Stewardship in Water-Stressed Regions

Three of ACC’s manufacturing units operate in areas classified as water-stressed by the Central Ground Water Authority (CGWA), making responsible water management a critical priority. These plants consume 3.9% of the organisation’s total water consumption. Despite these geographic constraints, the Company consistently complies with all regulatory requirements while proactively reducing reliance on freshwater sources. Through extensive rainwater harvesting, coupled with strong recycling and reuse practices, ACC sustains operations responsibly and contributes to the protection and long-term resilience of local water ecosystems.

0.16 million m³ Water Consumption in Water-stressed Areas

Effluent Management

The waste water generated is treated at the plant and recycled for mainly dust suppression and watering of green areas. ACC has implemented robust wastewater recycling and reuse practices across its operations to improve water efficiency, reduce reliance on freshwater and minimise its overall water footprint. Recycled water is effectively used for dust suppression and gardening.

0.59 million KL Recycled Water Used

Wastewater Discharge

ACC recycles and treats wastewater generated at its plants for purposes such as gardening and dust suppression. This approach ensures that no wastewater is discharged outside the Company’s premises.

Zero Liquid Discharge

Across all Plants

Green Font

ACC implements rainwater harvesting and conservation initiatives both within and beyond its sites, including using closed mine pits, reviving rural ponds, constructing check dams and roof water harvesting. Collaborations with government bodies, developers and community projects, alongside modular zero-water curing solutions, help ensure water security for its operations and surrounding communities.

1.7x Water Positive

Waste Management and Circular Economy

ACC remains committed to responsible resource use, minimising waste generation and advancing circular economy principles across its operations. The Company goes beyond regulatory compliance to ensure safe, transparent and accountable waste management practices. Waste minimisation, reuse and recycling form a central pillar of its sustainability strategy, with a strong emphasis on increasing the utilisation of waste-derived resources to reduce dependence on virgin materials and eliminate environmentally harmful disposal. Regular waste audits are conducted to identify improvement opportunities and drive targeted reduction initiatives. Through sustained investments and clearly defined targets, the Company maintains zero hazardous waste to landfill while strengthening employee awareness through structured training programmes that reinforce environmental stewardship.

Waste Generation

ACC follows a structured waste management framework across its value chain. Key waste streams include plastic waste, e-waste, biomedical waste, construction and demolition waste, battery waste, hazardous waste and non-hazardous waste. Effective segregation at source ensures proper classification and storage in designated areas, enabling compliant handling and optimal recycling or co-processing pathways.

0.39 million tonnes Total Waste Generated

Waste Management

The Company prioritises recycling and co-processing to minimise environmental impact and prevent landfill disposal. Plastic waste is largely co-processed in cement kilns, with limited quantities routed through authorised scrap dealers. Biomedical waste is disposed of through authorised incineration facilities, while e-waste is channelled to certified recyclers. Hazardous waste such as used oil and discarded containers is reused at plant level or co-processed, with non-processable quantities sent to authorised treatment facilities. Scrap materials are sold to approved vendors, and mining overburden is repurposed for backfilling within mines, supporting responsible land restoration.

Waste Disposal

E-waste, biomedical waste and scrap are disposed of through authorised, regulator-approved recyclers. Plastic waste and used oil are co-processed in cement kilns across multiple plants, eliminating landfill dependency. Industrial by-products such as fly ash are recycled into blended cement production, reinforcing circularity and resource efficiency.

Zero

Hazardous Waste Sent to Landfill

Circular Economy

ACC continues to strengthen circularity by enhancing the use of waste-derived resources and substituting low-carbon materials in production. Strengthening circularity further, ACC utilised 11.57 million tonnes of waste-derived resources during the year, including 0.45 million tonnes of alternative fuels and 11.12 million tonnes of waste-derived raw materials such as fly ash, gypsum and slag. This integrated approach conserves natural resources, supports blended cement production and advances long-term sustainability and decarbonisation goals.

