TRANSFORMING ELEMENTS

ELEMENTS OF A

SUSTAINS UAS T A I NBA B L ELE D E V E L O P M E N T R E P O R T FUTURE 2 0 1 6 - 1 7 ABOUT THIS REPORT

Welcome to our ninth Sustainable Development Report, which is prepared based on Global Reporting Initiative (GRI) G4 - ‘in accordance’- Core guidelines and is mapped to the United Nations Global Compact (UNGC) and will align to Sustainable Development Goals (SDGs).

It reports our approach and disclosure towards triple bottom line principles - people, planet and profit over the financial year 2016-17. See page 72 for more information about our reporting.

Visit our interactive online Sustainable Development Report 2016-17 at sd.vedantaresources.com/SustainableDevelopment2016-17 ELEMENTS OF A SUSTAINABLE FUTURE

OVERVIEW 01 Vedanta at a Glance 01 T R A N S F O R M I N G E L E M E N T S From metals that strengthen the From the Chairman's Desk 03 exchequer and boost industrial production, to energy that enlightens homes CEO's Message 05 and powers progress – our products help millions of lives realise their Our Strategy and Approach 07 Roadmap and Progress 09 ambitions and countries to achieve their goals.

TRANSFORMING LIVES From Nand Ghars that facilitate preprimary RESPONSIBLE STEWARDSHIP 12 education to self-help groups that make women financially independent; Governance 13 Safety and Occupational Health 19 from programmes that skill the youth to workshops that educate the farmers - Environment 25 Our social initiatives bring lasting prosperity to communities. 360O Project Management 34

BUILDING STRONG RELATIONSHIPS 36 Stakeholder Engagement 37 Human Rights 38 Neighbourhood Dialogue 41

ADDING AND SHARING VALUE 43 Economic Responsibility 44 Annual Report FY 2016-17 Employees 48 Communities 53

STRATEGIC COMMUNICATION 64 Communicating Constructively 66 Advocacy 70 Awards and Accolades 71

DISCLOSURE & ASSURANCE 72 About this Report Online SD Report FY 2016-17 Assurance Statement External Indices W E I

V VEDANTA R E V

O AT A GLANCE HARM WASTE ZERO DISCHARGE Vedanta Resources is a London Stock Exchange listed, globally diversified natural resources company with interests in Zinc, Lead, Silver, Copper, Iron Ore, Aluminium, Power and Oil & Gas. Our exploration portfolio from all the four continents that we operate in, follows a history of consistent geological discovery, sustainable growth, long-term value creation and improved best-in-class operations.

Our focus on sustainable development is reinforced through building strong, engaging and beneficial partnerships with all our stakeholders.

ONE VISION. ONE VEDANTA H S E C H A R T E R

We will fulfill our duty to protect the safety and welfare of our people and plan to achieve our health, safety and environment goal of zero harm to become the best performer in the resources industry by:

Implementing world class standards that deliver our legal obligations and company policies G R O U P S T R U C T U R E Managing risk in all forms by applying controls and testing OUR CORE VALUES OUR CORE PURPOSE their effectiveness 64.9%** Trust | Entrepreneurship Vedanta is a globally diversified natural resources company with low-cost operations. 100% Zinc India Setting priorities and Innovation | Excellence We empower our people to drive excellence and innovation to create value for our stakeholders. HZL Integrity | Respect | Care We demonstrate world-class standards of governance, safety, sustainability and social responsibility. commitments and measuring, AustralianMines Copper monitoring and reporting ANTA LTD. (50.1% performance VED )

Bharat Aluminium Maintaining an open dialogue

(BALCO) Our key operations include with our business partners and 51%* stakeholders Zinc-Lead-Silver Oil & Gas Copper Power 100% VEDANTA 1 Debari smelter 1 Rajasthan block 1 Silvassa refinery 1 MEL power plant (100 MW) Applying this discipline every MALCO Power RESOURCES 2 Chanderiya smelters 2 Ravva (PKGM-1) block 2 Tuticorin smelter 2 SEL day in every aspect of our PLC 3 Rampura-Agucha mine 3 Cambay (CB/052) block 3 Mt Lyell mine, Australia** 3 Talwandi Sabo Power Plant 4 Rajpura Dariba mine & smelters 4 South Africa block business and Sindesar Khurd mine 5 KG-OSN-2009/3 block Aluminium Captive thermal power plant T 5 Zawar mine 6 PR-OSN-2004/1 block 1 Lanjigarh alumina refinery It’s all of our responsibility to ensure alwandi Sabo Power 6 Skorpion mine, Namibia 2 Jharsuguda smelters & power plants Iron Ore that everyone who works on our site (1,980MW) 7 Black Mountain mine, South Africa 3 Korba smelters & power plants *Lisheen had safe, detailed and 1 Iron ore operations - Goa fully-costed closure after 17 years 8 Lisheen mine, Ireland* returns home safely every day while 100% 2 Iron ore operations - Karnataka of operation in November 2015 protecting the environment for our estern(Liberia) Cluster 3 Iron ore projects - Liberia **Under care and maintenance W 100% future generations. Skorpion & Lisheen 100% BMM - 74% VEDANTA OPERATES ACROSS THE VALUE CHAIN - FROM EXPLORATION, ASSET 100% DEVELOPMENT, AND EXTRACTION, TO PROCESSING AND VALUE ADDITION, TO DELIVER Listed entity Unlisted entity LONG-TERM VALUE AND GROWTH ACROSS ALL STAGES. ANIL AGARWAL Chairman June 2016 OIL & GAS | ZINC-LEAD-SILVER | ALUMINIUM | POWER | IRON ORE | COPPER

For a detailed description on how we add value across our value chain, refer to our comprehensive sustainability report. *Option to increase stake to 100% | **Option to increase stake to 94.4% | Note: Shareholding post Cairn India merger

