Our Approach
Our sustainability strategy: Share the Future
Our Share the Future strategy continues to propel Birla Carbon and our customers into the 2030s — as a future-focused organization with an emphasis on innovation and environmental, social, and governance (ESG) as a business strategy that complements customer-facing solutions for a sustainable and circular world.
We approach everything we do with the future in mind: from employee training and product development to reducing emissions and scaling circularity. Our Share the Future Strategy is a roadmap to results, driving forward our actions to achieve net zero carbon emissions by 2050. We seek to reduce our impact beyond direct operations by supporting, and collaborating with, customers and suppliers to achieve similar sustainable progress.
Birla Carbon’s aim is to embed innovation and sustainability into the business and build on a strong foundation of operational excellence across all locations globally. Sustainability is core to Birla Carbon and guides all major company strategic decisions.”
Focusing on What Matters
The issues described within this report reflect the outcomes of our FY2024 double materiality assessment. Issues were assessed based on their significance to stakeholders (impact materiality) and business impact to Birla Carbon (financial materiality). To effectively consider internal and external impacts, we continually review the challenges that are most relevant to our business.
Environment
The assessment underscored our commitment to transition to net zero and further highlighted the importance of understanding and mitigating the carbon footprint associated with our manufacturing process. It further reinforced the importance of continuing to manage potential pollutants and track emerging issues such as nanoparticle regulations and impacts.
Another notable yet expected finding included a realization of the societal benefits and positive financial impact of circular production inputs and resource optimization strategies.
Birla Carbon considers the following environmental topics to be relevant to our business:
- Climate Change
- Pollution
- Water and Marine Resources
- Resource Use
- Circular Economy
- Ecosystems
People and Society
Our assessment also highlighted the importance of mitigating potential health risks associated with manufacturing sustainable carbon products and nanotubes. This was not unexpected, as the safety of our employees and the customers who use our products has long been a key area of attention and effort. Our analysis also emphasized the importance of ensuring Birla Carbon has the appropriate subject matter experts and can attract and retain talent to support our business strategy.
Birla Carbon considers the following social topics related to our own workforce, workers in our value chain, affected communities, consumers, and end-users to be relevant to our business:
- Human Rights
- Employee Engagement
- Diversity and Inclusion
- Community and Customer Engagement
- Health and Safety
Governance
Our assessment reinforced the importance of investing in corporate culture, preventing corruption, and ensuring transparency in line with Birla Carbon’s ESG ambitions. As such, business conduct remains a top governance priority.
Birla Carbon considers the following governance topics to be relevant to our business:
- Governance
- Business Conduct
- Ethics
- Business Continuity
Innovation
Mobility
Globally, three transformative mobility revolutions are underway: sharing, electrification, and automation.
Electric cars may have positive implications for our industry, as they wear through tires more quickly than traditional vehicles and use carbon black in battery technology.
The effect of driverless cars is more uncertain, as they may enable a transition to fleet models of shared mobility, replacing ownership and leading to fewer cars and thus reduced carbon black demand.
There is also a growing demand for walkable and bikeable cities, with visible efforts worldwide to reduce car use and congestion. By 2030, fleets of on-demand, shareable, driverless electric vehicles may also reduce traffic. Stakeholder opinions on this topic are divided as to whether this will affect carbon black demand or not. Changes to urban planning will, however, undoubtedly generate challenges.
Digitalization
The increased tethering of devices to the internet will create a wide network of intelligence nodes that will result in a highly connected world. Connectivity and convergence of new technologies will unleash the full potential of the Internet of Things (IoT) and the launch of multiple innovative applications that will change the way we live, communicate and conduct business. Artificial intelligence (AI)-driven systems will enable real-time data processing and analytics, transforming vast amounts of manufacturing data into actionable insights that help optimize production schedules, predict equipment failures, and streamline supply chain operations.
Automation
Products and processes across logistics, industry, aerospace, smart home infrastructure and vehicles will become fully automated and intelligent. Advancement in digital infrastructure, manufacturing and autonomous products will likely transform daily life. The integration of AI technologies such as predictive maintenance and collaborative robots is transforming traditional manufacturing workflows, allowing companies to optimize processes in real-time, while freeing human workers to focus on strategic, high-value activities.
Climate
Climate change-related policies could profoundly shift consumer transportation away from cars by 2030, resulting in a marked impact on our business. Potential carbon taxes could also influence oil prices, affecting the availability of our feedstock.
However, as a material impact there could be more demand for carbon black as tire components that improve efficiency are prioritized. The transition to EVs has the potential to drive increased demand for carbon black in tire manufacturing. EV tires require more carbon black than standard passenger tires due to higher torque and heavier battery loads that accelerate tread wear.
Demographic Shifts
Class Growth
The popular definition of a growing middle class implies more consumption in emerging economies. However, premature deindustrialization is already visible in some African and Asian countries, leading to a different, less affluent model of “middle class” that prioritizes access over possession. For Birla Carbon, the fact that a rising middle class may not mean a rise in consumption is a challenge.
Millennials and Gen Z
A new way of living that values access over ownership is emerging. This lifestyle is driven by millennials and, more recently, Generation Z. A key indicator of this is changing car use: using car-sharing services in place of ownership. As millennials will be the dominant generation by 2030, this represents a significant challenge for Birla Carbon.
Resources
Fossil Fuels
Oil availability will inevitably have an impact on our business, as carbon black production requires feedstock that is a byproduct of oil. There is a need for Birla Carbon and others to consider alternative sources over the next decade, particularly in the face of other attractive materials such as silica.
Energy
The global shift from fossil fuels to renewables may impact oil demand and pricing, and affect electricity generation or transportation. Any change from traditional energy and transportation systems represents both challenges and opportunities for Birla Carbon in terms of resilience and adaptation.
Circularity
Carbon black is a highly engineered material requiring carbon-rich feedstock. As such, using renewable or recycled sources which contain elements besides carbon in our production process presents significant emissions and environmental challenges. Once incorporated into finished rubber or plastic products, carbon black is difficult to separate from other materials, making it challenging to recover in its original form. However, through partnerships and focusing on areas where we can be more flexible in our processes, Birla Carbon seeks to lead the industry in Sustainable Carbonaceous Material (SCM), curving the linear model of our value chains.
Water
Water availability is a key focus area for all industries – as nearly half the global population is expected to face water shortages by 20306. Water use reduction and recapture will become increasingly important for Birla Carbon in this timeframe, particularly for facilities located in water stressed areas.
Contribution to Sustainable Development Goals
With manufacturing sites and offices in 14 countries across five continents, Birla Carbon works in geographies as far apart as Canada, Brazil, Spain, Egypt, and South Korea. As the world’s largest producer of sustainable carbon products, Birla Carbon views our global footprint as more than just access to key markets. It is also an opportunity to invest in the long-term progress of the communities in which we operate.
Economy
Society
Environment
