Integrated Approach to Sustainable Growth

NATURAL
CAPITAL

Caring for Our Planet: Building
a More Sustainable World

The unchecked rise in global temperatures and the resulting climatic disruptions are impacting people, communities, and the business environment in multiple ways. However, it is heartening to note the growing awareness among individuals, communities, governments and businesses who are coming together in constructive and impactful ways to contain the damage. Urgent affirmative action undertaken at the national and international levels is helping build a more robust and carbon- efficient foundation to secure the future of the planet. Recognising the urgent need of containing the impact of climate change, a rapid transition from fossil fuels to a new era of green, clean and renewable energy is imperative. Reliance understands that the global new energy agenda needs to move from dialogue to action and commitment to urgent implementation
on the ground.

Material Topics

  • Energy Efficiency of Operations
  • Climate Change
  • Managing Environmental Impact
  • Water and Effluent management
  • Waste Management and Circular Economy
  • Ecosystems and Biodiversity

United Nations SDGs

Reliance is taking proactive steps to demonstrate its care for the planet and manage the criticality of climate change. Chairman and Managing Director Shri Mukesh D. Ambani outlined the Company’s mega- investment in the New Green Energy business at its 44th Annual General Meeting (AGM). Having committed to Net Zero by 2035, he detailed an ambitious strategy and roadmap for implementing this vision. Reliance announced an investment of `75,000 crore to build an end-to-end green energy ecosystem.

The Company has re-engineered its traditional energy business completely and is poised to become a global leader in Clean and Green Energy and Materials. Its energy transition strategy focuses on accelerating the adoption of clean energy through a path of 'Just Transition'. It focuses on addressing associated risks and ensuring that the transition is fair, inclusive and creates value for all stakeholders, leaving no one behind. This commitment extends Reliance’s philosophy of 'We Care' to chart the way for the planet to survive and thrive again.

“The world is entering a new energy era, which is going to be highly disruptive. The age of fossil fuels, which powered economic growth globally for nearly three centuries, cannot continue much longer”.

Shri Mukesh D. Ambani

Chairman and Managing Director

Towards a cleaner future

Reliance has started developing the Dhirubhai Ambani Green Energy Giga Complex on 5,000 acres in Jamnagar, Gujarat. It is planned to be among the world’s largest Integrated Renewable Energy manufacturing facilities. Under the plan, the Company aims to build four Giga factories to manufacture and integrate critical components of the New Energy ecosystem with the aim of bridging the green energy divide in India and globally. Reliance aims to invest in Giga factories in Solar, Battery, and Hydrogen value chains.

Highlights FY 2021-22

Committed to invest in Solar and Hydrogen Giga factories,
value chain, partnerships and future technologies

352%

Increase in Renewable Energy
Consumption in RIL

2.11million GJ

Energy savings through conservation
efforts in RIL

1.64%

Reduction in GHG emission in RIL

RJIL received 'A-' in CDP 2021 which is in the Leadership band

This is higher than the Asia regional average of 'B-', and higher than the Media, telecommunications & data centre services sector average of 'B'.

The Company will also invest in enhancing the value chain, partnerships, and future technologies, including upstream and downstream industries. Its multifaceted projects include:

Management approach

Reliance has a robust governance framework to track, assess, and improve how it manages its natural capital consumption. The Company has implemented annual environmental and sustainability action plans that are regularly assessed and revised.

Reliance adopts a comprehensive strategy at the Group level that establishes company-wide HSE objectives and processes for plant operations to promote operational discipline and performance. The Company has developed a well- defined HSE audit programme to verify that management standards are followed across its operations.

The Group Safety and Operational Risk team monitor the quarterly evaluation of business plans. They also regularly perform independent reviews of environmental aspects at the segment and site levels. The asset lifecycle is covered by a comprehensive review system, which includes the phases of implementation, operation, and closure. Reliance continues to strengthen its compliance systems and processes through rigorous internal and external audits.