01 02 FROM THE CHAIRMAN'S DESK

Vedanta is a purpose-driven organisation. Our products power economies of PLANET In March 2017, I met with His Excellency President Edgar Chagwa several nations, while our social programmes empower communities, to make a Lungu of Zambia and shared Vedanta Resources' 50-year vision for positive impact on human life. At Vedanta, we leverage innovation and We continue our endeavour of ensuring 'zero harm' to environment as a the country. This includes an investment of US$1 billion for the next technology to harness the elements of natural resources and transform them to core focus area for Vedanta. While optimising water consumption or phase of growth; an investment that is expected to create 7,000 jobs. fuel progress and development, with a committed goal of Zero Harm, Zero increasing energy productivity, safeguarding biodiversity or recycling and We are aware of the legacy of the Copperbelt and are committed to Waste and Zero Discharge. upcycling waste, we have systems, standards and technical guidelines to do much more to improve the livelihood of downstream communities. ensure that Vedanta makes the maximum positive impact. I also committed to further help diversify the economy of the Copperbelt by supporting initiatives in agriculture and technology. We signed the first-of-its-kind biodiversity offset agreement of our Black Konkola Copper Mines currently supports 2,700 families and small- PEOPLE Mountain Mining operation in South Africa to ensure that the ecology scale farmers through its Sustainable Livelihoods programme. around the Gamsberg project remains in safe custody for later restoration. As Vedanta, we aim to make our contribution to our people and our communities Our focus is aligned with the priority needs of our stakeholders and a benchmark for businesses across the globe. A commitment to the climate change agenda led to setting up of Carbon global best practices. We have dialogues with the local communities, Forum headed by the CEO of our Power business, Ajay Dixit, to guide the in accordance to the Company values and reiterate our commitment There is a distinct demographic advantage in nations we operate in. Dynamic Group Executive Committee on our climate change mitigation programme. to free prior informed community consent for sourcing bauxite. We populations of youth have the resolve to challenge the status quo, passion for are continuously analysing the impact of and adopting technologies what they do and ambition to do more. We bring together the talent of this Wealth from waste continues to be an initiative close to my heart. I see that help us explore and operate more sustainably. new-age generation and experienced knowledge anchors, to set and achieve immense potential to use technology to extract valuable resources from the waste we currently discard. This year, we managed to recycle more than ambitious sustainability targets. DURING THE YEAR, WE INITIATED A US$30MN half of our non-hazardous waste. We are making our work environment safer. We have in place policies, standards INVESTMENT FUND FOR IN-HOUSE R&D, SUPPORTING and best practices to ensure the health and safety of Vedanta's workforce. This OUR WEALTH OF KNOWLEDGE AND SPIRIT OF year, we recorded our best-ever safety performance in terms of lost time injury INNOVATION WITH MEANINGFUL RESOURCES. frequency rate. I am saddened that seven of our people lost their lives. PROSPERITY Achieving zero harm continues to remain our aim. We rigorously undertake improvement interventions on safety processes among all our employees and What we earn must be invested in social development for communities Due to the diligent work by teams across its operations, Vedanta contractors. Upholding safety practices is non-negotiable for all our workforce. I and corporates to move forward together. Limited has been ranked as India's leading publicly listed company am proud of the significant progress Vedanta has made in this area but we must We saw a healthy increase in our productivity this year, with record annual in the India Disclosure Index 2016. It became the only company in and will do more. production across our Zinc, Copper, Aluminium and Power businesses in the natural resources sector to achieve the full score across all A signatory of the United Nations' Women's Empowerment Principles (WEP) - India. This year, we also delivered our promised merger of Cairn India disclosure parameters. This strengthens my belief that we are on 'Equality Means Business', Vedanta practices and promotes equal employment Limited and Vedanta Limited, simplifying the Group structure, and course in our sustainability journey, and that with the guidance of the opportunities. Our Board has set a target to raise women board representation aligning the interests of all shareholders for the creation of long-term Board Sustainability Committee, we will lead global benchmarks. to 33% by 2020. sustainable value. We remain committed to building a strong relationship with you and ON INTERNATIONAL WOMEN'S DAY 2017, WE PLEDGED TO WE CONTINUED TO DISTRIBUTE PROSPERITY. TOGETHER WITH all our stakeholders, because only together can we create a PARTICIPATE IN AND LEAD THE UNITED NATIONS' 'PLANET 50-50 BY GOLDEN JUBILEE DIVIDEND PAID IN APRIL 2016 AND INTERIM sustainable future. 2030' VISION. DIVIDEND IN OCTOBER 2016, THE DIVIDENDS BY HINDUSTAN ZINC LIMITED IN FY 2016-17 ARE THE HIGHEST EVER PAID IN INDIA IN A FINANCIAL YEAR. We continue to proactively engage with the communities in which we operate, ANIL AGARWAL CHAIRMAN, VEDANTA RESOURCES by spearheading a number of initiatives and long-term programmes. Upholding education, women's empowerment, skill building, and farming and We also invested almost US$18 million towards carrying forward our various animal husbandry we enhance the quality of life of communities that support us. social initiatives. We are making progress towards our target of building 4,000 Nand Ghars, with 100 launched across India this year. These state-of- the-art child care centres will go a long way in ensuring quality education and nutrition for the children of India, in line with Hon'ble Prime Minister of India, Narendra Modi's vision.

03 04 CEO's MESSAGE

A sustainable future is one in which growth and development are environmentally This was supported by successful implementation of 'zero CREATING VALUE sustainable, human rights are protected, and benefits of progress are shared discharge' at many of our plants, improvement in operational equitably amongst all the stakeholders. As custodians of the natural resource efficiency, setting up effluent and sewage treatment plants, and The core purpose of any organisation is to add value to society and not sector, we remain committed to the principle of Zero Harm to People and Planet utilisation of treated water for various applications. Our businesses limited to creation of profit. This year, we contributed US$6 billion to and ensure that we leave behind a positive legacy for generations to come. continue to explore opportunities to utilise fly ash in cement public finance, globally. Over and above creating jobs and paying taxes, making, road construction and building material manufacturing. we invest in empowering local communities through education, skilling, At Vedanta, our efforts on Sustainable Development starts with our commitment This year, nearly 50% of fly ash from our operations was recycled, providing infrastructure, boosting health indices. Through 3,200+ Self-Help to Social License to Operate. The Vedanta Sustainable Development Model which we aim to continue in 2017-18 on ramped up capacity Groups, we empowered around 39,000 women. On the education front, comprises of four key elements - Responsible Stewardship, Building Strong utilization of aluminium and power. we have transformed Nand Ghars from a mere preschool to a convergence Relationships, Adding & Sharing Value and Strategic Communications. point for a number of government programmes such as clean water, Together, these elements enable us to ensure effective business processes that We believe that the culture of responsible stewardship starts at sanitation, primary healthcare and entrepreneurship training. mitigate risks, protect health and safety of our employees, efficiently manage home and thus our prime responsibility is to safeguard the health the environmental footprint, and enhance indirect and direct impact to and well-being of our employees. We have directly linked WE MADE A SOCIAL INVESTMENT OF ALMOST US$18 MILLION employees, communities, investors, suppliers, customers and governments. employee remuneration to the implementation of safety WHICH BENEFITED 2.20* MILLION PEOPLE. performance standards and prevention of fatalities and progress is Sustainable development is at the heart of our business and to make a valuable regularly reviewed and monitored by the board-level sustainability contribution to the collaborative global effort we have aligned our sustainability *Some of the people could have been benefited in more than one project. committee. This year, we succeeded in reducing the number of philosophy and practice to the UN Sustainability Development Goals. fatalities to seven, from twelve in FY 2015-16. But this performance too is unacceptable and a matter of great concern to us. We are SUSTAINABLE COMMUNICATIONS RESPONSIBLE GROWTH taking definitive steps to eliminate such serious accidents by educating, motivating and mandating an intense safety discipline Vedanta comprises multiple businesses across diverse geographies but it It is our strong conviction that higher accountability yields better outcomes among our workforce. communicates with one voice. We communicate early and clearly which and thus it is our constant effort to go beyond compliance in all three domains - helps build trust among stakeholders. We utilise multiple dialogue channels environmental, social and economic. At Vedanta, we continue to focus on those to contextualise and provide insights into our actions and intentions. factors that are in our control. This includes delivering production and growth, TRANSPARENT DIALOGUES optimizing costs and leveraging technology & innovation for operational As a global leader in the natural resources industry, we engage in active Stronger the connect with stakeholders, more resilient is the Social excellence to run our business even more efficiently and productively with advocacy on industry wide issues such as under-pricing of iron ore, bauxite License to Operate. Stakeholder engagement and responsiveness robust safety, health and environmental performance. linkage and promoting zinc and take up spearhead roles in industry forums have been institutionalised at Vedanta through our social policy and events. A sustainable future can only be carved when all stakeholders and stakeholder engagement technical standards. These Vedanta acknowledges the rising global concern on climate change and work together and grow together. These synergies can only be standards require each of our operations to identify stakeholders continues to take sustained action to reduce its impact through energy strengthened through dialogue and feedback. conservation. We have revised the Vedanta Carbon Policy and Carbon Strategy and determine engagement plans, including recording and under which we have set ourselves a goal to reduce our carbon intensity. responding to all enquiries and grievances. We expect to achieve up to 16% reduction in carbon intensity by 2020 from a We continue to uphold the principle of Free, Prior and Informed I am sure that this report will give you further insights to our efforts around 2012 baseline, which was the first year of audited data. We are also scaling up Consent while engaging the indigenous population for a sustainable development. I strongly encourage you to go through the solar energy in our energy mix. Hindustan Zinc commissioned a 16 MW solar meaningful dialogue. report and share your valuable feedback with us. power plant this year and has set a target of 115 MW in the short-term. We work closely with governments, communities, local & global WATER IS A CRITICAL RESOURCE FOR VEDANTA AND WE ARE NGOs as well as industry bodies such as CII, FICCI and WBCSD. TOM ALBANESE COMMITTED TO SAVE EVERY DROP WE CAN. THIS YEAR, WE HAVE Our Code of Business Conduct & Ethics and Human Rights Policy CHIEF EXECUTIVE OFFICER ACHIEVED 173% OF OUR TOTAL WATER SAVING TARGET. help reinforce stakeholder trust and confidence.

