Gray to Green Transition – The Sustainability Journey of Dalmia Cement

The primary objective of this case is to introduce the concepts of sustainability and its operationalization in practice. To achieve this objective, the case makes use of a manufacturing firm in an emerging market, from one of the most polluting industries, namely, cement production. With the help of this example, the case demonstrates (i) the criticality of setting aggressive sustainability targets, (ii) role of top management in setting a long-term sustainability strategy to achieve these targets, (iii) creating a culture of sustainability, and finally, (iv) operationalizing the strategy on a day-to-day basis. The case also provides detailed description of carbon pricing and its role in promotion and adoption of various green technologies. The case narrates the sustainability journey of Dalmia Cement, which is part of a well-respected business group in India. The case begins with a detailed description of the cement production process, which along with the main raw material input (limestone) is the major contributor to the carbon emissions. The efforts of senior management towards creating a sustainability culture and instilling the appropriate values are discussed next. The case summarizes the various commitments made by the management towards environmental and social sustainability and the respective initiatives adopted to fulfil these commitments. The case finally ends with a dilemma regarding how the company will fulfil the pledge that their CEO had made at the Global Climate Action Summit-2018, that they would become Carbon Negative by 2040.