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TRANSFORMING TRANSFORMING TRANSFORMING
SUSTAINABILITY REPORT FY 2023 COMMUNITIES THE PLANET THE WORKPLACE

Vedanta Sustainability Assurance Process (VSAP)

Vedanta Sustainability Assurance Process or Executive compensation linked to ESG
VSAP, is a tool used by Vedanta to assess the
compliance of all our business units with the Compensation Topics Brief Summary Impact Details
Vedanta Sustainability Framework. It plays a
crucial role in ensuring that sustainability Scorecard-based KPIs Emphasis on objective and Annual performance rating and ESG is a mandatory KPI for all employees including
considerations are effectively integrated into transparent KPIs fixed pay senior leaders – to foster a culture of safety/sustainability
all decision-making processes and actions
across the organization, and aims at driving
continuous improvement and accountability ESG component in Safety/sustainability Annual bonus pay-out A minimum score of 70% is needed in VSAP audit
in sustainability practices. annual performance scorecards have a 15% as a threshold for pay-out under this component.
weightage VSAP Audit has
bonus
extensive factors in place – Assurance Models
We consistently foster a culture that upholds a total of 70 guidance (Compliance, New Projects, Process Safety) etc.
factors
world-class standards in safety, Safety Focus Works
environmental stewardship, and sustainability. (Work at Height, Confined Space, etc)

To further embed this culture, ESG criteria
have been made a mandatory KPI for Fatalities are a negative 10% reduction on one fatality – leading to potential
leadership during annual performance Integration of fatalities multiplier on the overall Annual bonus pay-out 25% reduction overall in case of multiple fatalities
into annual bonus
appraisals and increment cycles. We follow a performance (not just the
formal scorecard-based performance ESG component)
management approach across the entire
organization, providing a unified experience
for all full-time employees. Focus on long-term Integration of ESG into Long-term incentive payout ‘Long term strategic sustainable’ objectives have a
sustenance long-term strategic KPIs weightage of 1/3
Executives driving the ESG agenda for the
Group carry significant weightage in these ESG framework in LTIP Carbon footprint and Long-term incentive payout Carbon footprint
evaluations, with the compensation structure plans fatalities integrated into 15% weightage in business performance
comprising elements such as fixed pay, long-term incentive plan (40% of total weightage) in scheme
benefits, annual bonuses, the Long-Term Fatalities
Incentive Plan (LTIP), and components that 10% additional pay-out kicker in case of no
consider holistic employee growth and fatalities during the vesting period
well-being.

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