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TRANSFORMING TRANSFORMING TRANSFORMING
SUSTAINABILITY REPORT FY 2023 COMMUNITIES THE PLANET THE WORKPLACE
Climate-related Risk Assessment Internal carbon pricing aids the
transition to decarbonisation
We carried out an in-depth climate risk assessment
and scenario analysis to comprehensively understand At Vedanta, we are using Internal Carbon
and analyse the risks and opportunities posed by Price (ICP) to future-proof our business
climate change to our business. The findings of these against potential ad hoc cost escalations. By
studies helped to make a roadmap to achieve Net embedding climate risks into our investment
Zero target by 2050. decisions and proactively directing our focus
• Physical risk assessment: As part of the physical towards clean energy technologies,
risk assessment, acute risks arising out of processes and ecosystems, we are ensuring
increasing severity of extreme weather events and that our preparedness extends across our
chronic risks resulting from longer-term changes in businesses and countries of operation. ICP, is
climate patterns were studied for 55 business a voluntary price that is linked to every unit of
locations. We studied the historical trends and CO emissions. From FY 2023 onwards, we
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future projections of various climate hazards such have set the ICP at $15/tCO e.
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as change in temperature, change in precipitation,
floods, droughts, and cyclones to understand how The ICP mechanism is applicable across all
the changing climate may impact our different our BUs and is used for capex evaluations
business locations. Two climate change scenarios that fulfil the following criteria:
RCP 8.5 and RCP 4.5 were used for two time periods • All capital expenditure (excluding admin,
2020 to 2039 and 2040 to 2059 extending over security, IT, digital and pre-operative
Vedanta’s short, medium and long-time frames.
expenses) > INR 50 million made by
• Transition risk assessment: For our transition risk Vedanta and its operating subsidiaries.
assessment, we used the Network for Greening the • Any project, with GHG emissions > 500,000
Financial System (NGFS) Scenarios developed in MT, irrespective of the cost
partnership with an academic consortium from the
Potsdam Institute for Climate Impact Research (PIK), • Any exemption from this policy has to be
International Institute for Applied Systems Analysis pre-approved by Group Energy & Carbon
Community of Practice Forum
(IIASA), University of Maryland (UMD), Climate
Analytics (CA) and Eidgenössische Technische For a detailed report on climate related risk
Hochschule Zürich (ETH).
assessment please refer to our TCFD Report
For more information, please refer to our TCFD report
2023.
https://www.vedantalimited.com/SiteAssets/Images/
TCFD-Report-FY23.pdf
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