The Board level CSR and Governance committee has oversight on Foundations and its related disclosures. The Board level monitoring at regular intervals is a testimony to the proactive approach taken by Reliance to ensure responsible and sustainable growth.

Environmental Performance

Managing Environmental Impact

Reducing the environmental footprint across Reliance's businesses is key to its operational performance. The Company's environmental and sustainability stewardship ensures that its manufacturing sites meet consent terms and environmental regulations beyond compliance. Reliance complies with all applicable laws and regulations and periodically audits operations to confirm compliance. The Company ensures that its employees are regularly trained and updated on changing laws and regulations, measures to prevent pollution, minimise waste and other solutions to reduce environmental impact.

The Company adopts comprehensive measures and advanced technology to reduce waste, energy and water usage. It is also focused on reducing and eliminating flaring and venting of feed and product gases, including volatile organic compounds. Reliance tracks, streamlines and manages GHG emissions across its manufacturing units. Retrofitting investments are made across every manufacturing division to reduce the environmental impact and energy consumption. Real-time monitoring of stack emissions through Continuous Emission Monitoring System (CEMS) has enabled Reliance to adhere to local standards for parameters like SOx, NOx and TPM emissions. Initiatives like converting organic waste into bio-manure through vermicomposting, stringent monitoring measures to prevent spills during storage, safe handling and transportation of hydrocarbon materials, have significantly reduced the negative environmental impacts of its operations.

The air emissions recorded for RIL includes:

Parameters Unit FY 2021-22 FY 2020-21 FY 2019-20 FY 2018-19
TPM ‘000 ton 1.81 2.02 1.85 2.29
SOx ‘000 ton 20.74 21.61 22.53 22.61
NOx ‘000 ton 37.85 39.88 42.01 34.43
VOC ‘000 ton 46.66 41.31 46.15 41.88

Energy Efficiency of Operations

Reliance recognises its obligation towards climate change-related risks. As a global player, it is incumbent upon Reliance to overcome the challenges of transitioning to a lower carbon regime. The Company has in place best-in-class technologies and good operations & maintenance (O&M) practices that ensure optimal energy consumption at applicable sites. During FY 2021-22, the energy efficiency improvement initiatives resulted in energy savings of 2.11 million GJ for RIL.

Dedicated Energy Teams pursue relentless monitoring of energy performance at all sites and at the group level. The Company uses in-house mechanisms to monitor different energy usage parameters in real-time. Along with tools to facilitate decision-making, simulation and visualisation of energy efficiency, the monitoring system is also integrated with production control systems that make the Company’s energy management system agile, flexible, and effective. Energy audits and benchmarking studies are also conducted periodically to identify performance gaps.

RIL adopts a strategy to manage energy based on the five tenets of energy management:

Eliminate unnecessary energy use through process and heat integration, quick restoration of equipment performance, consumption optimisation using simulation models, and reduce-recover-reuse programmes.

Improve energy usage efficiency using simulation tools, deploying best practices, and upgrading equipment and technology.

Adjust operations to reduce energy consumption by redesigning the product basket and optimise the use of installed capacity.

Optimise the cost of energy consumed through an enterprise-wide fuel planning and scheduling mechanism.

Reduce carbon intensity by judicious selection of energy sources and ramping up renewable energy use to offset emissions from fossil fuels.

Across manufacturing sites, the Company has taken up energy optimisation and waste heat recovery projects, co-firing biomass with fossil fuel, opportunistic equipment upgrades and flare gas recovery to improve energy efficiency and resource conservation. The O2C manufacturing sites at Barabanki, Dahej, Hazira and Hoshiarpur have utilised 3.09 million GJ of bio-energy. The Company has also achieved a 16% reduction in flaring at E&P and O2C sites compared to FY 2020-21. This year the volume of flared and vented hydrocarbons was
1,32,491 MT.

