Apollo Tyres updates ESG goals

As part of its ESG (Environment, Social and Governance) commitment, Apollo Tyres has set a range of goals for the coming years, including carbon neutrality by 2050.

The company’s commitments are as follows:

• Carbon neutral by 2050. This would entail improving Scope-1 and Scope-2 emission intensity by 25 per cent by 2026 against the baseline year of 2020 and increasing renewable power to 25 per cent of the total by 2026.
• Improving water withdrawal intensity by 25 per cent by 2026 against the baseline year of 2019.
• Commitment to improve D&I (Diversity and Inclusion) to 12 per cent globally by 2026.
• Increase usage of sustainable raw materials to 40 per cent by 2030.

Speaking about the defined targets Neeraj Kanwar, vice-chairman and managing director of Apollo Tyres Ltd, said: “With an aspiration to be carbon neutral by 2050, we are working towards creating climate-resilient operations. Dedicated teams and investments are being made in energy-saving initiatives and towards renewable energy to be prepared for the future and to contribute towards a decarbonised tomorrow.”

Apollo’s aims in detail

Climate change and greenhouse gas (GHG) emissions have been posing significant challenges for companies, governments, and society at large. Apollo Tyres has systems in place to monitor and analyse its GHG emissions, which are independently verified by a third party, and reported annually in its Sustainability disclosures. The company has undergone climate risk assessment as per the Taskforce on Climate Related Financial Disclosure (TCFD) framework. Based on the identified areas, Apollo has formulated mitigation strategies and drawn an action plan to implement these.

With the Andhra Pradesh facility in India already running entirely on biomass, the company has accelerated its journey towards renewable energy usage across operations and move away from fossil fuels. The Chennai plant has guaranteed a supply of 40 million units through its investment in solar power; similarly, the Vadodara facility has captive capacities for solar and wind energy. Given the energy crisis in Europe, the operation is continuously improving upon its energy efficiency. At an overall organisation level, nearly ten per cent of power requirement in FY22 was met by renewable sources, and the company is committed to increase this to 25 per cent by 2026.

In line with other international tyre makers, Apollo Tyres has set a goal of achieving 40 per cent sustainable materials in its tyre compounds by 2030. The split up of sustainable materials will be 30 per cent biomaterials and ten per cent recycled materials. The company is investing in R&D and manufacturing to achieve the above target by conducting LCA (life cycle assessment) for its products.

Apollo Tyres declares that it “lays paramount importance to the judicious use of water, which is a scarce natural resource.” It has taken several steps within the organisation to ensure reuse and recycling of water and is also working to increase awareness of this issue in surrounding communities. The company monitors the specific water withdrawn per tonne of product and has a roadmap towards reducing this. A third party independently assures this water footprint and Apollo reports usage in Sustainability disclosures.

The company understands the importance of harnessing the power of Diversity and Inclusion (D&I) amongst its workforce and has been bringing in changes in policies and practices, undertaking targeted recruiting and building global cross-cultural teams.