Hindustan Copper Limited (HCL) has received its FY2025 ESG Rating Rationale Report from NSE Sustainability Ratings and Analytics Limited (NSE SRAL). HCL’s overall rating for FY2025 is 55 (Average), down from 57 in FY2024. Key drivers show an Environment Score of 44 (Weightage 39%), a Social Score of 72 (Weightage 30%), and a Governance Score of 52 (Weightage 31%). The company noted it did not engage NSE SRAL for this rating.
Hindustan Copper Receives FY2025 ESG Rating
Hindustan Copper Limited (HCL), a government-owned copper producer, has been informed by NSE Sustainability Ratings and Analytics Limited (NSE SRAL) regarding its ESG evaluation for the financial year 2024-25. The assessment covers HCL’s performance across Environment, Social, and Governance pillars, based on publicly available data.
Crucially, HCL specified that it independently prepared the report based on public data, as it did not engage NSE SRAL for the ESG Rating for FY 2024-25.
FY2025 ESG Scorecard Summary
The final rating category for FY2025 is Average, derived from the following pillar scores and weightages:
- Environment Score: 44 (Weightage: 39%)
- Social Score: 72 (Weightage: 30%)
- Governance Score: 52 (Weightage: 31%)
This compares to the previous year’s FY2024 rating, which stood at 57.
Key Drivers Impacting Pillar Scores
Environmental Assessment (Score: 44)
The lower score in the Environment pillar is driven by several challenges:
- Waste Generation: Waste generated per unit of production remains high, despite a 24% decrease year-over-year.
- Water Intensity: Performance is below standard practices, showing an increase of 57% compared to the previous year.
- GHG Emissions & Energy: Greenhouse gas emissions from direct operations and energy consumption exceed industry averages. Energy intensity is above benchmarks (though decreased by 20%).
- Data Gaps: No information was provided on Scope 3 emissions intensity, and energy consumption from renewable sources is subpar.
Social Assessment (Score: 72)
Positive factors contributing to the Social Score include:
- Safety & Welfare: The lost time incident rate is low compared to peers, and 0 fatalities were reported for workers.
- Employee Relations: The organization is receiving a lower number of grievances, and turnover among permanent employees is lower than average (a 26% decrease year-over-year).
- Procurement: The organization’s domestic procurement rate is higher than industry standards.
- Areas for Improvement: Women are underrepresented in the organization compared to industry standards.
Governance Assessment (Score: 52)
The Governance pillar highlights a mixed performance:
- Strengths: The company meets requirements for women on the board, and independent director representation in the Nomination and Remuneration Committee and Audit Committee is better than statutory guidelines.
- Weaknesses: The board’s composition does not meet the required percentage of independent directors. Furthermore, Female directorship is below the stipulated minimum, and the Nomination and Remuneration Committee lacks sufficient independent representation.
Core ESG Rating (Based on BRSR Core Data)
In a separate evaluation focusing on verified data from BRSR Core disclosures, HCL achieved a Core ESG Rating of 73 for FY2025. This rating is structured as follows:
- Environment Score: 56
- Social Score: 76
- Governance Score: 90
Methodology Context
NSE Sustainability’s assessment relies on a multifaceted approach, utilizing data from Annual Reports, ESG Reports, BRSR, and Company Website filings. The final rating incorporates analysis across five criteria: Performance, Compliance, Policy, Initiatives, and Best Practice, weighted based on a Materiality Matrix relevant to the Metals & Mining sector.
Source: BSE