530.20 million GJ

Total Energy Consumption in RIL

3.12 million GJ

Renewable Energy Consumption in RIL

Reliance Retail has undertaken several measures, including the upgradation of conventional equipment and rooftop insulation of warehouses to improve energy efficiency. The Retail team is encouraging the use of day lights and HVLS fans to reduce the overall energy consumption of warehouses and stores.

The Reliance digital business accounts for one of the lowest carbon intensity per TB of data usage with the right energy systems in place. In the last financial year, Jio had a total energy consumption of 6.69 million MWh out of which 65,283.53 MWh was wheeled from renewable sources.

Reliance Jio Infocomm Limited’s energy efficiency projects and measures are an important part of achieving its carbon reduction goals and Net Zero emissions milestone. As a fast growing telecommunications company in India, it has introduced initiatives and measures to optimise energy consumption at all facilities.

These include:

Climate Change

Reliance has always been cognisant of the impending climate change and the effect it can have on the future. In FY 2021-22, the Company ensured that it will continue its business-wise endeavours so that it is on its track to become a Net Zero organisation. It understands that controlling the increase of global temperatures by 1.50C above pre- industrial levels is no longer a choice but a necessity and Reliance has been extremely proactive in taking exemplary strides to decarbonise its operation. The Reliance O2C business is deploying several energy conservation solutions using next- generation digital technologies. It has integrated Internet of Things (IoT) and Machine Learning (ML) solutions in oil fields, repurposed petcoke gasification to utilise synthesis gas to produce chemicals and hydrogen and generate synthesis gas on a renewable basis through biomass gasification . Reliance Retail has initiated the use of battery-operated equipment for material handling to eliminate fossil fuel consumption. It ensures that idle trucks in waiting areas turn off their ignitions, reducing emissions, noise levels and fuel consumption. The heavy investments have been instrumental in helping Reliance manage its footprint.

RIL's GHG Emissions

Parameters Unit FY 2021-22 FY 2020-21 FY 2019-20 FY 2018-19
Scope 1 CO2e million ton 43.96 44.67 47.50 29.69
Scope 2 CO2e million ton 1.19 1.25 1.45 1.14

Reliance Jio has also been a forerunner when it comes to decarbonising its operation. Reliance Jio Infocomm Limited (RJIL) has received its highest ‘A-’ rating in CDP’s 2021 global rating of companies on the way it manages its environmental impacts. Jio is the only telecom and digital services firm in India to receive a leadership rating on CDP’s Global Environment Impact. The Science Based Targets initiative (SBTi) has validated the corporate greenhouse gas emissions reduction target(s) submitted by RJIL. In FY 2021-22, the Scope 1 emissions were 0.49 million tonnes of CO2 and Scope 2 emissions were 3.36 million tonnes of CO2. Jio also calculates its Scope 3 emissions, which accounted for 4.55 million tonnes of CO2 in FY 2021-22. Jio has also been able to reduce 51,574 tonnes of CO2 emission by procuring power from renewable sources.

Reliance continues to meet its growing energy demands with sources that have minimal environmental impacts. The total renewable energy consumption increased by 352% Y-o-Y. Hazira manufacturing unit contributes significantly to the renewable energy generation, and generated 13,60,181 GJ in FY 2021-22. Reliance also co-fired biomass with coal at its Dahej and Hazira manufacturing units to reduce dependence on natural resources.

Speaking at the International Climate Summit 2021, Reliance Chairman and Managing Director Shri Mukesh D. Ambani expressed his optimism that India can become the first country in the world to produce Green Hydrogen at less than US$ 1 per 1 kg in 1 decade to meet the 1-1-1 target. India has set the goal to reach 450 GW of renewable energy capacity by 2030. Reliance has committed to enable at least 100 GW of solar energy by 2030, leading to creation of a pan-India network of kilowatt and megawatt- scale solar energy producers who can produce Green Hydrogen for local consumption. This endeavour by Reliance is aligned with its vision of making India the first country globally to make hydrogen affordable.

