Environmental Strategy
Strategy and its objectives
The overarching goal for countering climate change will be to strive to achieve climate neutrality by 2050. Reduction of the carbon footprint (in Scopes 1 and 2) by 30% by 2030 relative to 2018 in line with the <2⁰C pathway of the Paris Agreement was adopted as the Group’s medium-term goal.
The Group has set a medium-term goal of reducing GHG emissions - carbon footprint by 27% already by 2026 (relative to the base year 2018), which we want to achieve through specific projects already underway and planned in the business strategy and using known and available technologies
In the 2050 outlook, in pursuit of Netzero, using the method of successive approximations along with the advancement and commercial accessibility of business and environmentally effective technologies, as well as with regard to customer expectations and current production and business scale forecasts, we plan to develop activities related to engagement in new sources of energy generation from RES, participation in research and development of technologies for ventilation air methane capture (VAM), carbon dioxide capture (CCUS) and development of hydrogen technologies. If the remaining emissions cannot be reduced, residual emissions offsets and other neutralization methods are planned.
JSW Group's key plans in the environmental area untli 2030
Taking a responsible approach and applying the highest environmental standards and adopting climate targets consistent with the Paris Agreement
Air protection and emissions reduction
Reduction of emissions to air
- Adoption of GHG reduction targets consistent with the Paris Agreement
- Adaptation of plants to environmental best available technology (BAT) emission requirements
- Further optimisation of energy consumption and use across JSW Group's operations
- Search for partners to develop own renewable energy capacity
Continuous monitoring of emissions and efforts to reduce greenhouse gas emissions using the best available technologies in line with Polish and EU climate targets
Respect for water and biodiversity
Protection of water and biodiversity
- Rational water management
- Care for the quality of water discharged into the environment
- Minimisation of impact
on water and biodiversity - Support for the protection of biodiversity
Effective water management and operating with respect for biodiversity
Aim of developing a circular economy
Optimal management of extractive waste
- Reduction in the amount of waste generated
- Planning and developing improved waste management options
- Producing and selling mine rock aggregates
Minimisation of waste streams, continuous monitoring of waste from production processes and its segregation
Land rehabilitation
Resources and land rehabilitation
- Examining the possibilities for limiting emissions from mining operations
- Carrying out land rehabilitation along with the progress of longwall works
- Rectification of mining damages
Carrying out activities in the field of rehabilitation and management of areas transformed as a result of mining activities in order to restore them and to restore their natural and landscape values
JSW Group carbon footprint: GHG emission reduction targets
Existing initiatives and commitments
Air protection and emissions reduction
COMMITMENT: JSW Group strives to reduce GHG emissions by at least 30% until 2030, compared to 2018 (at the level of <2oC in line with the Paris Agreement) and reach climate neutrality not later than 2050*
Climate targets
| KPI | 2026 | 2030 |
|---|---|---|
| GHG emission reduction in scopes 1&2* (compared to 2018) |
-27% | -30% |
| Methane capture | up to 50% | Update in 2024, after new methane content forecasts |
| Economic use of captured methane | >95% | >95% |
| Purchase of electricity from renewable energy sources (on top of energy produced and used internally) | 100% | 100% |
| Volume of energy savings (ground infrastructure) | 35 300 MWh | To be determined after the next energy audit |
ACHIEVEMENTS AND ON-GOING ACTIVITIES
- Capture and economic use of methane to produce energy - currently approx. 86 million m3 of methane annually, which is equal to approx. 1.73 million Mg CO2e.
- Implementation of energy project "Economic use of methane" (expansion of generating capacities) 48 MW
- Modernisation of coking batteries
- Construction of 28 MWe energy unit
- Energy efficiency improvements
- Modernisation of air conditioning systems
- Investments in photovoltaicę
JSW Group carbon footprint: 30% emission reduction by 2030 based on strategic initiatives
Initiatives incorporated into the Group's business plans
2026 target
The principal objective is to reduce emissions by 27% already by 2026 (compared to base year 2018), which will be achieved by the Group thanks to planned projects and using known and available technologies.
STRATEGIC PROGRAMS
- GJSW Group has been running the "Economic Use of Methane" program since 2018 with the aim of reducing methane emissions to air and its use in the production of energy.
