Bharat Forge · Annual Report · FY 2025-26 Download Full Report

Sustainability is the bedrock of enduring value creation at Bharat Forge. Our approach is guided by three interconnected pillars. ‘Growth that Gives Back’ aligns our expansion with responsibility, ensuring that progress uplifts communities and safeguards vital resources. ‘Innovation with Purpose’ embeds ESG thinking into our products, processes and engineering capabilities, turning responsible practices into a competitive advantage. ‘Safer Systems, Smaller Footprint’ reinforces our focus on decarbonization, risk mitigation and the highest standards of safety, as we build resilient systems for the future.

Sustainability framework

Our sustainability framework ensures identifying and addressing material risks and opportunities influencing value creation for the stakeholders. Anchored in a top-down approach, it embeds sustainability values from leadership priorities to frontline execution and integrates ESG considerations across our operations. It also guides our progression towards global best practices, supports innovative solutions and shapes the initiatives and investments that advance our ambition to become a sustainability leader within the manufacturing sector.

We embedded ESG into our operations through:

  • A measurable decarbonization roadmap
  • ESG Committee oversight led by Executive-cum-Joint Managing Director
  • Function-wide ESG governance and accountability

Strengthening ESG performance and disclosure

We have aligned internal practices with external ESG rating frameworks to improve transparency, disclosure quality and external assessments across environmental, social and governance themes. A Board-level ESG Committee steers our strategy and roadmap, while a structured gap analysis, supported by materiality assessment, defines short- and long-term focus areas. We have also published GRI-aligned Sustainability Reports for fourth consecutive years, with third-party assurance for the latest three editions, supported by stronger climate disclosures, supplier assessments and policy enhancements.

ESG ratings

S&P Global ESG rating 2021 to 2025: 18, 41, 46, 46, 52
Sustainalytics ESG risk rating 2021 to 2025: 29.4, 23.5, 21.7, 20.2, 26.05
MSCI ESG rating 2021 to 2025: CCC, CCC, B, B, BB
CDP rating 2021 to 2025: F, B-, B-, B+, B+
EcoVadis score 2021 to 2025: 36, 49, 52, 56, 64 Bronze Medal

ESG goals aligned to UN SDGs*

Environmental pillar

Environmental

Resource efficiency

  • 80% Renewable Energy by 2030
  • 60% reduction in Energy Intensity by 2030
  • 50% Secondary RM by 2030
  • 40% reduction in Water Intensity by 2030
  • 60% Recycled water by 2030
  • Water Positive by 2030

Emissions & Waste management

  • 54.6% lesser Scope 1 & 2 emissions by 2033
  • 54.6% lesser Scope 3 emissions by 2033
  • 50% reduction in Waste Intensity by 2030
  • Zero Waste to Landfill by 2030
  • Carbon Neutral by 2045
UN SDGs linked: 6, 7, 12, 13, 15

Contribution to UN SDGs

  • Progressing towards a low-carbon economy through cleaner fuels, energy efficiency and higher renewable energy share
  • Completed sustenance audits for ISO 50001:2018, ISO 14001:2015 and ISO 45001:2018 across all sites
  • Estimated operational GHG emissions and identified further reduction actions
  • Improving resource efficiency through reduce, recycle and reuse principles, including higher use of secondary raw materials
  • Monitoring and controlling water consumption through existing water management systems to reduce freshwater use, increase recycled water use and move towards water positivity
  • Reducing waste generation, ensuring effective disposal and advancing towards Zero Waste to Landfill
Social pillar

Social

Human capital management

  • Employee training hours – 48hrs/year by 2030
  • 75% reduction in LTIFR by 2030
  • 8% women in managerial & Leadership positions by 2030

Engaging business partners

  • Sustainability Index >75% by all Critical suppliers by 2030
  • 50% RE use by Top suppliers by 2030
  • PCF for mainstream products by 2030
  • Active engagement with customers on ESG aspects by 2030

Giving back to communities

  • Plant 1 million Trees by 2030
  • 100 Green Villages by 2030
  • Education & Skill development by 2030
UN SDGs linked: 1, 2, 3, 4, 5, 6, 8, 10, 17

Contribution to UN SDGs

  • Deploying best practices in employee health and safety to reduce workplace incidents
  • Training employees on emerging technologies and advanced engineering concepts
  • Conducting human rights due diligence across operations to ensure compliance
  • Assessing supplier sustainability through audits, the Supplier Sustainability Index and site assessments of hazardous waste recyclers
  • Sustaining customer engagement through digital platforms and team visits to support new product development
  • Driving holistic development across 130 villages through water availability, livelihood, healthcare, education and infrastructure initiatives, with six villages externally certified as ‘Green Villages’
  • Undertaking education and skill development programs for youth, women and farmers
Governance pillar

Governance

Good governance

  • 100% regulatory compliance
  • Effective data privacy management

Compliance to ethics

  • 100% employees trained on business ethics
  • Ensure compliance to human rights requirements
UN SDGs linked: 8, 9, 11, 17

Contribution to UN SDGs

  • Ensuring ethical conduct and regulatory compliance, with a continued track record of zero instances of non-compliance
  • Strengthening governance and accountability through third-party assured BRSR, Sustainability Reports and Integrated Annual Reports
  • Driving technology-led innovation through lightweight automobile components, e-mobility solutions and Industry 4.0 applications to improve fuel efficiency, cleaner mobility and plant productivity
  • Implementing robust cybersecurity practices to protect customer data and business assets
  • Supporting job creation and economic growth across our operational regions
  • Conducting materiality assessments to review ESG issues and update the ESG roadmap

*FY2020 is considered as baseline year