Jio-bp has made strategic engagements to enable the Electric Mobility ecosystem. Jio-bp has tied- up with BluSmart, an all EV ride hailing company operating in Delhi NCR for providing their fleet with state-of-the- art charging facilities.

Jio-bp also operationalised battery swapping service under Vehicle as a Service (VaaS) model with Swiggy, so that their driver partners seamlessly deliver food to customers and reduce carbon footprints.

Jio-bp signed MoU with the Mahindra Group in December 2021 to explore the development of EV products and services, alongside identifying synergies in low-carbon and conventional fuels. A MoU was also signed with Piaggio and moEVing for exploring some of the exciting solutions in electric mobility space.

Ecosystems and Biodiversity

Reliance conducts periodic environmental impact studies for biodiversity and marine ecosystems surrounding its greenfield and brownfield projects to assess the ecological status and mitigate negative impacts, if any, on the neighbouring ecosystem.

The impactful greenbelt development and habitat restoration efforts have borne fruits as more than 2.3 crore saplings have been planted across India, covering more than 2,600 Ha of green belt area till date. In FY 2021-22, 6 lakh + saplings were planted across various sites, and 70 Ha of green belt area was developed.

6 lakh+

(2.3+ crore since inception) Saplings planted across various sites in India during FY 2021-22

Waste Management and Circular Economy

Reliance is a firm believer in the 3Rs of a circular economy – Reduce, Reuse, Recycle. The Company collects, sorts, and recycles plastics to reduce dependency on new and virgin resources to improve circularity in plastics.

The Company strongly focuses on responsible and efficient resource consumption. The waste management initiatives go far beyond regulatory compliances to strengthen the circular economy. Some of the initiatives taken by the Company include:

In FY 2021-22, the volume of waste disposed and recycled across the Company’s operations for RIL and Jio stood at :

Parameters Unit FY 2021-22
RIL
Hazardous waste (disposed)
Hazardous Waste diverted from disposal
Non-Hazardous waste (disposed)
'000 MT
'000 MT
'000 MT
15.70
58.66
797.55
Reliance Jio
Hazardous waste (disposed)
Non-hazardous waste (disposed)
'000 MT
'000 MT
2.01
1.38

Additionally, Reliance Retail is extremely conscious about the waste it may generate and is proactive in managing waste at every stage of its product lifecycle. Re-usable totes and crates are used to a large extent to reduce generation of packaging wastage. Supplier cartons are re-used where possible. Reliance Retail’s vision is to move towards 100% paperless operations at its facilities. Reliance Jewels uses carry bags and envelopes made with recycled paper at its stores.

Towards circularity

To grow responsibly in magnitude and scale while satisfying all stakeholders expectations lie at the core of Reliance’s operation. The Company recognises the need to move to a low-carbon economy. It takes proactive initiatives to accelerate the change and has enhanced its internal governance framework to minimise and mitigate risk. Reliance is working on a multipronged approach covering various aspects of the circular economy through a cradle- to-cradle approach. It has identified short, medium and long term strategies to accelerate the progress of circularity for plastics. In the short term, the focus is on increasing the Company’s PET recycling footprint and usage of Multi-layered Plastics (MLP) for road construction. In the medium term, it is focusing on polyolefin recycling. In the long term, the Company is looking at chemical recycling alternatives such as Waste to Oil (W2O) and Hydrothermal Liquefaction (HTL), among others.

Reliance supports projects that encourage circularity, such as the development of the R|ELANTM fabric, in recognition of the growing consumer preference for environmentally- friendly products. The Company is also developing commercial scale continuous catalytic pyrolysis technology. The process has been successfully demonstrated as a pilot delivering promising results to convert unsegregated mixed waste plastics into Pyrolysis Oil. These products have significant scope in accelerating global circularity.

Reliance Retail’s packaging is based on the core principle of a Sustainable Circular Economy. The 3Rs for Retail business stands for:

Reduce: Reduction of usage of packaging material and packaging material waste.

