Bharat Heavy Electricals Puts Sustainability at Core, Reports on ESG and Climate Initiatives for FY 2025-26

Bharat Heavy Electricals Puts Sustainability at Core, Reports on ESG and Climate Initiatives for FY 2025-26​

Bharat Heavy Electricals Limited (BHEL), a Government of India Undertaking, has released its Business Responsibility and Sustainability Report (BRSR) detailing its environmental stewardship, social commitments, and operational scope for the financial year 2025-26. The report underscores BHEL's commitment to sustainability through its transformative initiative, HARIT BHEL, which aims for Net Zero emissions by 2047.

The comprehensive reporting was assured by S R Asia for the BRSR Core and covers all aspects of the company’s material responsibilities.

Operational Scope and Business Segments​

BHEL is a nationally significant entity with operations spanning 45 locations, including 16 plants and 29 offices. The company serves both domestic and international markets, operating in 94 countries internationally.

The core business activities of BHEL are diversified across manufacturing, electrical equipment production, and specialized construction activities, accounting for an estimated 57%, 27%, and 16% of turnover, respectively.

BHEL’s workforce is substantial, comprising a total of 50,024 employees and 35,081 workers as of the end of FY 2025-26. The company maintains robust systems for employee welfare and skill development across both staff and workers.

Environmental Stewardship and Climate Action​

A major focus of BHEL’s sustainability strategy is climate change mitigation and resource efficiency. The company has established a substantial solar power capacity, totaling nearly 43.25 MWp across its facilities, including rooftop installations. This renewable energy generation resulted in the avoidance of 31,308 MT of carbon emissions during FY 2025-26 alone.

In line with its environmental commitments:

• Energy Consumption: Total energy consumed for the financial year stood at 2,814,172.00 Giga Joules, translating to an energy intensity of 8.33 kilo Joule per rupee of turnover.
• Water Management: The company withdrew a total volume of water amounting to 10,164,006.00 kilolitres. Crucially, 11 manufacturing units have successfully achieved zero liquid discharge status outside their premises, with treated effluent and sewage being reused within the campuses for horticultural purposes.
• Waste Management: Total waste generated was reported at 56,870.63 metric tonnes. The organization demonstrated a strong commitment to resource recovery, managing to reuse or recycle 6,460.43 metric tonnes of various wastes.

Labor Welfare and Governance​

BHEL maintains rigorous standards regarding the well-being and rights of its employees and workers. Investments in employee welfare were reported at D 1,90,43,00,000 in FY 2025-26, representing 0.56% of the company's total revenue (D 3,37,82,18,00,000).

Key labor indicators highlight:

• Training: A significant portion of employees and workers received training related to safety and skill upgradation. For permanent employees in FY 2025-26, the proportion trained in skills upgradation stood at 63.37%.
• Commitment: The company has a formal grievance redressal mechanism that provides for three-tier resolution across all employee and worker categories.
• Human Rights: BHEL ensures human rights requirements are integrated into business agreements, with assessments covering 100% of value chain partners regarding child labor, forced labour, sexual harassment, discrimination at the workplace, and wages.

Stakeholder Engagement and Ethical Conduct​

The company actively manages its relationships across all stakeholder groups, including shareholders, suppliers, customers, and local communities. For instance, BHEL has been committed to supporting Micro and Small Enterprises (MSEs), with 54.8% of procurement for Goods and Services in FY 2025-26 being sourced from MSEs.

The organization enforces strict ethical standards through a Whistle Blower Policy and internal conduct rules, maintaining zero complaints related to the conflict of interest of Directors or KMPs during the reporting period across both financial years. Furthermore, BHEL provides training on human rights issues, covering 10341 employees and workers in FY 2025-26.

BHEL is committed to continuous improvement, utilizing internal audits and external assessments to reinforce its policies and practices across all operating units.

BHEL Stock Price Movement​

Bharat Heavy Electricals Limited (BHEL) shares gained 3.64% in the market, closing today at ₹395.25 after a strong performance. The stock saw a gain of ₹13.90 and closed within its trading range of ₹385.6 to ₹395.8, with over 11.89 million shares traded.