11/15/2021 | News release | Archived content
Reliance Industries Limited is a Fortune 500 company and the largest private sector corporation in India. Its mission is to "be the most admired, innovative and value generating organization for all our stakeholders". RIL is a significant player in the integrated energy value chain, which was the focus of Rakesh Agarwal's presentation to IFAC's PAIB Advisory Group at its September meeting. In addition to integrated Oil to Chemicals and Oil and Gas Exploration & Production (including the Jamnagar refinery which is the largest in the world), RIL's operating businesses include Retail, Digital Services and Media and Entertainment. Rakesh is responsible for RIL's integrated annual report and quality reviewer of sustainability reporting, and supports the integration of sustainability into RIL's strategy and operating model.
RIL established a target to become net carbon zero by 2035 (committed at its annual general meeting in 2020). This is a transformative 15-year vision to become a new energy company, with its focus on recycling carbon dioxide (CO2), creating value from CO2and plastic, and building clean and affordable energy with investments in hydrogen, wind, solar, fuel cells and battery. This net zero commitment is part of a value creation model to enable sustainable development through three strategic focus areas: digital technology platforms, new commerce (connecting producers, kirana stores and consumers) and decarbonization which will lead to greater financial inclusion and economic participation of India's citizens.
RIL's strategy is under the oversight of its Board which consists of independent thought leaders with requisite skill sets and domain expertise to guide RIL's operating businesses on their future growth path.
The Sustainability Context
Sustainability is about fundamentally making the world a better place to live in, and in relation to the environment (natural capital) specifically involves achieving clean air, clean water, preventing soil contamination and preserving flora and fauna.
It measures and manages three key material environmental impacts:
Of these areas, the most audacious area for climate change abatement is CO2emissions reduction to ensure that the 2035 net zero emissions target can be met.
Becoming Net Zero
RIL's net zero commitment is aligned to the international climate "Paris" agreement to limit the global temperature rise to 2-degree Celsius or lower (ideally 1.5-degree Celsius).
To deliver this commitment, RIL has established a vision and net carbon-zero strategy to build RIL as one of the world's leading new energy and new materials companies and involves a business model transition to Business-to-Business-to-Consumer (B2B2C) i.e., focusing on end-consumer value generation. This strategy requires significant investments in talent and partnerships, research and development (R&D) and innovation to decarbonize its operating model in the following ways:
C02as a recyclable and value-adding resource:
Replace transportation fuel:
Clean energy transition transforming RIL's energy business to tackle decarbonization as a new growth opportunity:
In 2021, RIL's climate action strategy for new energy has established massive investment in the following areas
To enable the strategy of executing and delivering world-class renewable energy solutions at scale, RIL shall focus on supporting the architecture for India's decentralized green economy creating millions of high-value jobs in
To achieve its climate commitment, RIL sets out to leverage its sustainability growth enablers of its (a) balance-sheet, (b) talent, (c) technology and (d) proven project execution capabilities.
Balance sheet strength is a critical factor. During such a significant transition, the legacy operating model may not be able to fully realize necessary cash flow. Consequently, RIL's strong balance sheet is key to enabling investment in sustainability initiatives and execution including investment in scientists and within operations, and partnerships with universities, tech firms and start-ups. The sustainability strategy is also expected to lead to new investor pools of financing.
Relevant RIL Reports