Reuse: Multi-use packaging instead of single-use/ single time packaging.

Recycle: Converting waste packaging into materials for new packaging items.

Packaging Design Approach Targeted for Sustainable Packaging

For Reliance’s brand Hamleys, the plush toys developed out of India are made of 100% sustainable fibre sourced from the Company.

30% (~54K units) of Hamley’s e-commerce orders are fulfilled by Reliance’s re-useable gamified, up cycled packaging.

Green Initiatives - Packaging Design & Application

Pallet

Pallets are developed with 30% recycled HDPE instead of 100% new polymer

Recycle

Shelving Bin

Multiple use plastic bins instead of corrugated paper bin box

Reuse

Delivery Tote

Multi use Totes deployed for primary & secondary movement in place of single use plastic bags and corrugated boxes

Reuse

Delivery Bags

Development of multiple use customer delivery bags. Each delivery bag is made from R Elan Green Gold fabric using ~10 PCR_PET bottles

Recycle

Tote Partition

Minimum use of corrugated paper partition to avoid damages due to rattling, replacing conventional (non- biodegradable) Bubble Film & Inflated Air Packaging

Reduce

Protective Pack

In-house corrugated packaging waste in shredded protective packaging

Recycle

Reliance converts more than 2 billion post-consumer PET bottles. Reliance plans to double its PET recycling capacity to 5 billion PET bottles by setting up a recycled polyester staple fibre (PSF) manufacturing facility in Andhra Pradesh. Reliance’s R|Elan™ Green Gold converts polyester from ocean bound plastic into high quality branded polyester. The Company introduced a new product, R|Elan™ Ecogold, with Ciclo, one of the most environment-friendly fabrics that encourages sustainable fashion across different segments.

Reliance is driving various initiatives such as Fashion for Earth in partnership with Lakmé Fashion Week and the United Nations in India, Hub Excellence Programme and Circular Design Challenge to inculcate circularity and sustainability concepts in polymer, textile, and fashion industries.

Satyajit Vetoskar’s ‘Bandit’ label of accessories at the FDCI x Lakmé Fashion Week in March 2021 was the winner of the Circular Design Challenge. David Abraham and Rakesh Thakore for their label Abraham and Thakore presented a collection created from recycled PET under the theme “Assemble, Disassemble and Reassemble” as a pre-launch initiative.

Water and Effluent Management

Water is a critical resource used in the operations. With Reliance’s philosophy to reduce freshwater dependence, the Company has commissioned state-of-the-art technologies to reduce specific freshwater consumption, maximise recyclability and minimise external discharge. The world-class desalination unit at Jamnagar provides strategic advantage in terms of water management.

Reliance continues to focus on maximising wastewater recyclability and reusability of treated water. The treated effluent is reused in cooling towers, horticulture activities and firewater networks. Rainwater harvesting capacities are being augmented to 3,17,669 kL across RIL. All the manufacturing divisions have water efficient faucets and reuse treated wastewater for domestic purposes.

Reliance Retail in FY 2021-22 has made significant Investments in automation to improve operational efficiency and productivity in its quest to reduce overall water consumption. The Company has employed mechanised crate washers at fruits and vegetable processing centres that have reduced the consumption of water.

In FY 2021-22, the total water withdrawn for RIL stands at 224.19 million kilolitre out of which 32.94 million kilolitre was discharged and 103.54 million kilolitre was recycled. Additionally, the E&P vertical reported on 5.25 million kilolitre of produced water.

RIL'S WATER CONSUMPTION BY SOURCE

Way Forward

Reliance is going through a transformative phase. With its commitment to be Net Zero by 2035, it is investing heavily across all the levers of decarbonisation and changing its business which previously was heavily dependent on fossil fuels to new avenues of energy. The Company has planned significant investments in the next decade and will work along with strategic collaborators/partners to help India and the world transition to clean and green energy.