Cement Sector Groundwater Use Rose in Stressed Areas in FY25
POWER & RENEWABLE ENERGY

Cement Sector Groundwater Use Rose in Stressed Areas in FY25

India’s cement sector improved its energy and carbon efficiency in Financial Year 2025, but its groundwater use in water-stressed regions increased sharply, according to a report by iFOREST, a Delhi-based environmental research organisation. The share of groundwater usage in such areas rose to 38 per cent from 27 per cent in FY2024.

The report, titled BRSR Disclosure: ESG Performance Assessment of the Cement Sector, assessed 18 cement companies against 107 Business Responsibility and Sustainability Reporting indicators for FY2024 and FY2025. The companies covered 87 per cent of India’s cement production, providing a broad assessment of the sector’s environmental, social and governance performance.

Energy use fell to 2.54 gigajoules per tonne, below the global average of 2.88 gigajoules per tonne. However, renewable sources accounted for only 5.1 per cent of the sector’s energy mix. Carbon emissions intensity also declined slightly, although total emissions increased 4 per cent to 224.3 mn t, equivalent to roughly 6 to 7 per cent of India’s overall emissions.

The report also highlighted concerns over workplace safety and pay disparities. Work-related injuries rose from 263 in FY2024 to 359 in FY2025, an increase of 36.5 per cent. Women in key managerial roles earned 26.8 per cent less than men, while median pay for women workers declined 11.1 per cent even as median pay for men increased.

The sector employs about 228,000 people, of whom 63 per cent are contractual workers, 3.1 per cent are women and 0.07 per cent are persons with disabilities. iFOREST chief executive officer Chandra Bhushan said the sector’s energy efficiency compared with the global average was positive, but its growing pressure on groundwater in dry regions and continuing worker health and safety concerns required greater attention.

India’s cement sector improved its energy and carbon efficiency in Financial Year 2025, but its groundwater use in water-stressed regions increased sharply, according to a report by iFOREST, a Delhi-based environmental research organisation. The share of groundwater usage in such areas rose to 38 per cent from 27 per cent in FY2024. The report, titled BRSR Disclosure: ESG Performance Assessment of the Cement Sector, assessed 18 cement companies against 107 Business Responsibility and Sustainability Reporting indicators for FY2024 and FY2025. The companies covered 87 per cent of India’s cement production, providing a broad assessment of the sector’s environmental, social and governance performance. Energy use fell to 2.54 gigajoules per tonne, below the global average of 2.88 gigajoules per tonne. However, renewable sources accounted for only 5.1 per cent of the sector’s energy mix. Carbon emissions intensity also declined slightly, although total emissions increased 4 per cent to 224.3 mn t, equivalent to roughly 6 to 7 per cent of India’s overall emissions. The report also highlighted concerns over workplace safety and pay disparities. Work-related injuries rose from 263 in FY2024 to 359 in FY2025, an increase of 36.5 per cent. Women in key managerial roles earned 26.8 per cent less than men, while median pay for women workers declined 11.1 per cent even as median pay for men increased. The sector employs about 228,000 people, of whom 63 per cent are contractual workers, 3.1 per cent are women and 0.07 per cent are persons with disabilities. iFOREST chief executive officer Chandra Bhushan said the sector’s energy efficiency compared with the global average was positive, but its growing pressure on groundwater in dry regions and continuing worker health and safety concerns required greater attention.

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