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TRANSFORMING TRANSFORMING TRANSFORMING
SUSTAINABILITY REPORT FY 2023
Climate Governance
Climate change is considered a crucial
governance issue at the Board level, and
it is regularly discussed in various
contexts such as strategy discussions,
business performance, investment
decisions, and the assessment of
scenario triggers and signposts . The
Board members bring diverse expertise
from sectors including resources, energy,
finance, government, and public policy.
At Vedanta, we have implemented a
comprehensive governance framework
to effectively integrate climate change
considerations into our business
operations and strategic planning.
The Board assumes responsibility for
overseeing all sustainability matters,
which includes the climate change
agenda.
Aligning with the global call for climate
action and transparency, we have taken
the bold step of integrating climate
considerations into our long-term
strategies and decision-making
processes. Our management is firmly
committed to stewarding a low-carbon
growth path for our Company and
oversees the systematic implementation
of our climate-focused strategies. Our
ESG Board Committee meets twice a
year to discuss climate issues and their
implementation. Climate issues are also
on the agenda of the Board of Directors
and come up for annual review and
discussion.
Our climate change strategy and
roadmap follows the guidelines set by
the Paris Agreement to limit global
temperature rise to well below 2°C,
ideally within 1.5°C. The strategy
revolves around:
4-stage GHG Reduction Roadmap aligned
with 2⁰ C scenario.
From 2021 to 2025, we plan to reduce
GHG intensity (TCO e/MT) of our metal
2
businesses by 20%, with the cumulative
change achieved being assessed in FY
2025, for a FY 2021 baseline.
From 2021 to 2030, we will create
renewable energy capacity that can
ensure 2.5 GW of Round-The-Clock
(RTC) equivalent renewable power
power for our facilities by FY 2030.
Between 2026 to 2030, we will push
towards decarbonisation to actually start
yielding results. We anticipate a reduction
in our absolute GHG emissions in line with
our target of 25% absolute GHG
emissions reduction by FY 2030. This will
be against a FY 2021 baseline.
Beyond 2030, we will deploy emerging
technologies at scale and expand our
renewable energy capacities to become a
net-zero carbon business by FY 2050.
COMMUNITIES THE PLANET THE WORKPLACE
We are fully committed to becoming a "Net Zero Carbon" organization by 2050, or Net GHG emissions of
potentially even sooner. To achieve this goal, the Company has identified four key 3.31 MTCO e against
2
levers that will help us to reduce GHG emissions and meet our 2030 emission FY 2021 baseline and
targets. These levers will pivot around renewable energy deployment, switching to 14.73 MTCO e against
2
low-carbon or zero-carbon fuels, improving energy and process efficiencies, and 2012 baseline
purchasing carbon offsets for residual emissions.
Levers for achieving decarbonization
Lever 1: Increasing Renewable Energy Lever 3: Improving the energy and process efficiency
of our operations
• By end of FY 2023, power delivery agreements
(PDAs) for 788 MW of renewable energy have • Several energy efficiency projects completed:
been finalized and an additional 50 MW has
been approved by the Board. (i) R&M of 1 unit of 600 MW at VAL Jharsuguda Savings potential
370,000 TCO e/year
• Resultant avoidance of 6.6 million tonnes of 2
CO e per year (ii) VAL Lanjigarh Evaporation - 1 Calendria 1 & 2 tubes
replacement Savings potential 18,000 TCO e/year
2
2
• 32% of the target of 2,500 MW RE-RTC power (iii) VAL Lanjigarh Boiler 2 junior APH replacement Savings
by 2030, aligned potential 16,000 TCO e/year
2
(iv) ESL Fuel crushing index improvement Savings potential
31,000 TCO e/year
2
Lever 2: Switch to low-carbon/zero- (v) ESL LD gas recovery project completion Savings potential
carbon fuels 18,000 TCO e/year
2
• Target of 5% coal substitution with biomass in Several projects are planned with the target of bringing energy
efficiencies to the aluminium sector. These include:
our thermal power plants
(i) In FY 2023, 4x YoY growth in biomass usage, (i) 100% graphitisation with copper inserted collected bar Savings
potential: 1.1 MnTCO e/year
2
reaching approx 78,000 MT (ii) Vedanta pot controller implementation Savings potential: 0.2
• Fleet electrification for mining fleets and MnTCO e
2
Light-Motor-Vehicles: (iii) Commissioning of TRT and BPRT at ESL Savings potential:
(i) HZL launched its first BEV for working 82,000 TCO e/year
2
underground and first (iv) Natural gas usage at Lanjigarh alumina refinery Savings
LNG-powered 55-tonne heavy-duty trucks
potential: 1,20,000 TCO e/year
2
(ii) Jharsuguda facility is running 27 electric
forklifts
• Biofuel trials underway at BALCO and Purchase of carbon offsets for residual
VAL-Jharsuguda and will soon start at Sterlite emissions Lever 4
Copper and Sesa VAB
We will consider this option for hard-to-abate GHG emissions at the
end of our target period, once our mitigation drives are over.
We aim to spend US$ 5 billion over the next decade to expedite our transition towards Net Zero operations.
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