05 06 W

E Materiality I

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E MATERIALITY ASSESSMENT HELPS US MAINTAIN THE RELEVANCY AND CREDIBILITY OF THE V

O & APPROACH REPORT, AND ENSURES THAT IT REMAINS FOCUSED ON WHAT MATTERS. OUR MATERIALITY PROCESS IS IN LINE WITH GLOBAL REPORTING INITIATIVE (GRI) GUIDANCE. WE SEEK TO IDENTIFY THE ISSUES MOST IMPORTANT TO OUR STAKEHOLDERS AND OUR BUSINESS, AND

At Vedanta, we understand the value of a unified sustainable development agenda that goes beyond compliance. Though each of our subsidiary PRIORITISE OUR INTERVENTIONS ACCORDINGLY. businesses operate independently under a federal structure, we follow a Sustainable Development Model which is integral to the core business and the risk management strategy. Developed keeping in mind, multiple internal and external sustainability imperatives like materiality and core values of Vedanta, UNGC's 10 principles, United Nation's SDGs and standards set by International Finance Corporation (IFC), ICMM and OECD, Two years ago, we conducted a comprehensive Group-wide materiality process comprising identification of material sustainability topics, our Sustainable Development Model comprises four pillars: prioritisation of these topics and verification of our analysis. To understand the perspective of external stakeholders, we continue to engage with our six core stakeholder groups: Shareholders and Lenders, Industry (suppliers, customers and peers), Civil Society (NGOs and other organisations), Governments, Employees and Communities on a continuing basis. We also conduct a detailed ranking exercise to understand the importance given to certain material issues by the stakeholders. To get the management's perspective, we conduct internal leadership and operational management workshops, interviews and ranking exercises. Material Aspects

The responses from the ranking exercises are sieved through two measures: 'Relevance to Vedanta's Stakeholders' and 'Relevance to Vedanta Management'; and what emerges is a materiality matrix that is an eclectic mix of sustainability issues that is relevant to us and our stakeholders. This year we have revalidated this materiality matrix.

Responsible Building Strong Adding & Strategic MATERIALITY MATRIX h

Stewardship Relationships Sharing Value Communications g i Human Rights H • Ethics and integrity • Environmental Management • & Indicators Employee OHS ealth | Env Labour Rights nal H ironm • atio en • up t | cc 3 Modern Slavery Act Climate Change Anti Corruption O 60 & ce support ° • s • n r P • ty na el r These four pillars are critical e r at o f ve io je a o n c S g s t to ensuring the long-term | h M Closure Planning Resettlement Community Health le ip e a • b n • and Safety c • i b successful future of our business - n s a u g a n RESPONSIBLE i n o l e Supply Chain meeting our strategic goals r d m e p STEWARDSHIP i e eholders • v s n o e g n Community Engagement of growth, long-term value and t Financial Transparency G R Ensuring effective business processes Equal Opportunity • • sustainability. for robust compliance and risk •

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Responsible Stewardship Building Strong Relationships Adding and Sharing Value Strategic Communications

The Sustainable Development Model is reinforced by a Sustainable Development Framework that helps execute the model. The Model and Framework are endorsed This materiality matrix is reviewed and ratified by both the Executive Committee (EXCO) and the Sustainability Committee. The top-right corner by the Board-level Sustainability Committee and provide a robust structure to deliver all-round sustainable performance, and consistency across our business. indicates the highest priority issues, indicating the importance for both, the stakeholders as well as the management.

07 08 Roadmap & Progress

OUR ROADMAP SETS CHALLENGING ANNUAL TARGETS ON ISSUES MATERIAL TO US AND OUR OUR TARGETS AND ACTIONS. THE ROADMAP CONTINUES TO STEER OUR SUSTAINABLE DEVELOPMENT STAKEHOLDERS, AND IS REVIEWED EVERY YEAR WITH A VIEW TO UNDERSTAND OUR TRIPLE BOTTOMLINE JOURNEY. THE OBJECTIVES AND TARGETS ARE MAPPED IN ALIGNMENT WITH THE MATERIALITY ISSUES PERFORMANCE. THE GAPS IDENTIFIED ARE ADDRESSED APPROPRIATELY THROUGH ALTERATIONS IN BOTH AND THE SUSTAINABLE DEVELOPMENT GOALS.

