Double Materiality

Identifying What Matters Most

JSL applies a Double Materiality Assessment (DMA) framework to identify and prioritise ESG topics that are most significant from both impact and financial risk and opportunity perspectives. This ensures that sustainability considerations are integrated into core business strategy, risk management, and long-term value creation.

01

GRI Standards

GRI 2-12 GRI 3-1 GRI 3-2 GRI 3-3
02

UNGC

Principle 7 Principle 8 Principle 9 Principle 10
03

UN SDGs

04

SASB

SASB Iron & Steel Producers Standard

05

IFRS

IFRS S1 – Governance, Strategy, Risk Management, Metrics & Targets, Materiality, and Connected Information

The DMA was conducted in FY25 and subsequently reviewed during the reporting year. In line with established governance practices, each assessment is reviewed at least annually and is subject to third-party assurance, thereby strengthening the rigour, credibility, and objectivity of the overall assessment process.

The assessment is anchored in the principle of double materiality, considering not only the impact of environmental and social factors on the business but also the Company’s impact on the environment and society across its value chain. To further strengthen decision-making, the outcomes of the materiality assessment are integrated with JSL’s Enterprise Risk Management (ERM) framework, ensuring that ESG-related risks and opportunities are systematically embedded into business planning and strategic decisions. The final outcomes, including the prioritisation of material topics, are reviewed and formally approved by the Board of Directors, reinforcing governance oversight and alignment with the Company’s long-term strategic priorities.

For detailed methodology, stakeholder engagement, and the full Double Materiality Matrix, please refer to ESG Overview section of JSL’s corporate website.

The assessment identified 15 ESG topics, categorised into three priority tiers:

01

Critical:

Energy & Emissions, Circular Economy & Waste Management, Water & Wastewater Management, Occupational Health & Safety, Supply Chain Management, Corporate Governance, and Risk Management

02

Significant:

Human Capital Management, Biodiversity, Community Relations, Human Rights, and Product Stewardship

03

Important:

DE&I, Data Privacy & Security, and Data Management & Disclosures

Double Materiality Matrix

The assessed topics were plotted on a Double Materiality Matrix with Impact Materiality on the horizontal axis and Financial Materiality on the vertical axis. This visual representation allows the Company and its stakeholders to quickly identify which topics demand the most immediate and sustained attention.

Financial Materiality
Significant Topics
Critical Topics
Important Topics
Impact Materiality

Mapping ESG Priorities

Following validation and threshold-based screening, a final set of 15 ESG topics was identified for assessment. While Corporate Governance & Business Ethics and Risk Management do not appear on the double materiality matrix, both have been designated as Tier I (Critical) topics given their foundational relevance to JSL’s governance framework.

Pillar ESG Topics Priority Tier GRI Alignment SDG Mapping
E
1. Energy & Emissions
Critical GRI 302, 305
SDG 7 SDG 9 SDG 11 SDG 12 SDG 13 SDG 17
2. Circular Economy &
Waste Management
Critical GRI 306
SDG 8 SDG 9 SDG 12 SDG 13 SDG 15
3. Water & Wastewater
Management
Critical GRI 303
SDG 6 SDG 8 SDG 12 SDG 13
4. Biodiversity
Significant GRI 304
SDG 6 SDG 11 SDG 13 SDG 14 SDG 15
S
5. Human Capital Management
Significant GRI 402,
404, 407
SDG 3 SDG 4 SDG 5 SDG 8 SDG 10
6. Occupational Health & Safety
Significant GRI 403
SDG 3 SDG 8
7. Community Relations
Significant GRI 413
SDG 1 SDG 2 SDG 3 SDG 4 SDG 6 SDG 8 SDG 10 SDG 11 SDG 13 SDG 17
8. Diversity, Equity & Inclusion
Significant GRI 405, 406
SDG 5 SDG 10
9. Human Rights
Significant GRI 408, 409
SDG 5 SDG 8 SDG 10 SDG 16
G
10. Product Stewardship
& Innovation
Critical GRI 301
SDG 8 SDG 9 SDG 12 SDG 13 SDG 17
11. Supply Chain Management
Critical GRI 307,
308, 414
SDG 8 SDG 12 SDG 13 SDG 17
12. Corporate Governance
& Business Ethics
Critical (Tier I) GRI 205, 206
SDG 8 SDG 16 SDG 17
13. Risk Management
Critical (Tier I) -
SDG 8 SDG 16
14. Data Privacy and Security
Important GRI 418
SDG 16 SDG 17
15. Data Management
& Disclosures
Significant -
SDG 16 SDG 17

