Mining conglomerate Vedanta has committed over $1 billion towards its net-zero transition initiatives in the last five years, demonstrating a significant push towards environmental sustainability. This substantial investment has already yielded impressive results, with the company avoiding approximately 36 million tonnes of carbon emissions since FY2021.
Furthermore, Vedanta reported a notable reduction in its greenhouse gas (GHG) emissions intensity across its metals and mining production, declining by around 14% from its FY2020-21 baseline. These achievements underscore the company’s accelerated shift towards renewable energy, lower-carbon fuels, enhanced energy efficiency, and technology-driven decarbonisation strategies.
Surge in Renewable Energy Utilization
A key component of Vedanta's decarbonisation strategy is the dramatic increase in its renewable energy utilisation. In FY2025-26, the company's renewable energy use surged by 52% year-on-year, reaching 4 billion units (400 crore units). This amount is equivalent to the annual electricity consumption of approximately 30 million Indian households.
Vedanta currently boasts nearly 2,000 MW of installed and contracted renewable energy capacity. The company has set an ambitious target to achieve 2.5 GW of round-the-clock renewable energy capacity by 2030. This transition is particularly crucial for a metals and mining group, where energy consumption constitutes a major portion of both production costs and environmental emissions. Increased reliance on renewable electricity is expected to support both decarbonisation goals and efforts to improve energy efficiency.
Metals Portfolio Aligned with Energy Transition
Beyond its operational decarbonisation, Vedanta is strategically positioning its metals portfolio to capitalise on the global shift towards clean energy and electrification. India itself has set aggressive targets, aiming for 500 GW of non-fossil fuel-based power capacity by 2030, with 50% of its energy requirements met by renewable sources, and ultimately achieving net-zero emissions by 2070.
This massive energy transition will necessitate significant investments in renewable generation, transmission networks, power grids, energy storage, and electrification infrastructure, thereby increasing demand for critical metals and minerals. Vedanta's diverse portfolio, which includes copper, aluminium, zinc, silver, and steel, are all essential components for renewable energy, power, and infrastructure applications.
The company is also actively developing lower-carbon products. Examples include Vedanta Aluminium’s Restora and Restora Ultra, and Hindustan Zinc’s EcoZen. In FY2025-26 alone, customers utilising EcoZen products reportedly avoided approximately 8,268 tonnes of carbon emissions.
Technology Driving Efficiency and Sustainability
Vedanta is leveraging advanced technologies such as artificial intelligence (AI), automation, Industrial Internet of Things (IIoT), and advanced analytics across its various businesses. These interventions are designed to enhance energy efficiency, optimise industrial processes, and improve asset performance. This technological integration forms part of a broader, concerted effort to reduce the company's operational carbon footprint while simultaneously maintaining robust production efficiency.
“The global transition to clean energy demands both, sustainable materials and sustainable operations. Vedanta operates at the heart of this shift; producing the critical metals essential for a low-carbon future while aggressively decarbonizing our own footprint,” stated Priya Agarwal Hebbar, Non-Executive Director, Vedanta Ltd and Chairperson, Hindustan Zinc Ltd.
The company's commitment extends to strengthening responsible business practices. Vedanta Ltd, Vedanta Aluminium, and Hindustan Zinc have been recognised as leading performers in S&P Global’s corporate sustainability assessments. This comprehensive decarbonisation strategy combines reducing emissions from its own operations with increasing the production of materials deemed critical for India’s ambitious energy transition.