Case Study: Hindustan Zinc Limited – Transforming Wasteland into Greenbelt Using Sustainable Practices

 

Background

 Hindustan Zinc Limited (NSE: HINDZINC), a Vedanta Group company, is recognized globally as the second-largest integrated zinc producer and the third-largest silver producer. With a strong focus on sustainability, the company holds about 75% of India's primary zinc market share and supplies to more than 40 countries. Hindustan Zinc has been acknowledged as the world’s most sustainable company in the metals and mining category by the S&P Global Corporate Sustainability Assessment 2023. This recognition is due to its operational excellence, innovative practices, and Environmental, Social, and Governance (ESG) leadership. 

Initiative: Green Transformation of Jarofix Wasteland 

In its ongoing efforts to enhance biodiversity and promote sustainability, Hindustan Zinc Limited initiated a project to transform 16 hectares of wasteland at the Chanderiya Lead-Zinc Smelter into a greenbelt. The wasteland contained Jarofix, a residual waste generated from metal extraction from ore rich in iron. To reclaim this land, Hindustan Zinc partnered with The Energy and Resources Institute (TERI) and adopted Mycorrhiza technology, which promotes a symbiotic relationship between plants and fungi, enabling vegetation to thrive even in challenging conditions

. Phase 1 Success: 

The first phase of this initiative was completed successfully, converting 6.25 hectares of wasteland into a thriving greenbelt. About 11,000 native species were planted, resulting in a high-density green cover. This achievement earned Hindustan Zinc the CII National Award for Environmental Best Practices in 2021.

 Phase 2 Expansion: 

Building on the success of the first phase, the second phase aims to transform an additional 16 hectares. The focus is on further stabilizing dump slopes, controlling erosion, and boosting carbon sequestration. The goal is to create a naturally rich ecosystem and enhance biodiversity around the operational units of the company. 

Strategic Focus on Sustainability

 Hindustan Zinc's sustainability strategy focuses on two key approaches: mitigating and offsetting its carbon footprint. To mitigate its carbon footprint, the company is increasing its reliance on renewable energy and improving operational efficiency. For example, it recently started receiving power from Serentica's 180 MW solar project as part of a 450-MW renewable power delivery agreement. To offset its carbon footprint, the company undertakes massive afforestation drives to create carbon sinks. 

Miyawaki Plantations and Collaboration with IUCN:

 In addition to the Mycorrhiza technology, Hindustan Zinc has implemented Miyawaki plantations across its operational sites, establishing dense, diverse, and rapidly growing forests. Moreover, it is the first Indian company to launch a Taskforce on Nature-Related Financial Disclosures (TNFD) report, aimed at integrating nature-related risks and opportunities into strategic planning. The company has also signed a three-year collaboration with the International Union for Conservation of Nature (IUCN) to further its environmental stewardship. 

Results and Recognition

 The transformation of the Jarofix wasteland into a vibrant greenbelt serves as an excellent example of how industries can proactively address environmental challenges while contributing to broader sustainability goals. Hindustan Zinc has pledged to complete 1 million plantations by 2025 to enhance carbon sequestration and biodiversity conservation.

 Awards and Certifications:

 Hindustan Zinc has been awarded the Leadership Band (A-) designation by the Carbon Disclosure Project (CDP) for its exemplary efforts in water security and climate change. The company has also launched EcoZen, Asia's first low-carbon "green" zinc brand produced using renewable energy. This product boasts a carbon footprint of less than 1 tonne of carbon equivalent per tonne of zinc produced, which is approximately 75% lower than the global average. 

Commitment to Net Zero and Social Responsibility 

The company is a certified 2.41 times water-positive organization and has committed to achieving Net Zero emissions by 2050 or sooner. Additionally, Hindustan Zinc is transforming the lives of 1.9 million people through its focused social welfare initiatives, positioning it among the Top 10 CSR companies in India. The company is dedicated to providing critical metals essential for the global energy transition towards a sustainable future. 

Discussion Question

•  . Sustainability and Innovation: How does the use of Mycorrhiza technology reflect Hindustan Zinc's commitment to sustainability and innovation? Can this model be replicated in other industries? 
•  Strategic Environmental Management: Evaluate Hindustan Zinc's two-pronged approach to mitigating and offsetting its carbon footprint. How effective do you think this strategy is in achieving their sustainability goals?
•  Biodiversity and Ecosystem Restoration: Discuss the impact of transforming wasteland into greenbelt areas on biodiversity and the local ecosystem. What are the potential long-term benefits of such initiatives?
•  . Corporate Social Responsibility (CSR): How does Hindustan Zinc's approach to CSR contribute to its brand reputation and business sustainability? Can this approach create competitive advantages?
•  . Challenges and Future Outlook: What challenges might Hindustan Zinc face in maintaining its position as a leader in sustainable mining? How can it overcome these challenges?

 Teaching Notes •

 Objective: The case study explores the role of innovative technologies and strategic planning in driving sustainability in the mining industry. It also provides an opportunity to discuss the importance of corporate social responsibility, ecosystem restoration, and the broader implications of sustainable business practices. •

 Key Concepts: Sustainable Development, Corporate Social Responsibility (CSR), Biodiversity Conservation, Environmental Management, Strategic Planning, and Innovation in Business Practices

. • Analysis Approach: Encourage students to critically analyze Hindustan Zinc's strategies and draw parallels with other industries. Discussions should focus on how businesses can integrate sustainability into their core operations and the potential for creating shared value.

  Further Exploration: The case can be extended by exploring how other companies in the metals and mining industry or similar sectors are adopting sustainable practices. Discussions could also cover policy implications and global standards related to environmental sustainability in industries