Objectives and Targets Performance Objectives and Targets Objectives and Targets Performance Objectives and Targets FY 2016-17 Status FY 2016-17 FY 2017-18 FY 2016-17 Status FY 2016-17 FY 2017-18 OCCUPATIONAL HEALTH & SAFETY ENVIRONMENT

Implement safety performance standards: Average score was 52%. Zinc India, Zinc Achieve score >75% in six safety Independent expert to review high Review completed and those responsible Complete the dam break analysis of the >75% of critical elements in the standards International and Aluminium Iron Ore performance standards priority facilities for dam management have been trained. identified facilities across businesses to be implemented across the business were audited and recorded improvement Two facilities undergoing further analysis, compared to the previous year but no areas of immediate concerns were found and some best practices identified

Performing baseline assessments for Expanded the baseline exercise at Extend baseline health assessment two other businesses Jharsuguda in March 2017. Also, looking across businesses Capacity building (selected professionals) Could not initiate in FY17 Initiate the capacity building of selected to increase the speed of application in on biodiversity management including professionals on biodiversity other businesses ecosystem services

Achieve zero fatal accidents Total - seven fatalities occurred in the Zero fatal incidents and 22% reduction COMMUNITY RELATION & STAKEHOLDER ENGAGEMENT reporting year (Iron Ore business - 1, in Loss Time Injury Frequency Rate (LTIFR) KCM Zambia - 2, HZL - 4) Social impact assessment studies to be Need-based assessment completed Social impact studies to be continued continued for remaining sites for almost all sites. The social impact for remaining sites ENVIRONMENT assessment studies were done at oil & gas business

Water saving: 2.1 million m3 Water saving of 3.93 million m3 at the • Standardise water risk assessment end of FY 2016-17 achieved approach for the business Implementation and utilisation rate of SAP - Stakeholder and grievance – the SAP system to be increased handling system rolled out • Undertake water risk assessment for significant businesses with water as a material issue – – Expand the company's flagship CSR • Water saving: 2.2 million m3 programme, Nand Ghar, to all our businesses

Continue to monitor new projects and site All projects at Vedanta Limited are Compliance to environment and social – – Embed and encourage employee closure as per the sustainability framework being managed as per Vedanta management plan for new projects across volunteering for social initiatives Sustainability Framework businesses

HUMAN RESOURCES Completion of Biodiversity We have made considerable progress Complete BMP at our oil & gas business Management Plans in this regard. All our operations have BMPs except few operations in KCM Focus on performance and measurement Scope and contract finalised. Scorecard Employee scorecard coverage to be business, Oil and Gas business and for top 150 leaders of 700 professionals in place including extended to 100% of the professional Karnataka iron ore business top 150 leaders. Initiative being driven employees in project mode To continue exploring opportunities and Nearly 50% of fly ash from our operations Achieve 50% of fly ash utilisation rate areas to increase the fly ash utilisation rate is recycled. The business continues Ensuring 100% coverage of Code of 100% employees could not be covered Ensure 100% coverage of code of conduct exploring opportunities to utilise fly ash Conduct training for all employees under code of conduct training training for all new professional employees in cement making, road construction and building material manufacturing Continue to focus on the diversity 18% of employees joining this year Focus will be to increase gender diversity objective of 15% of new hires to be women were women in hiring 20% women this financial year To realign the Group's energy and carbon Carbon Forum has been formed. We are considering formal GHG reduction policy in line with COP 21 outcomes Policy and strategy drafted with baseline targets and we expect to achieve a 16% targets and actions under development reduction in carbon intensity by 2020 from 33% female representation at We are moving forward to achieve Target to achieve 33% female representation a 2012 baseline, which was the first year of the Vedanta Board Level by 2020 the target. During the reporting year, at the Vedanta Board Level by 2020 audited data we have made a number of senior female appointments

Energy saving: 1.5 million GJ We reached energy saving of 0.62 Energy Saving: 1.39 million GJ million GJ at the end of FY 2016-17 Achieved In Progress / Partially achieved Not achieved

09 10 RESPONSIBLE Sustainable Development Journey STEWARDSHIP Our sustainable development journey continues to break new grounds and unlock immense value for us and our stakeholders. We have invested our time and resources in introspecting our actions; we have achieved our targets and formulated ambitious new ones; we have adopted global best practices and taken innovative leaps; we have aligned our standards with industry benchmarks and charted some of our own. We have done all this and continue to do it with a singular agenda: ensuring long-term growth for all stakeholders.

FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17

Businesses started Introducing 'Strategic Environment & Social Review VSAP and its Implementation embedding Vedanta Communications' as a new of VSAP Continued external VSAP material priorities Sustainable Development pillar of our Sustainable review identified for the FY 2016-17 Framework Development Model VSAP into its Fourth Year of are occupational health and training and implementation of Rolling out of Vedanta Implementation revised as per safety, resource use and policies and standards Sustainable Development the material priorities with more management, stakeholder External Review Concluded Framework continues emphasis and focus on safety engagement, and supplier and (URS - Scott Wilson) by inclusion of safety contract management Introduction of safety all recommendations got performance standards, performance standards, formal Social Impact Assessment successfully closed supported by external auditors safety risk assessment, Studies need-based Sustainability linked with industrial hygiene baseline Advancing Accountability assessment completed for Remuneration sustainable assessment and safety by incorporating safety nearly all our businesses. The development KPIs linked to leadership coaching performance standards into major social impact assessment executive remuneration executive remuneration studies were done at Cairn Oil VSAP into its Third Year of and Gas Business Vedanta Sustainability Implementation revised Social Impact Assessment Assurance Programme (VSAP) as per the material priorities, Studies - HZL & Cairn India Advancing Accountability into its Second Year of supported by external auditors aligning all community projects employee health, safety and Implementation with updated studies well-being identified as the Environment & Social Review supported by external auditors material issue, is a key priority of VSAP Started external review for the company. Hence, it is Revisiting our Community addressed by incorporating Need Assessment Studies safety performance standards aligning all community projects into executive remuneration with updated studies

Governance | Safety & Occupational Health | Environment

It encapsulates our approach towards the safety of our employees, sustenance of the environment and effective implementation of our business processes.

TRANSFORMING ELEMENTS

ELEMENTS OF A SUSTAINABLE S U S T A I N A B L E D E V E L O P M E N T A vital part of all phases of our project lifecycle - R E P O R T FUTURE 2 0 1 6 - 1 7 Responsible Stewardship is how we manage risk, demonstrate legal compliance and leverage best practices. 11 12 13 C Non-minority gr R F A adher whole. Our V A and A pr independent Dir In E edanta Details of A E T ofessional S accor O C C W ectors. Z RESPONSIBLE I H D Employees fr r achieves W R obust E Employee fr M Minority gr ence E R I The

