Hindustan Zinc submitted its Climate Action Report for FY26 to stock exchanges on October 7, 2026. The report outlines the company's strategy to reduce Scope 1 and 2 emissions by 50% from FY20 baseline levels by 2030.

The filing highlights significant progress in renewable energy integration, with total green power consumption reaching 892 million units (MU) in FY26. This shift contributed to an estimated 0.83 million tCO2e reduction in emissions. The Pantnagar Metal Plant continued to operate on 100% renewable power sourcing throughout the year.

Emissions and Renewable Energy Metrics

The company reported combined Scope 1 and Scope 2 emissions of 5.02 million tCO2e for FY26. Scope 3 emissions stood at 1.47 million tCO2e. The data indicates that while absolute emissions have increased due to operational expansion, the intensity of emissions is being managed through aggressive renewable procurement.

Decarbonisation Pathway and Investments

Hindustan Zinc's decarbonisation roadmap relies heavily on shifting from the State Transmission Utility model to the Central Transmission Utility model to reduce transmission losses. The company plans to add 990 MW of battery energy storage capacity to support green power demand for both existing and expanded capacity.

Key investments include:

• A US$1 billion commitment toward fleet electrification, targeting 75% fleet electrification by 2035.
• Approximately ₹1,114.5 crore invested in renewable energy infrastructure, including the 530 MW renewable energy programme.
• Deployment of 180 LNG vehicles and 52 electric vehicles in the logistics fleet.

Product Innovation and Market Positioning

The report emphasizes EcoZen, Asia's first low-carbon zinc product, which maintains a carbon footprint of less than 1 tCO2e per tonne of zinc. This represents an approximate 75% reduction compared to the global average. In FY26, Hindustan Zinc sold 2,935 tonnes of EcoZen, helping downstream customers avoid approximately 14,505 tonnes of CO2e emissions.

What the Numbers Show

A divergence exists between the company's growth ambitions and its near-term emissions trajectory. Hindustan Zinc plans to expand metal capacity to 2 million tonnes by 2030. This expansion increases absolute energy demand, making the 50% reduction target for Scope 1 and 2 emissions challenging despite the rapid uptake of renewable power. The reliance on battery storage and grid efficiency improvements becomes critical to offsetting the emissions impact of this volume growth.

Governance and Assurance

The report was externally assured by S.R. Batliboi & Co LLP under ISAE 3000 (Revised). Governance oversight is managed through the Board Sustainability & ESG Committee, chaired by Priya Agarwal Hebbar, which monitors progress against sustainability-linked KPIs embedded in executive remuneration.

Hindustan Zinc Limited announced record refined metal production of 264 thousand tonnes for the second quarter ended September 30, 2026, reflecting a 7% year-on-year increase. The company also reported a significant 20% jump in silver production to 173 tonnes, underscoring robust operational efficiency across its mining and smelting operations.

The filing, submitted to stock exchanges on October 3, 2026, highlights that the growth in refined metal output was driven by additional capacity unlocked from debottlenecking projects at Chanderiya and Dariba, alongside the commissioning of a 160 ktpa roaster at Debari. These infrastructure enhancements, combined with consistent plant availability, enabled the company to surpass previous quarterly benchmarks despite market fluctuations.

Production metrics overview

The following table details the key production figures for the second quarter and first half of FY27 compared to the corresponding periods in FY26:

Note: Refined Zinc figures include contributions from Hindustan Zinc Alloys, a wholly owned subsidiary.

Operational drivers and trends

The company’s mined metal production reached 271 kt in Q2FY27, up 5% YoY, primarily driven by higher ore extraction rates. This upstream strength translated into downstream gains, with saleable metal production rising 7% to 264 kt. The refined zinc segment specifically grew 5% to 212 kt, while refined lead saw a notable 14% increase to 51 kt, indicating improved processing efficiency in lead-specific units.

Silver production emerged as a standout performer, climbing 20% YoY to 173 tonnes (5.6 million ounces). This surge aligns with the company’s production plan and contributes significantly to revenue diversification. In the first half of FY27, silver output totaled 321 tonnes, representing a 10% year-on-year growth. Additionally, wind power generation increased 17% YoY to 155 million units in Q2, supported by favorable wind velocity and weather patterns, reinforcing the company’s sustainability credentials.

What the numbers show

A divergence in growth rates between base metals and precious metals highlights the portfolio's resilience. While refined zinc grew 5% and refined lead 14%, silver production expanded 20%. This suggests that silver recovery rates or associated ore grades may have outperformed zinc and lead volumes during the quarter. Furthermore, the 7% growth in saleable metal outpaced the 5% growth in mined metal, implying improved conversion efficiency or inventory utilization from prior periods, as the gap between extracted ore and final saleable product narrowed relative to volume increases.