11.57 million tonnes of Waste-derived Resources Utilised

Closing the Loop on Waste through Geoclean

ACC extends sustainable and compliant solutions through Adani Cement’s waste management arm Geoclean. Geoclean has partnered with a leading FMCG company to pioneer a responsible solution for managing market return waste—products that do not reach consumers and require secure end-of-life treatment. Through this partnership, trade rejects such as juices and honey are prevented from entering grey markets or being sent to landfill, thereby safeguarding consumer safety and preserving brand integrity. Market returns are securely managed through a controlled system and coprocessed at authorised Geoclean facilities, ensuring 100% brand protection and responsible disposal. Delivered at scale, the initiative has successfully diverted over 15,000 tonnes of market returns, achieved 100% landfill-free operations, and demonstrated how business can drive circularity while reducing environmental contamination and landfill pressure.

Biodiversity Management

Biodiversity management is a key priority in ACC’s materiality assessment, recognising the role of healthy ecosystems in mitigating natural disasters and supporting essential ecological services. The Company’s Biodiversity Policy guides the identification and management of biodiversity-related risks across all project sites. It follows a structured mitigation hierarchy of avoid, minimise, restore and offset, with regular monitoring of progress. The Policy applies across operations, suppliers and value chain partners. ACC aims to achieve No Net Deforestation through time-bound afforestation programmes and No Net Loss of Biodiversity across all sites, including those near critical habitats. The long-term objective is to deliver a Net Positive Gain in biodiversity for future generations.

ACC has undertaken a detailed Nature Risk and Biodiversity Risk Assessment using the TNFD LEAP approach within a 10 km radius of its plants and mines. This assessment identifies dependencies on ecosystem services, such as water and climate regulation, as well as the Company’s impacts on natural capital. Nature-related risks include physical risks from climatic and geological events and transition risks arising from regulatory and policy changes. While ACC depends on natural resources such as minerals and water, it remains committed to mitigating impacts from mining activities through responsible resource management and sustainable practices.

Adani Cement Becomes the First Indian Cement Company to Adopt TNFD

In a landmark step towards nature-positive growth, Adani Cement, comprising Ambuja Cements Limited and its subsidiaries along with ACC became the first company in the Indian cement industry to adopt the Taskforce on Nature-related Financial Disclosures (TNFD) recommendations, joining a select group of global leaders in sustainable manufacturing and responsible construction. This milestone underscores the Company’s commitment to systematically identify, assess, manage and disclose Nature-related risks and opportunities, with TNFD-aligned formal disclosures scheduled to commence from FY 2025–26. Building on existing nature risk assessment and disclosure practices aligned with globally recognised frameworks, the adoption further strengthens Adani Cement’s ESG strategy in support of India’s climate and nature ambitions. Anchored by strong on-ground action, the Company has planted over 4.54 million trees, achieved 1.7x water positivity and implemented biodiversity conservation initiatives across its operations. With major products of its portfolio comprising blended green cement, alongside targets of 28% AFR usage and a 60% green power share by FY 2027–28, Adani Cement is embedding responsible resource management into core business decisions, setting a new benchmark for transparency, accountability and environmental stewardship in India’s cement sector.

Cleaner Air, Greener Future Campaign

To strengthen environmental stewardship and encourage collective action, Ambuja Cements and ACC launched the Cleaner Air, Greener Future Green & Clean campaign, reinforcing the belief that building a stronger future extends beyond cement to sustainability. The initiative centred on two key themes— plantation and clean air— mobilising employees and stakeholders to participate in tree plantation activities at plants, offices and within local communities, while promoting everyday actions that contribute to cleaner surroundings.

Participants were encouraged to share photographs, ideas and green initiatives, as well as creative suggestions and taglines, to inspire broader engagement. By providing an open platform for participation and dialogue, the campaign sought to drive long-term behavioural change, deepen community involvement and foster a collective commitment to a healthier and greener future.

Biodiversity Risk Assessment

As a cement manufacturer, ACC has a direct and material dependence on natural capital, particularly through raw material extraction and water use, while also relying indirectly on ecosystem services that regulate climate, water cycles and protection from natural hazards. Recognising that mining and land-use changes can impact biodiversity and ecosystem resilience, the Company conducted a comprehensive Nature Risk Assessment, including a detailed Biodiversity Risk Assessment, to better understand its dependencies, impacts and associated risks

The assessment was undertaken for all sites of the company and the study area was a 10 km radius around the site and was carried out using the Taskforce on Nature-related Financial Disclosures LEAP framework, a globally recognised methodology that enabled the Company to map its interactions with nature, evaluate dependencies and impacts, and identify Nature-related risks and opportunities. These risks span physical, transition and systemic dimensions, including exposure to extreme weather events, ecosystem degradation, evolving regulatory landscapes and broader ecological shifts.

