Page 58 - 1-37

TRANSFORMING TRANSFORMING TRANSFORMING
SUSTAINABILITY REPORT FY 2023
Material Issue Business Case Impact (Cost,
Risk, Revenue)
Climate Change & Transitioning to a lower-carbon economy requires extensive changes in policies, regulations, Risk
Decarbonization technologies, and markets to address mitigation and adaptation requirements related to climate
change. Depending on these changes, transition risks may pose varying levels of financial and
reputational risks to the Company. Increasing regulatory change and investor pressures aimed
at limiting or reducing GHG emissions are likely to impact the Company’s operations due to
increased costs for fossil fuels, levies for emissions exceeding permitted levels, and increased
administrative costs for monitoring and reporting. For instance, the Carbon Border Adjustment
Mechanism will be applicable for our Aluminium as well as Iron & Steel business. The Company
would need to account for the carbon content of its products and potentially pay additional
taxes for imports into countries implementing CBAM. Also, CBAM could potentially increase the
Company’s risk exposure due to decreased market access.
Workplace Health Maintaining a safe work environment is a top priority for our company. Unsafe conditions lead to Risk We have implemented processes and checks to identify and mitigate hazards. Our employees undergo rigorous
& Safety absences, loss of productive hours as well risk of reputation loss. To ensure the well-being of
our workforce, we prioritize creating a safe workplace that promotes their health and safeguards
their overall well-being. This commitment is fundamental for our organizational growth and the
positive impact we can make on society. In FY 2023, the company reported 13 fatal incidents.
By prioritizing health and safety, we build trust with our employees and other stakeholders. A
strong health and safety record demonstrates our responsibility as an employer and showcases
our caring nature. This enhances our reputation in the industry and positions us as an employer
of choice. Consequently, we can attract and retain talented employees who value their
well-being.
Water Water is a critical input for Vedanta’s operations and has the potential to disrupt operations, to
Management impact productivity of staff as well as to impact revenues and logistics. With operations in both
water-stressed areas and areas prone to flooding, change in water availability is a material risk
for businesses like BALCO, HZL and Cairn Oil and Gas.
There could be water-related stakeholder conflicts, due to which, availability and accessibility of
the water with required quality for our operations and stakeholders will be impacted. These
impacts can result in:
a) Decrease in the capacity utilisation of operation resulting in productivity losses
b) Legal conflicts resulting in loss of credibility and reputation of the Company.
c) Higher financial burdens and increase in specific water cost of product due to high degree of
pre-treatment if quality is the issue and handling, storage issues if availability is the cause of
the conflict.
COMMUNITIES THE PLANET THE WORKPLACE
Business Strategies
Our climate change strategy and roadmap prioritize net-zero emissions by aligning our financial capital allocation
framework and social values with the goals of the Paris Agreement. The roadmap consists of four stages:
a) From 2021 to 2025, we aim to reduce GHG intensity (TCO e/MT) of our metal businesses by 20% compared
to the FY 2021 baseline, with cumulative progress assessed in FY 2025.
2
b) Between 2021 and 2030, our focus is on creating renewable energy capacity. By FY 2030, we aim to establish
enough capacity to provide 2.5 GW of round-the-clock (RTC) renewable power for our facilities.
c) From 2026 to 2030, we expect to achieve a 25% reduction in absolute GHG emissions compared to FY 2021.
This reduction will be measured against the baseline as we actively pursue decarbonization.
d) Beyond 2030, we will intensify the deployment of emerging technologies and expand our renewable energy
capacities. These efforts will propel us towards becoming a net-zero carbon business by FY 2050.
training to understand the risks associated with their work. The Safety Community of Practice oversees the
implementation of these measures throughout our organization.
Our safety framework is comprehensive and includes 17 safety performance standards and 20 health and safety
technical and management standards. To validate our commitment, all our operational facilities and sites have
obtained prestigious certifications such as ISO 45001 and OHSAS 18001.
We have also initiated a Critical Risk Management program aimed at identifying and prioritizing critical risks,
allowing us to focus our efforts on effectively managing and mitigating them. Furthermore, we are currently in the
process of overhauling our safety standards under the VSF initiative, ensuring continuous improvement and
alignment with the best practices in the industry.
Risk Vedanta has comprehensive water management strategy in place at operations to ensure that fair allocation of
water is maintained for key municipal, agricultural and industrial users in the regions where the Company operate
in. Vedanta has undertaken significant initiatives to progress towards becoming water positive:
a) Site-specific roadmaps are being developed, which involve identifying projects both within and outside the
Company’s premises to improve the Company’s water positivity ratio. Four sites have attained water-positive
status (HZL, IOB, Cairn India and BMM).
b) To reduce freshwater usage, the Company is banking on technology deployment across our sites for process
improvement and recycling of wastewater.
c) As part of their integrated watershed management initiatives (IWMI), the Company is creating rainwater
harvesting and groundwater recharging projects for communities to improve freshwater availability.
30