R STEWARDSHIP C O O dance R E L E is O G P S theBoar E L L As S a to Age gr governance Boar - L - O S A multi-geographic, S and T of D its N D Non-executive ethical P A N A with S O E Mar O d, objectives S L D sector I d's r L O F aided N T T E O the S E D I I ch oup oup oup om om N N conduct esponsibilities, H S I Y R O 31, E UK T E -specific S E A structur by U E T D N N O T G 2017, Corporate V to G E O a C R R Dir M R str and deliver E O E C multi-stakeholder T e I ong our ectors. experience. T P F B A U E H headed F T composition, a Y O E N P P E high T &E Boar and long R P ' A Governance S S L R T The H U R O d degr I well-designed O I by E N R term N consists E B R C A Dir E T D our The A G U tr ee C S E E ectors L aining andevalua success. H S R Boar of E , T Boar O federally I T N code, S N M S H T of transpar R A A O S d A come the E d U U R of L W T I D is pr C majority T E Executive A Dir D r N ocess, A W esponsible Less than T A modelled S ency fr N A 30 yrs R ectors U Male Male B om . E H D D tion ar 7 0 0 A R S E . O S policies diverse O E E of R P X F serves L I Chairman, our W e availableinthe E N S E R U or T to C C R I A E ganisation T Boar T E shar international and A 30-50 yrs R S E Between U that H Female Female P T S N L D T d, eholders Y E Sustainable 0 1 1 C A C , I purpose Executive excluding V L E B E L E E S R F with S Annual R A S F I F T B E E R E backgr for A E E a N of C L K E Above unifying Vice R 50 yrs Y ensuring the Development T T binding D E epor Y 7 I I A H B A V ounds Chairman, Chairman, A L t. 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OURLISTINGANDREPOR i r s r g o r c a o a e r a m o C O l w n U O O H f R R H n E N u p p q c o l A d o i e d t p o c u f p r eport A I D i P E o E d N N m r D c i i e i r r N N o O e n r o r t e e c e n C P A a a l s C g a s p i s T D , S m s c C l n A U u S . w s m ) L r u T w i K N c e R i p e t U e U h r a I G o e U a a I R s e s I p n t i P L r E n A T l C e P f w r t a C e l n a E o P i d e I A e L n f i d O R e C e E o n o f p P a S T r d M r P r i E x s g t t r e o s e S T o S p W L e T , c p E o e , a r L S r r r c i t E c r O n u I p e y S i . ed a o N u I T n i o C E d r n p l N n t N E t c i t A u U r s n R a i O o d e c O n C R a a n u p a R r , o d T i g n N P s p f t n r p O a n e u e y FRAUD, d M I p i A C & w W OFTHE r i n t P d r l S N D r a o P l r l e s o U g i i a O i c n e o p D a P CORRUPTION L s n C r c O t C g r i n r k v i a R s w t s I i o A D O , d R e o a r f L E p t e L n e t o t s A r o r r e r R s s E t E U r P a e h R I o c , i . o g G a n b C s o a BRIBERY o v A E T p o D g a s v e i n O r d A E f I t e l e a h TING N d e o v B i E e I o i r a e r u F n n S N a N d n v L d I a c S s t b i , N e t t f n , o D E G o e e o d u i d r n h G f r . a l f 14 FRAMEWORK & IMPLEMENTATION

OUR BOARD COMPRISES Sustainable The EIGHT DIRECTORS, AND MORE THAN 50% OF THEM Development Framework Implementation ARE INDEPENDENT.

Our Sustainable Development Model is underpinned by a Sustainable Development Framework that helps each business put the Model into The Sustainable Development Framework is deeply embedded in the ethos of Vedanta. The Board of Directors provides leadership and guides the practice. The Framework, rolled out in FY 2012-13, comprises several policies, standards and guidance notes that were developed in line with businesses towards fulfillment of the commitment to various stakeholders. The Sustainability Committee laid by Independent Director and ICMM, IFC, OECD, UNGC and SDGs guidelines. supported by business CEO's, corporate sustainability team reviews and monitors progress against the framework and sustainability objectives and targets during the year. The Executive Committee is supported by the Corporate Sustainability Team. Our efforts to establish and implement a robust Sustainable Development Model and Framework that is aligned with all international best practices, is illustrated in the following chart: VEDANTA BOARD LENDERS EQUATOR PRINCIPLES

REMUNERATION SUSTAINABILITY AUDIT EXECUTIVE NOMINATIONS COMMITTEE COMMITTEE COMMITTEE COMMITTEE COMMITTEE IFC Performance Standards, EHS Guidelines, ICMM & OECD Guidelines and Internal Issues Chaired by Chaired by Chaired by Chaired by CEO, Chaired by Chairman, Non-executive Director, Non-executive Director, Non-executive Director, Mr. Tom Albanese. Mr. Anil Agarwal, Mr. Geoffrey Green. Ms. Katya Zotova. Mr. Aman Mehta. The Committee meets The Committee identifies VEDANTA SUSTAINABILITY FRAMEWORK The Committee monitors The Committee oversees The Committee monthly and is the optimum balance of the effectiveness of the Group sustainability maintains and monitors responsible for skills, background and RESPONSIBLE BUILDING ADDING & STEWARDSHIP STRONG RELATIONSHIPS SHARING VALUE communication with performance and reports Group systems and implementing strategic experience on the Board. analysts and shareholders to the Board on a internal controls, plans formulated by the concerning the Board’s periodic basis. including integrity of Board, allocating STRATEGIC COMMUNICATIONS Remuneration Policy. financial statements, resources in line with anti-bribery and delegated authorities corruption procedures and monitoring the Policies and employee operational and whistleblower policies financial performance of the Group.

See the Annual Report See the Annual Report for See the Annual Report for See the Annual Report for See the Annual Report for Technical Standards / Management Standards / Guidance Notes for detailed information detailed information detailed information detailed information detailed information

VERIFICATION PROCESS (VSAP) SUSTAINABLE DEVELOPMENT TEAM Run by VEDANTA LIMITED KONKOLA COPPER MINES Management Assurance System Function Subsidiaries Divisions COMMUNITY REPORTING & OCCUPATIONAL RELATIONS ENVIRONMENT COMMUNICATION HEALTH SAFETY HZL BALCO MEL WCL ZI CMT TSPL Sesa Sterlite Vedanta Al Cairn O&G Iron Ore Copper & Power Business GAP ANALYSIS Review of Sustainable Development Team and Segment Business Committee Upgrading all Subsidiary Company Management Systems including (Monthly Operational Reviews / Business Management Group Meetings) ISO 14001, ISO 9001, OHSAS 18001

Subsidiary Local Assurance Process As part of the implementation process, we celebration of success in meetings, and resources have been dedicated at each of the provided training to relevant management monitoring of progress against established Group's businesses towards this purpose. teams to ensure a solid understanding of the targets. Framework documentation is made The expected outcomes are clearly defined Framework's requirements. We cascaded available to all employees through the at the beginning of a financial year. Implementation of Sustainable Development Framework in all Operations information to our subsidiary businesses, company's website, on individual company Monitoring and management mechanisms providing on-location training to managers, to portals, and through awareness training, which ensure continuous improvement. Continual ensure that they could drive compliance within is attended by staff at all levels. internal auditing offers a quantitative view of Over the years, the Framework has served as The identified gaps have been discussed and their teams. Large-scale posters and other Ensuring Sustainable development is a key achievements against objectives and keeps an effective tool to unify Vedanta's reviewed by the leadership teams, and action support materials were provided to reinforce key business responsibility at Vedanta and specific our sustainability development programmes sustainability approach across diverse plans are in place to ensure compliance within messages. This is as an ongoing process, and is on track. geographies and businesses. Today, it is an ALL OUR DECISIONS ARE SIEVED a specified period of time. part of the training calendars for each business. integral part of our business strategy and Last year, we provided The Vedanta Sustainability Assurance In order to further embed our Framework, we Number of people with helps us and our subsidiary businesses to THROUGH THE INDICATORS OF Sustainability Responsibilities Programme (VSAP) - our internal risk also delivered additional topic-specific training conduct business in line with our core values 1,115,562 across the Group 520 THE SUSTAINABLE DEVELOPMENT management tool run by the Group's across the Group, addressing areas such as of trust, entrepreneurship, innovation, man-hours FRAMEWORK TO ENSURE THAT Management Assurance System, is in place to health and safety management, environmental excellence, integrity, respect and care. of HSE training Community Relations 155 WE REMAIN SAFE, ETHICAL AND ensure compliance with the Framework. This incidents, international standards such as the Each of our subsidiary businesses have carried ascertains that all our businesses are Global Reporting Initiative (GRI), and reporting Occupational Health 45 out a gap analysis to identify any lacunae TRANSPARENT AT ALL TIMES. monitoring and reviewing their sustainability best practice and assurance. The importance of 171,566 939,874 between their existing management systems objectives and implementing the same at the Framework is reinforced by measures like man-hours man-hours Environment 123 and processes, and the Sustainable regular intervals. linking management remuneration to key were slotted for were dedicated for Development Model and Framework. sustainability targets, communication and employees contract workforce Safety 197 15 16 THE SUSTAINABILITY COMMITTEE REPORT