Assessment Framework

Step 1

Location-specific

21 sites were mapped across India to identify nature interfaces within a 10 km radius

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Step 2

Evaluate

Assessed ecosystem dependencies and impacts, including water, climate, land use and emissions

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Step 3

Assess

Physical, transition and systemic nature-related risks were evaluated across operations

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Step 4

Prepare

Implemented site-specific action plans and reporting to enhance biodiversity outcomes

Leading the Industry in Nature-related Disclosures

Adani Cement, comprising Ambuja Cements and its subsidiaries along with ACC, and part of the diversified Adani portfolio, has taken a leadership position in sustainability by adopting the recommendations of the Taskforce on Nature-related Financial Disclosures (TNFD), becoming among the first in the Indian cement sector to align with this global framework. As the world’s ninth-largest building materials solutions provider, Adani Cement joins a select group of global businesses advancing nature-positive business transformation. Through this commitment, the Company will systematically identify, assess, manage and transparently disclose nature-related risks and opportunities, strengthening governance and accountability in sustainable manufacturing.

This milestone complements the Company’s broader decarbonisation initiatives, including the commercial deployment of advanced clean heating technologies, reinforcing its integrated approach to climate action and nature stewardship while advancing its long-term sustainability ambitions.

Biodiversity Action Plan

In response to identified nature-related risks, ACC has developed a comprehensive Biodiversity Action Plan aligned with the International Union for Conservation of Nature (IUCN) Mitigation Hierarchy and anchored in nature-based solutions. The Plan outlines site-specific interventions including greenbelt development, wildlife monitoring, rainwater harvesting structures and mangrove restoration initiatives. Through these targeted actions, ACC aims to effectively manage biodiversity impacts while enhancing ecosystem resilience and advancing long-term ecological sustainability.

Biodiversity Mitigation Hierarchy

Avoid	Reduce	Regenerate and Restore	Transform
Prevent biodiversity impacts at the planning and design stage. Example: Greenbelt management using native species and avoiding monoculture, as per CPCB guidelines.	Minimise unavoidable impacts through improved practices and controls. Example: Lighting management by re-orienting lights to reduce disturbance to nocturnal wildlife.	Rehabilitate affected ecosystems to restore ecological functions. Example: Rainwater harvesting structures and mangrove restoration to improve water recharge and revive local water bodies.	Drive long-term nature-positive outcomes beyond compliance. Example: Site-wise tree plantation targets and community partnerships to achieve no net deforestation and progress towards net positive.

Biodiversity Protection and Enhancement Measures

ACC adheres strictly to applicable Indian environmental laws and regulations, including the Forest Conservation Act and the Compensatory Afforestation Fund Management and Planning Authority Act, upholding the principle of No Net Deforestation. In line with statutory requirements under the Forest Conservation Act 1980 and the Compensatory Fund Act 2016, the Company undertakes compensatory afforestation for any forest land diverted for operational purposes. Each mining location operates under an approved Mine Closure Plan that includes afforestation, land rehabilitation and ecological restoration measures. ACC also complies with Government of India guidelines on green belt development across its sites. Community Collaboration

Community Collaboration: The Company works closely with local communities to manage restored and afforested areas effectively, while partnering with them on biodiversity initiatives in adjoining and offset areas.
Tree Plantation Commitment: As part of the Adani portfolio, ACC is committed to growing 5 million trees by 2030, of which 4.54 million have already been planted, strengthening landscape-level ecological resilience.
Restoration of Degraded Habitats: Targeted habitat management plans are implemented to regenerate and restore degraded ecosystems across operational sites.
Mining Overburden Management: Mining overburden is stored separately in designated nonmineralised zones as per approved mine plans and utilised for progressive mine rehabilitation. Statutory progressive mine closure plans are in place across all locations.
Daytime Operations near Sensitive Zones: Where operations are located near protected areas, mining and raw material transportation activities are restricted to daylight hours to minimise ecological disturbance.
Capacity and Awareness Building ACC prioritises continuous training for employees engaged with local communities to ensure responsible environmental practices. Regular awareness programmes are conducted for stakeholders to promote biodiversity conservation and responsible site management.