- The second planned program aimed at reducing methane emissions is the "Methane Emission Reduction" program, intended to increase methane capture to 50% and methane use to 95%.
- In 2024, the Group lans to update its emissions forecasts and on this basis will adapt subsequent projects for the period 2026-2030 so as to achieve a reduction level consistent with the Paris Agreement.
DEVELOPMENT PLANS
- Further optimisation of electricity use
- Development of own RES capacities and search for partners to generate electricity from renewable sources
- Carrying out innovative development initiatives related to emission reduction - VAM, CCUS, hydrogen and more.
*Emission forecast based on JSW's methane level forecast to 2026, developed in December 2021
GHG EMISSION FORECASTS AND REDUCTION PLANS
GROUP CLIMATE TARGETS
As a supplier of a critical raw material, we see JSW Group's key role in the transition of the European economy toward climate neutrality.
As JSW Group, we strive to reach climate neutrality not later than 2050, with an intermediate target of reducing the Group's carbon footprint by at least 30% by 2030
(scopes 1&2, compared to 2018).
Environmental strategy in JSW Group's business model and its communications with the market
PLANNED EXPENDITURES UNTIL 2030 ~ PLN 4,3 billion
- Activities related to air protection, including adaptations to BAT requirements approx. PLN 3.7 billion
- Activities related to water protection approx. PLN 0.5 billion
- Activities related to rational waste management and land rehabilitation approx. PLN 0.1 billion
MANAGEMENT
- Assignment of responsibility for climate matters
- Expansion of the Environmental Emissions Team's activity
- Implementation of climate risk management into existing ERM system processes
COMMUNICATION AND REPORTING
High-priority approach to environmental and climate disclosures, including:
- Adaptation of ESG reporting to new requirements. Reporting in line with TCFD guidelines
- Readiness to disclose the level of scope 3 emissions from 2023
- Taxonomy reporting on JSW Group's business
- Participation in specialist ratings concerning ESG and climate
Activities and initiatives undertaken in 2022
JASTRZĘBSKA SPÓŁKA WĘGLOWA:
- received grade „C” in CDP rating
- fourth place in the fourth edition of the Company Climate Awareness Survey
In July 2022, the Parent Company began reporting on climate issues for the first time and received a high grade in the renowned CDP rating. The survey revealed 103 Polish companies, of which only 16 received the highest grades of A to C. JSW, joining for the first time, received a high “C” grade and surpassed all companies in the mining industry.
JSW was ranked among the most climate-conscious companies in the fourth edition of the Company Climate Awareness Survey, which awarded JSW fourth place among 152 listed companies (the report evaluated was for 2021).
JSW has entered into a power purchase agreement for 2024-2025, which provides the opportunity to conclude and balance electricity under PPAs.
JSW's Management Board established a Project Team to work out a concept for the development of its own RES capacity. As a result of the work of the Team, the JSW Management Board approved the Concept for the implementation of the PV farm construction program planned for implementation in 2023-2028.
GROUP
In 2022, within the Group, in JSW Ochrona and PBSz, photovoltaic panels with the total capacity of 0.08 MWp were installed. Currently, there are PV installations with the total capacity of ca. 0.86 MWp operating at the JSW Group.
JSW KOKS continued construction of a new power unit at the Radlin Coking Plant with a design capacity of 28MWe, which is to be powered by coke oven gas, and the electricity and heat produced will be used for its own needs and sold externally, thus reducing the Group's Scope 2 carbon footprint.
Both in the Parent Company and other Group companies, projects were carried out to improve energy efficiency, including, among others: reactive power compensation, modernization of lighting, heating networks, heat exchangers, main drainage pumping stations, thermal modernization of buildings, installation of heat pumps, often correlated with the process of obtaining energy efficiency certificates (the so-called white certificates). In order to reduce the use of so-called F-gases, the modernization and expansion of central air-conditioning systems for underground workings is being successively implemented.
Through JSW Nowe Projekty, we participate in many research and development measures, with the aim to transition to a low-emission and circular economy and improve energy efficiency. For more about the ongoing projects see Section 9.14.