Strategic Action on Critical Material Topics

For the topics classified as Critical, JSL has defined clear business cases, strategic responses, and measurable targets. Selected topics are outlined below:

Energy & Emissions

Stainless steel manufacturing involves high energy consumption across melting and processing operations, leading to significant emissions exposure. Evolving regulatory requirements and stakeholder expectations are increasing the importance of transitioning toward lower-carbon operations to manage compliance and long-term business risks.

The Company is pursuing a structured decarbonisation pathway that includes improving operational energy efficiency, expanding the share of cleaner energy sources, and collaborating with partners to enable access to low-carbon power solutions.

Achieve Net Zero emissions by 2050

Circular Economy & Waste Management

Efficient utilisation of raw materials and minimisation of waste are critical for improving resource productivity and reducing environmental impact in steel production processes.

The Company is enhancing circularity by increasing the use of recycled inputs and strengthening recycling mechanisms for by-products, with a focus on both internal reuse and external value recovery opportunities.

Achieve ‘Zero Waste to Landfill’ and a certification thereto from a third-party accreditor by 2030

Water & Wastewater Management

Steel manufacturing operations require significant water inputs for cooling, processing, and auxiliary activities, making efficient water use and responsible discharge management critical. Growing regulatory requirements and increasing water stress in certain regions further highlight the need for sustainable water stewardship practices.

JSL is reinforcing its water management approach by improving operational efficiency, increasing water recycling and reuse, and deploying advanced treatment systems to enhance wastewater quality. The Company is also working toward reducing freshwater dependency and promoting responsible water use across its facilities.

Achieve water neutrality by 2033

Materiality Metrics for External Stakeholders

Material Issue description

Efficient use of resources and responsible waste management are important for reducing environmental impacts and conserving natural resources. Jindal Stainless promotes circular economy principles through the use of recycled raw materials, recovery of metals from manufacturing by-products, recycling and beneficial utilisation of waste streams, and diversion of waste from landfill.

Water is a shared resource that is critical for communities, ecosystems, and industrial operations. Jindal Stainless relies on surface water sources for its manufacturing facilities and therefore prioritises responsible water stewardship to reduce pressure on local water resources and support long-term water security. The Company has set a target to achieve water neutrality by 2033 and is implementing water conservation, recycling, reuse, and replenishment initiatives across its operations.

Output metric

Waste diverted from landfill (%)

Water recycled and reused (%)

Impact valuation

Impact valuation conducted: Yes

Reduced environmental impacts associated with landfill disposal through waste diversion, recycling, reuse, recovery, and beneficial utilisation of process byproducts.

Impact valuation conducted: Yes

Enhanced water security for communities and ecosystems through reduced freshwater withdrawals, and increased recycling and reuse of water across manufacturing operations.

Impact Metric

99.99% waste diverted from landfill (Hisar facility).

100% internal water recycling under the Zero Liquid Discharge (ZLD) framework at the Hisar and Jajpur manufacturing facilities.

Issues Material to JSL’s External Stakeholders

Energy & Emissions

Operations

Environment/ Economy

Negative Impact

JSL operates in an energy-intensive sector with emissions from core manufacturing processes. Increasing regulatory requirements (e.g., carbon pricing, CBAM) and evolving customer and investor expectations are driving the need to reduce carbon intensity and transition to cleaner energy sources.

Circular Economy & Waste Management

Operations

Environment

Positive Impact

Stainless steel production supports circularity due to high recyclability and long product life. JSL focuses on maximising scrap utilisation and recovering by-products to reduce resource dependence and enhance operational efficiency.