IBBI Membership

ACC is a member of the India Business and Biodiversity Initiative (IBBI), a national platform that brings together businesses and key stakeholders to foster dialogue, knowledge sharing and collaborative learning. The initiative supports the integration of sustainable biodiversity management into business strategies and operations, reinforcing ACC’s commitment to responsible environmental stewardship.

Sustainable Construction

ACC remains a leader in blended cement, offering products with a lower clinker factor and reduced environmental footprint. By utilising supplementary materials such as slag, fly ash and waste gypsum, the Company delivers durable, highperformance cement solutions while lowering emissions intensity.

GRIHA Certification

All of its products are certified under GRIHA (Green Rating for Integrated Habitat Assessment)— India’s national green rating system, reinforcing the Company’s commitment to responsible product innovation and greener building outcomes.

EPD Certification

The Company has EPD (Environment Product Declaration) for its product portfolio including OPC, PPC and RMX. The EPD was developed through a detailed Life Cycle Assessment (LCA) aligned with ISO 14040:2006 and ISO 14044:2006. The assessments is independently verified under:

ISO 14025:2006
EN 15804:2012+A2:2019
Product Category Rules (PCR) EN 16908:2017

The EPD certificates of ACC can be accessed at:

https://www.environdec.com/library/ epd22523 https://www.environdec.com/library/ epd31051 https://www.environdec.com/library/ epd23972 https://www.environdec.com/library/ epd23969 https://www.environdec.com/library/ epd23970 https://www.environdec.com/library/ epd23971

This enables stakeholders to make informed decisions and reinforces our dedication to responsible manufacturing. Complemented by Health Product Declarations, this approach aligns with leading green building frameworks and responsible construction practices.

Sustainable Products

ACC is committed to minimising its carbon footprint while continuously enhancing product performance and delivering on its brand promise. The Company’s solutions are designed to enable customers and construction professionals to reduce environmental impact, improve construction quality and optimise lifecycle costs.

To address evolving customer needs and promote sustainable construction practices, ACC has introduced innovative offerings under ACC Certified Technology such as Instant Concrete Mix Proportion and Modular Curing solutions. During the year, ACC introduced Compocem Cement from its Kudithini plant, further strengthening its sustainable product portfolio. The launch reinforces the Company’s commitment to greener construction solutions, innovation and quality, while expanding its range of valueadded offerings across key markets.

These advancements improve build quality, enhance execution efficiency and support resource optimisation, while aligning with the Company’s broader sustainability objectives. Through these initiatives, ACC continues to enable environmentally responsible and performance-driven construction across markets.

84%

Blended Products Sold

₹15,318 crore

Total Revenues from Sustainable Products

84%

Of Sustainable Revenues

Regulatory Compliance

ACC strictly adheres to a comprehensive environmental regulatory framework, ensuring that all required approvals and permissions are in place. To uphold transparency and accountability, compliance is closely monitored through the Legatrix software. Key environmental regulations governing its operations include:

Environmental Clearances
The Water (Prevention and Control of Pollution) Act, 1974
The Air (Prevention and Control of Pollution) Act, 1981
Noise Pollution (Regulation and Control) Rules, 2000
The Environment (Protection) Act, 1986

Hazardous and Other Wastes (Management & Transboundary Movement) Rules, 2016
Solid Waste Management Rules, 2016
Bio Medical Waste Rules, 2016
Plastic Waste Management Rules, 2016
E-Waste Rules, 2016
The Construction and Demolition Waste Management Rules, 2016

ASCENT: Institutionalising Sustainable and Resilient Growth

The launch of the Adani Cement’s Sustainable, Circular, Environmental and Net-Zero Transformation (ASCENT) framework marks a significant step in strengthening operational excellence and long-term value creation. ASCENT establishes a structured, enterprisewide approach to enhancing environmental performance, reinforcing operational discipline and enabling consistent, datadriven decision-making. By integrating common standards, robust governance systems and digital enablement, the framework improves alignment, transparency and accountability across operations while strengthening risk oversight.

More than a programme, ASCENT represents a sustained transformation that embeds sustainability, circularity and innovation at the core of business strategy and execution. Aligned with India’s vision of Viksit Bharat 2047, it ensures that growth remains responsible, resilient and future-ready, delivering enduring value for stakeholders and the wider economy.

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