ENVIRONMENT • Review the Group's initiatives for reduction in specific water and energy consumption Delivering operational excellence and setting the highest benchmarks in governance, safety, • Review progress on development of Carbon Policy, Strategy and Action plan under the aegis of the 'Carbon Forum' environment and social responsibility across the locations of the Group's operations and • Review of action plans for improvement of KCM's environmental performance projects has always been a part of the business model at Vedanta. The Vedanta Sustainability Framework guides us towards a long-term, sustainable future for our business operations, SYSTEM DEVELOPMENT & • Review of performance evaluation of the Sustainability Committee and review of PERFORMANCE REPORTING terms of reference meeting our growth aspirations, and creating long-term value for all our stakeholders.

COMMUNITY RELATION & • Update on Sustainable Development Goals and UK Modern Slavery Act ENGAGEMENT • Review of important stakeholder engagements The robust implementation of the Vedanta Sustainability Framework (VSF) has been a top priority for the Committee. We have made significant improvements in the way we do our business since VSF's launch in 2012. One of the significant sustainability risks for our business has been our Group's safety performance. Considerable efforts have been made in this sphere with involvement at all levels. The Sustainability Committee is determined in the journey of achieving 'Zero Harm'. We have progressed over the years and will continue to make The loss of seven lives at our operations during the financial year under review is not only saddening, but also an issue of grave concern ourselves a safer and a better company. that needs to be addressed with immediate effect. We had an unfortunate tragic incident at the HZL project site in Rajasthan, wherein we lost four invaluable lives. The event amplified the vulnerability of our contractor safety management systems even while dealing KATYA ZOTOVA with reputed contractors known for their expertise and practices. It has taught us important lessons and raised an alarm to implement Chairperson, Sustainability Committee systemic changes. Our operations are strengthening implementation of safety performance standards to avoid such unfortunate incidents in future. We have also developed and rolled out Crane and Lifting Performance Standards.

Another important aspect is ensuring that lessons from incidents are institutionalised across the businesses and repeat incidents are More details on the activities of the committee can be found on our Sustainability microsite. eliminated. To this effect, we ensure that each subsidiary company's Chief Executive presents a detailed appraisal of critical incidents along with root causes and mitigative action plans to the Sustainability Committee. Through Corporate HSE, we have started tracking 'sign off' from Chief Operating Officers on lessons learnt from High Potential Incidents (HIPOs).

We maintained our focus on containing impacts on air, water, waste and tailing related risks, to achieve our targets on saving water, energy, and recycling waste during the year. Our businesses have met many of their goals, but few remain unconquered, where we missed the targets. Our focus is to boost those businesses, by actively working on the root causes of their failure.

We are using the Vedanta Sustainability Assurance Programme (VSAP) as our internal tool to monitor implementation of the Vedanta Sustainability Framework. The follow up audit processes, include the review and implementation of action plans for each of Managing our Risks the businesses, operational sites and mines have put in place, evaluation of objectives and programs in line with our framework requirements and monitoring performance at regular intervals, with emphasis on close out actions from past audits. As a global natural resources organisation, our businesses are exposed to a variety of risks. It is therefore essential to have in place the necessary systems to manage these risks, while balancing the relative risk reward equation demanded by our stakeholders.

Our risk management framework serves to identify, assess and respond to the principal risks facing our business and is designed to be simple and Contribution of our businesses to Sustainable Development Goals (SDGs) is another important dimension which calls for consistent and provide clarity on managing and reporting risks to the board. Our management systems, organisational structures, processes, immediate deliberation and action. The Committee reviewed preliminary assessment of priority Sustainable Development Goals standards and code of conduct together form the system of internal control that governs how we conduct the Group's business and manage the and has advised detailed interventions with appropriate action plan/road map for the priority SDGs at Group level. associated risks.

Risk management is embedded in our critical business activities, functions and processes. It helps Vedanta meet its objectives through aligning operating controls with mission and vision. The effective management of risk is critical to support the delivery of the Group's strategic objectives. We are using the Vedanta Sustainability Assurance Programme (VSAP) as our internal tool to monitor implementation of the Vedanta Sustainability The framework helps the organisation meet its objectives through alignment of operating controls to the mission and vision of the group. Framework. The follow up audit processes, include the review and implementation of action plans for each of the businesses, operational sites and mines have been put in place.

Sustainability Committee Activities during the Year

Area of Responsibility Description Governance SDG16 SUSTAINABILITY • Review progress made on the development of the sustainability model and framework The Group recognises the importance of identifying and actively managing the risks facing the FRAMEWORK OUR APPROACH IS • Review the implementation of action plans emerging from the Vedanta Sustainability business. We want our employees to feel empowered to take advantage of smart opportunities INTENDED TO PROVIDE Assurance Programme (VSAP) and we want them to do so within the risk appetite set by the Board. It is therefore important that we have a robust governance framework in place to facilitate this. THE STRUCTURAL MEANS • Review & approve sustainable development objectives and targets TO IDENTIFY, PRIORITISE • Review & approve sustainable development initiatives, charters and partnerships We use this framework to identify and assess emerging risks at all levels in the organisation so that we can take action to effectively manage these risks. Materiality and risk tolerance are key AND MANAGE THE RISKS • Review progress on Sustainability Issues raised during AGM 2016 considerations in our decision-making. The responsibility for identifying and managing risk lies INVOLVED IN OUR with all the managers and business leaders of the group. ACTIVITIES IN ORDER HEALTH & • Review of Group safety incidents and performance The Board of Directors has the ultimate responsibility for management of risks and for ensuring TO SUPPORT OUR VALUE SAFETY the effectiveness of internal control systems. Such a system is designed to manage rather than • Overseeing the implementation of action plans with respect to fatal accidents eliminate the risk of failure to achieve business objectives, and provides reasonable and not CREATION OBJECTIVES. • Review of Occupational Health & Safety interventions absolute assurance against material misstatement or loss. 17 18 19 V Our whatever well-being industry W r employees As l d f s s O o a esponsibility t y edanta o i t w v s e l a 2 S w l e t a s f m I

