The JSW Group has been carrying out (since 2017) integrated estimation of the carbon footprint of the organization and two key products – coal and coke (Scopes 1 and 2), based on the GHG Protocol standard using an implemented tool supporting the calculations. From 2023, the area under review was expanded for Scope 3.
Calculations of emissions were carried out for Scopes 1, 2 and 3 in accordance with the following standards:
The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard REVISED EDITION, WRI, WBCSD;
The Greenhouse Gas Protocol: Scope 2 Guidance An amendment to the GHG Protocol Corporate Standard, WRI, WBCSD;
The Greenhouse Gas Protocol: Corporate Value Chain (Scope 3) Accounting and Reporting Standard, WRI, WBCSD.
within certain organizational and operational boundaries, which together constitute the boundaries of the inventory-taking.
The calculations take into account emissions of the following greenhouse gases: carbon dioxide, methane and HFCs. SF6, N2O, NF3 and PFC emissions did not occur in the Group in 2025 or in previous years. Accordingly, they were not included in the calculations. For HFC mixtures with other gases, the emissions of each mixture component were determined separately.
The scope of reported emissions (operational boundaries) includes:
gross Scope 1 (Scope 1, direct emissions), emissions from sources owned or controlled by the Group.
gross scope 2 (scope 2, indirect emissions resulting from the generation of electricity, thermal energy, cooling and compressed air purchased by Group entities). Scope 2 emissions for all the significant types of energy were calculated in accordance with the GHG Protocol Scope 2 Guidance using two methods:
Location-based method, which quantifies GHG emissions based on average energy production emission factors for specific locations, such as a country. Location-based Scope 2 emissions were calculated using emission factors from the National Balancing and Emission Management Center for electricity, from the Energy Regulatory Office (ERO) for thermal energy, and values provided by suppliers for cooling and compressed air, given the specific nature of these utilities.
to calculate emissions using the market-based method, CO₂ emissions intensity ratios used came from electricity and heat suppliers which the Group companies have executed energy supply contracts with. The factors relating to suppliers are provided and published pursuant to Regulation of the Minister of Climate and Environment of 22 March 2023 on detailed conditions of operation of the electric power system, and include: the structure of fuels and other primary energy carriers consumed for energy generation, and information on the environmental impact of electricity generation, including CO₂ emission factors. In 2025, the Group did not use contractual instruments for energy purchase in combination with its attributes (such contracts as PPA, or Power Purchase Agreement, vPPA, or Virtual Power Purchase Agreement) in the form of certificates of origin and neither did it use unrelated statements on energy attributes or separate purchase and redemption of certificates of origin. In a medium-term perspective (1-5 years), the Group intends to adopt gradually the above contractual instruments, entering into relevant PPA or vPPA agreements or purchase certificates of origin separately.
gross Scope 3 (Scope 3, indirect emissions of remaining categories from 1 to 15) emissions that are a consequence of the Group's operations, but come from sources that are not owned or controlled by the Group. To measure Scope 3 emissions, no primary data were used that would come from suppliers or other partners in the value chain.
The organizational boundaries of reported emissions include the Parent Company and all Group companies according to operational and financial control – 100% of emissions from all group companies.
As part of the latest reporting cycle for 2024, adjustments were made to the emissions data for Scope 3. During the re-verification of the data, it was found that in the previous reporting cycle, the indicator used to calculate emissions in this category had been miscalculated. This error resulted in a significant underestimation of the value of emissions attributed to Category 1. The correction concerned Scope 1 (purchases of goods and services) for all Group companies and affected Scope 3 emissions, and consequently the Group’s total carbon footprint (Scopes 1, 2 and 3), calculated using both the location-based and market-based methods.
Under the GHG Protocol guidelines and previous reporting, 2017 was considered to be the base year. In connection with the new sustainability reporting standards (ESRS) and the definition of the base year, it is assumed that the base year is the year to which the GHG emission reduction targets refer. For the JSW Group, according to the current Environmental Strategy, the base year for ESRS reporting will be 2018.
Currently, the Environmental Strategy and the methane forecasts of mines which are the main source of GHC emissions (more than 70% of total Group emissions) are being updated. On the basis of updated methane forecasts, the revision of the Methane Emissions Reduction Program will be conducted to maximize the level of commercial methane utilization in the most optimal and effective way, and prepare the new energy balance of the Group. During the update, it is also planned to review national and EU legal requirements and to analyse in detail climate-related physical and transition risk, their impact on assets in different time horizons and throughout the value chain. An analysis of the emission reduction path consistent with limiting global warming.
Biogenic emissions
In connection with using fuel (gasoline and diesel) in the car fleet and power generators, and heating oil used for heating purposes, we identified biogenic emissions. The value of the emissions was 2 486,4 tons of CO2e in 2025. No biogenic emissions were identified in Scopes 2 and 3.
The expected carbon footprint reduction (Scopes 1 and 2) by 30% by 2030 is being implemented based on long-term activities that are part of the Group's business strategy.
As part of the implementation of the JSW Group's 2025 Environmental Strategy, the Group continued its efforts to mitigate climate change, including reducing greenhouse gas emissions through the Methane Emission Reduction Program and improving energy efficiency, resulting in a 24.8% reduction in GHG emissions (Scope 1 and 2 market-based) compared to the baseline year of 2018.
In 2025, methane emissions had decreased by 32.5% compared to 2018, which was used as the reference year for the reduction target. In 2025, approximately 91 million m³ of methane was utilized (on a par with 2024), which, when converted to carbon dioxide equivalent, prevented the emission of approximately 1.94 million tons of CO₂e per year.
In turn, the efficiency of captured methane utilization increased from approx. 63% in 2024 to 81% in 2025.