ACC Limited Earns Top CARE ESG 1+ Rating for Strong Governance

ACC Limited announced that it has been awarded the highest ESG rating, "Care EDGE – ESG 1+", by CARE ESG Ratings Limited on March 24, 2026. This top designation highlights the company's leadership in managing environmental, social, and governance (ESG) risks through robust disclosures, strong policies, and excellent performance.

Receiving a top-tier ESG rating like "ESG 1+" is vital for attracting institutional investors and proving a company's dedication to sustainable business. It indicates strong governance, proactive risk management, and a forward-looking strategy that can boost stakeholder confidence and long-term value.

ACC's Long-Term Sustainability Efforts

ACC's commitment to environmental stewardship dates back to 1966 with the installation of pollution control equipment. The company actively promotes circular economy principles by using waste-derived resources and implementing water and plastic negativity initiatives. ACC has set ambitious targets, including achieving Net Zero by 2050 with near-term goals validated by the Science Based Targets initiative (SBTi). This latest "Care EDGE – ESG 1+" rating builds on prior recognition, including an 'A-' Leadership Score in the 2023 CDP Climate Assessment and a score of 65 in the 'Aspiring' category from NSE Sustainability Ratings for FY2025.

Key Implications and Future Focus

This top ESG rating is expected to enhance ACC's appeal to ESG-focused funds, strengthen its corporate reputation for sustainability, and potentially improve access to capital and financing. Investors and analysts will be watching ACC's continued performance against its ESG targets and disclosures, its new initiatives, and its ongoing efforts in carbon emission reduction and circular economy practices.

Maintaining Leadership

While the rating is a significant achievement, maintaining this 'leadership' status requires continuous improvement. ACC must adapt to evolving ESG standards and regulatory frameworks within the construction materials sector.

Peer Comparison

ACC's "ESG 1+" rating places it at the pinnacle, similar to Shree Cement's "CARE ESG 1" rating. In contrast, UltraTech Cement received an 'Adequate' rating of 59 from Crisil for FY2024-25. Ambuja Cements has shown strong sustainability metrics like 12x water positivity and 11x plastic negativity. The cement industry as a whole is prioritizing ESG, with companies like UltraTech being recognized in global sustainability indices.

Key ESG Performance Metrics

ACC's sustainability efforts are supported by specific performance metrics:

• ACC is 1x water-positive and 7x plastic-negative, as of FY 2023-24.
• ACC used 12.7 million tonnes of waste-derived resources in FY 2023-24.
• ACC has a Net Zero commitment by 2050 with near-term (2030) targets validated by SBTi.