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N b E s e o n t a i F y r K o r l c o & s e e A l s t T S r N T a S a o o i S i i r m o r t o r i u e ' m s C l C r o s n l r n h c A r h h a E g i , u e O k i O N h n e O f s t l s T E n t e & r a c a w O m o y e o e y m p f r v s . W i e t t N R o t i f a i n v c E R s h h m F S m e C p o T F r o n e y e C d m s e e N i m c e e r a e l l t i D p h d p D r d a A c r A A y w n E E m u m o t v g k S d v a S n c e l e m e e e e V g i p A m T m a o D e R n u F e o e c o i i i s A c e p r e H t n t i a l e r m a E o s a e w p s I s m s t t i t R e E m . I d k e fi t t O e e g i . F t n O V e b A e i x a a . e n e a c D T m o o e e i e t n E I i t t n e n n d N V r I n n n s u H F t i a m Y S d a i d n e N e t t T e t a a r t - a E c S c t i g n e e b n n l e t Y a t G E h n o t g l e s e e t e . r s t c H r o a e C / F M O T T T v d a e P O e H H H l U U t r E h e R u E A E L R R A d n a O T T R n i S i U I o U B n D d M E U n E N t U R s U . h M R P I a I E e S S C O f R E e P I , f T o B N t O S N Q L y r I R m E O V t V A U o W O S a I Y I p N A N l T S A i I E a c D L Y L G g s D E I I L , r N a T e I S P r W N C S e Y e R C A m O U I a O T O & A l e N N s P R I n o S D A D P S t S K C s T U O E A w A I C N R F V i t D T h T E S E I I T U N S O Y S G N . 20 In addition to the seven specific standards, we LTIFR * FATALITIES Although we succeeded in reducing the have two Technical Standards that govern Our Safety number of fatalities, it is still a performance Occupational Health Management and Safety per million man-hours worked that is unacceptable to us and is a matter of Management in a broader context. SDG3, SDG6 great concern and regret for the entire Performance Vedanta group. In the reporting year, focus was laid on the stringent implementation of SPS protocols We report our safety performance as per ICMM guidelines. We marked an overall declining trend across our businesses. The challenge was not in injury rates with the Group's Lost Time Injuries reducing from 103 in FY 2015-16 to 75 in AN IN-DEPTH REVIEW OF only to introduce the safety standards but FY 2016-17. With LTIFR of 0.39, FY 2016-17 ranks as our best year so far in terms of an EACH OF THESE INCIDENTS also to sustain them across the year. overall safety performance. HAS BEEN CARRIED OUT TO We have made major progress towards At Vedanta, we believe that a healthy workforce is a more alert and productive one. To promote ANALYSE WHAT WENT WRONG. embedding SPS across the businesses the overall well-being of the employees and as a precautionary measure, all our sites conduct through rigorous training drives, monthly 0.86 0.83 0.55 0.54 0.46 0.50 0.39 7 8 26 22 20 Initial Medical Examinations (IME) and Periodical Medical Examinations (PME) for both 19 12 meetings, inclusion and ownership of top A Root Cause Analysis has been conducted 1 2 3 4 5 6 7 permanent employees and contract workforce. We have also started capturing the injury statistics 1 2 3 4 5 6 7 1 1 1 1 1 1 1 1 1 1 1 1 1 1 ------management into the safety assessment and ------by the top management of the respective 0 1 2 3 4 5 6 pertaining to the visitors and truck drivers etc., and initiated their medical examinations. 0 1 2 3 4 5 6 1 1 1 1 1 1 1 1 1 1 1 1 1 1 businesses and the results have been shared 0 0 0 0 0 0 0 mitigation, incorporation of safety alert 0 0 0 0 0 0 0 2 2 2 2 2 2 2 mechanisms, interactive media, easy 2 2 2 2 2 2 2 with the Board's Sustainability Committee to accessibility to HSE dashboards and metrics, initiate appropriate action plans to prevent * In 2015-16, we revised our calculation definition in line with the revamped ICMM guidelines and reset the baseline. deployment of safety materials and PPEs, such incidents in future. Thus, LTIFR for that year was revised from 0.46 to 0.50. regular communication between the management and workforce, and regular 100% safety audits. PERIODICAL MEDICAL Incident Type Prevention / Action EXAMINATION Four third party contract workers were Reinforce our permitting systems and fatally injured from the collapse of a management oversight. Also rolled out REAL-TIME INCIDENT 250-ton crawler crane. seventh safety performance standard on Cranes & Lifting. REPORTING CAIRN O&G BUSINESS One fatal accident each was related to Effective reinforcement of safety blasting and working underground. performance standards for blasting procedures and underground safety have We believe that there are two factors that been ensured through regular monitoring. A high-potential (HIPO) incident is an incident differentiate us in the natural resources Reward and recognition initiatives have been or near-miss that, realistically, could have under industry: carried out for increasing safety ownership other circumstances caused one or more among the employees. catastrophic injuries. Awareness of HIPO OUR HUMAN RESOURCES incidents is a key factor in preventing them and AND HOW WE LEVERAGE One fatal accident was related to vehicles Strict adherence to the implementation of we share the learnings of HIPOs to prevent INNOVATION AND and driving. safety performance standards through their reoccurring at other sites. During the year, TECHNOLOGY TO ENHANCE periodic audits. Motivational reward and we recorded a total of 117 HIPO incidents, with recognition programmes were initiated to each fully investigated and the lessons learned END PRODUCTIVITY. cultivate safety accountability across the promoted across all businesses. workforce.

Institutionalising Health & Safety of the workforce is core to all our operations. Zero Harm Culture All our sites have a fully-operational and professionally manned Occupational Health Centres This year, we introduced a number of (OHCs). In addition to IME/PME for all our employees, the OHCs also provide facilities like first Best safety performance can only be achieved through precise execution of the safety practices PREVENTING FATALITY, initiatives to embed technology into the aid support, OPD facilities, and conduct various health camps to create awareness on health and solutions. When one factors-in the dynamic work environment, safety improvement becomes safety management process. aspects and potential diseases. a continuous process. Throughout the year, across business units and through a diversity of SYSTEMATICALLY interventions, we pursued safety with rigour. Some of such initiatives are illustrated below: HZL Prime amongst these, is the online and Continuous work zone monitoring is carried out to ensure a safe and healthy workplace for the employees. Several initiatives like bag filters, dust monitoring, dust suppression, fugitive emission real-time incident reporting mechanism The Fatality and Serious Incident Preventions reduction, proper storage of hazardous chemicals/substances are incorporated to safeguard we have in place. The LogChief, the Programme (FSIPP) commenced at HZL with their health. digital Geological Logging Platform, Understanding the Risk an aim of dealing with critical risks, identifying helps us identify and ascertain any their preventive measures and analysing the reportable incident before it takes a effectiveness of these mitigative steps. more catastrophic proportion. Data is WE CONTINUE TO UPHOLD THE WASH PLEDGE BY PROVIDING Identifying Critical Risks is This initiative enables risk prioritisation and made available to exploration & ADEQUATE ACCESS TO SAFE DRINKING WATER AND SANITATION imperative to strengthen identification of barriers to eliminate them. production managers in real time to FACILITIES TO OUR WORKFORCE ACROSS ALL SITES. risk-based decision enable efficient decision making and All smelters and mines have making and to initiate ensure immediate action and closure of remedial actions. identified high risks and ranked the any potentially hazardous situation. Work Apart from physical safety, we also undertake concentrated trainings on stress management and same to ensure safety ownership. is also afoot to introduce a live safety ergonomics to foster an environment of holistic employee well-being. All these interventions not Several identification dashboard that will be accessible across only help in creating a clean workspace but also assist in maintaining the health of the employees. exercises were carried Thus, accountability for managing risk hierarchies - from line managers to the This year we paid US$ 27,000 as a penalty for technical non-compliance with the Factories Act. out to have an in-depth through the barriers is defined. Periodic senior management team. During the reporting period, we didn't observe any significant / major occupational diseases at understanding of the real audits are conducted to monitor the our operating sites. challenges on ground. robustness and adequacy of these barriers. 21 22 Y Y D D U U CHINGILILA PROGRAMME DYNAMIC LEADERSHIP T T KCM S S IN SAFETY ROLES GROUP WIDE E E IN ORDER TO STRENGTHEN ZERO HARM CULTURE AND IN RESPONSE TO SERIOUS Our Global HSE team comprises 365 professionals and, as an effort to promote S S ACCIDENTS, THE CHINGILILA PROGRAMME WAS INTRODUCED IN KCM IN SEPTEMBER leadership amongst HSE function, 22 dynamic leaders across the businesses A A 2014. CHINGILILA IS A BEMBA WORD MEANING 'PROTECT' - AN APT SAFETY MESSAGE. were identified through a structured process for higher level of challenges Contractor Management C C and growth. HSE in During the reporting period, to strengthen the In these roles, they are being mentored by our leadership team and are Standards mission to protect, a six-month intensive and Imple- Projects & provided with experience of being part of the various high level HSE - centric mentation Design holistic programme was introduced, under which meetings. We envision that with the right guidance, these professionals will HSE drive the next level of safety performance at Vedanta. Improvement Work 25 Mine Captains Streams Baseline designated as safety champions were instructed Critical Risk Health to regularly visit every working area to improve Control Exposures the safety awareness at the site and workplaces.

