Vedanta invests $1 billion in net-zero push as emissions fall 36 million tonnes

Mining major Vedanta has invested more than $1 billion in net-zero transition initiatives over the past five years, as the company accelerates its shift towards renewable energy, lower-carbon fuels, energy efficiency and technology-led decarbonisation.

The company said its initiatives have helped avoid approximately 36 million tonnes of carbon emissions since FY2021, while greenhouse gas emissions intensity across its metals and mining production declined by around 14% from the FY2020-21 baseline.

Renewable energy use jumps 52%

Vedanta’s renewable energy utilisation increased 52% year-on-year to 4 billion units, or 400 crore units, in FY2025-26. The company said this is equivalent to the annual electricity consumption of around 3 crore Indian households.

Vedanta currently has nearly 2,000 MW of installed and contracted renewable energy capacity and is targeting 2.5 GW of round-the-clock renewable energy capacity by 2030.

The move is significant for a metals and mining group, where energy consumption is a major component of production costs and emissions. Increasing the use of renewable electricity could therefore support both the company’s decarbonisation targets and its efforts to improve energy efficiency.

Metals positioned for energy transition

Vedanta is also positioning its metals portfolio to benefit from the global shift towards clean energy and electrification.

India has set a target of achieving 500 GW of non-fossil fuel-based power capacity by 2030, alongside its broader goal of meeting 50% of its energy requirements from renewable sources and achieving net-zero emissions by 2070.

MUST READ: 'I had little money in my pocket, but...': Vedanta's Anil Agarwal recalls his first 8 ft x 9 ft office in Mumbai

The transition will require significant investment in renewable generation, transmission networks, power grids, energy storage and electrification, potentially increasing demand for metals and minerals.

Vedanta’s portfolio includes copper, aluminium, zinc, silver and steel, all of which are used across renewable energy, power and infrastructure applications.

The company is also developing lower-carbon products, including Vedanta Aluminium’s Restora and Restora Ultra and Hindustan Zinc’s EcoZen. In FY2025-26, customers using EcoZen avoided approximately 8,268 tonnes of carbon emissions, according to Vedanta.

Technology drives efficiency

Beyond renewable power, Vedanta is using artificial intelligence, automation, Industrial Internet of Things and advanced analytics across its businesses to improve energy efficiency, optimise industrial processes and enhance asset performance.

The company said these interventions form part of a broader effort to reduce its operational carbon footprint while maintaining production efficiency.

ALSO READ: Vedanta unit seeks $1.4 billion mega loan from three banks: Report

“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,” said Priya Agarwal Hebbar, Non-Executive Director, Vedanta Ltd and Chairperson, Hindustan Zinc Ltd.

Vedanta said its companies are also strengthening responsible business practices, with Vedanta Ltd, Vedanta Aluminium and Hindustan Zinc featuring among leading performers in S&P Global’s corporate sustainability assessments.

The company’s decarbonisation strategy therefore combines reducing emissions from its own operations with increasing production of materials expected to be critical to India’s energy transition.

(With PTI inputs)

SEE ALSO: 'Ladka theek lagta hai...': How Atal Bihari Vajpayee helped Anil Agarwal list Vedanta in London