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TRANSFORMING TRANSFORMING TRANSFORMING
SUSTAINABILITY REPORT FY 2023
There are several Group-level Management
Committees (ManComs) in place to address
specific areas of focus. They include the
Commercial ManCom, HSES & ESG ManComs,
HR ManCom, Finance ManCom, and CSR
ManCom. These committees are responsible
for identifying risks in their respective domains
and implementing appropriate measures to
mitigate them.
The Management Assurance Services (MAS)
plays a crucial role in ensuring the
implementation of policies and processes
aligned with management's performance goals
and risk tolerances. They serve as a vital element
of the internal control process, providing the
Board with necessary assurance. This involves
systematic assessment of measures, tools, and
processes used to identify, evaluate, control,
monitor, and report on risks. The Audit
Committee regularly evaluates the scope,
authority, and resources of the Management
Assurance Services (MAS). As a result, an
internal audit plan is developed with a risk-based
approach, considering the risk matrix, insights
from senior management, business teams, and
the Audit Committee. Past audit experience,
financial analysis, and the prevailing economic
and business environment are considered during
the planning stage.
ESG Risks
The Board, with support from the management,
conducts periodic and robust assessments of
principal risks and uncertainties through an
annual materiality assessment, which are then
integrated into Vedanta’s enterprise risk
management framework. These risks can be
economical, environmental, geopolitical, societal,
or technological depending on their long-term
impact on Vedanta’s business.
COMMUNITIES THE PLANET THE WORKPLACE
Emerging Risks
Emerging Risk Prolonged Global economic recession Resource Nationalism
due to climate change
Category Economic Geopolitical
Description Economies are very sensitive to prolonged shocks such as supply chain disruptions, war & The geographic distribution of numerous metals and minerals has
conflict, and pandemics among other factors. Historically, these shocks have occurred in ensured a degree of mutual interdependence. For example, Brazil
isolation. has scaled lithium, rare earth elements and nickel production, but
has remained dependent on others for refining and on neighbours
As climate change becomes more pronounced and more frequent, we anticipate that climate for other resources such as copper and cobalt.
change impacts combined with other shocks can significantly hamper global economic
conditions. Yet resource nationalism has also driven cracks with disputes
arising first around the application of state aid to boost domestic
For example, economic downturn in developed markets such as China have impacted global mining and processing industries. The expanding use of the
demand for metals. Combined with the impacts of frequent extreme weather events such as
national security exemption at the WTO has also increasingly
flooding and drought, the damage to the economy is in billions of dollars, which may send the paralysed multilateral trade mechanisms, rendering them
global economy into a prolonged recession. ineffective in addressing geopolitical confrontation in a world
where local resilience and security is prioritized over comparative
The collective impact of these events can result in a decline in demand for our products & advantage and efficiency.
impact the overall financial performance of the company.
Export constraints on minerals have placed upwards pressure on
broader international governance and enforcement mechanisms
that oversee new exploration zones – including those relating to
mining.
Impact A prolonged global recession due to climate change, combined with other macro-economic State intervention has become more common and stringent, with
factors, will impact the demand of our products as well as the LME prices. This will significantly government planning directly and indirectly allocating available
resources for prioritized industries. Also, in many cases due to
impact the revenue as well as the cost of raw materials procured.
factual or perceived shortages, states quickly and regularly
exercise control over key resources to protect their own
population.
For example, state intervention could impact aspects related to
access to minerals, taxation rates, profit-sharing agreements, etc,
with a resultant impact on the company's revenue sources.
Mitigating Key mitigation measures include: Key interventions include:
actions a) Identifying alternative markets for our products. a) Diversification of businesses averse from resource
b) Assessing supply chain impact and dependencies. nationalism impacts
b) Public Advocacy with governments and industry associations.
c) Establishing long-term agreements with our customers as well as suppliers. c) Ensuring stakeholder engagement at every stage of the
d) Diversification of products and markets. project lifecycle
d) Strict vigilance on compliance to national regulations
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