The Chingilila programme goes beyond imparting training. Following initiatives are testament of the holistic nature of the Programme: V-app 112 KCM safety procedures have been revised to incorporate risk assessment principles in all the safety procedures Safety Mobile Application Ten Cardinal Rules of Safety have been introduced to highlight the ten primary risk at KCM Benchmarking Outsourcing The role of the safety department was restructured to focus on coaching of supervisors on safety issues. With the assistance of the senior management at KCM, the purview of safety department was extended to managing the cost HSE audits with the assistance of senior managers. Enabling Work Streams An internal auditing course to empower managers in effectively handling the safety issues at their respective workplace. Innovation HSE & We mentor young leaders to drive safety performance. Networking A dedicated safety investigation unit has been established to ensure that all safety incidents and accidents can be Technology investigated with greater focus on prevention strategies. Moreover 11 project teams consisting of members from diversified functions VSF across the business has been assigned an objective related to Roadmap The design and implementation of the Chingilila Safety System at KCM has triggered significant improvements in the safety performance and has fast-tracked progress towards our Zero Harm vision. 'HSE improvement' or 'HSE enabling' work streams.

I N I T I AT I V E I N I T I AT I V E S

MAKING BETTER RISK DECISION (MBRD) PROGRAMME DRIVING SAFE GROUP WIDE GROUP WIDE

Our remotely located sites, involve extensive amount of driving. Considering the fact that we To enable cognitive solutions to the had a driving related fatality this year, special emphasis was given to ensuring driver safety by challenges, different sections of the Type 1 Controls Type 2 Controls Type 3 Controls various businesses: Sesa Iron Ore in association with Institute of Road Traffic Education (IRTE), workforce were empowered with Task Based System Based Business/System introduced a training programme on Defensive Driving for truck drivers who are engaged in the knowledge through proper training (leadership focus) (process focus) (critical event focus) transportation of Iron Ore. The assessment of tests conducted for the drivers prior to and after based on their role and scope of the training confirmed that there was considerable enhancement in the drivers' knowledge and operation. Last year, we piloted the MBRD Job Safety Analysis perception about road safety. Our HZL plant has set up an in house store for the purpose of programme - a combination of classroom Safe Work Procedures Standards renting Personal Protective Equipments to the drivers. The safety stores have been very and practical on-ground sessions, to Formal Risk effective in encouraging drivers, both new and old, to take and use standard PPEs in the plant. empower line leaders to make better Task Hazard Assessment Golden Rules Assessment Safety remains our core value in operations decisions by foreseeing the risks relevant to their routine and non-routine work Task Implementation Bow Tie LIFTING RIGHT profile, and understanding the Planning Audits Analysis STERLITE COPPER consequences associated with these risks. Single Point Accountability (SPA) is one of the driving forces of Safety management systems at We have a structured review mechanism Safety Improvement Critical Sterlite. Among our SPA protocols, 'Lifting Tools and Tackles' is a unique SPA, with greater to ensure identification, analysis, Interactions Plans Controls emphasis on safe rigging practices, and proper usage of appropriate tools and tackles. In our mitigation and monitoring of safety risks continuous pursuit to make Vedanta the safest place to work, we introduced 'Centralisation of on a continual basis. Our key areas of risk DURING THE REPORTING PERIOD, 320 FRONTLINE LEADERS ACROSS THE Lifting Tools and Tackles' - the first such initiative in Vedanta Group. The focus of this intitative is and their mitigation levers can be BUSINESS WERE TRAINED UNDER MBRD PROGRAMME. WE AIM TO EXTEND to provide proper handling, storage and tracking of such lifting tools and tackles before and summarised as follows: MBRD TRAINING TO 50% OF EMPLOYEES ACROSS ALL BUSINESSES BY 2020. after use. These tools and tackles are periodically certified by a competent person.

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n t ponds n i o 5 e s r 3 n d y a a B t G c tar c g s water l n s t l i U o H it n i s n o d v under t to m h v d S l e geted m back wastewater u I e e S a n e, I p t conserve s N in m m O i e c l o t i Lead 3 of i s o a holdup Khur E in g n i s the 5 n n s s a nor S in 0 o c c . a t 3 S 0 S e i e f D o u the 0 r G1 d n mal s n 1 u e 2 a d l 26 ENERGY & CARBON SDG7 Performance

Climate change poses a real and credible risk to our way of life on this planet. Managing it calls for collective efforts on mitigation and adoption of DIRECT & INDIRECT ENERGY CONSUMPTION in million GJ innovative technologies. FY 2016-17 FY 2015-16 We calculate and report the Greenhouse Vedanta acknowledges the global concern on climate change and recognises that concentrated and sustained global actions are required to Gas (GHG) inventory i.e. Scope 1 (process manage the scale of the problem and to adapt to its impacts. Our operations are mostly located in developing countries where growth of the Direct Energy Consumption 413.39 394 emissions and other direct emissions) and country and human indices are dependent on reliable and affordable coal based power. Scope 2 (purchased electricity) as defined Indirect Energy Consumption 14.61 11 under the World Business Council for Sustainable Development (WBCSD) and Total Energy 428 405 World Resource Institute (WRI) GHG Approach protocols. GHG EMISSIONS - GROUP WIDE in tons of CO2 equivalent The increase in energy consumption GHG The energy and carbon scenario is a continuously emerging one. Post COP 21, countries across FY 2016-17 FY 2015-16 emissions is due to ramp up of our aluminium the globe have committed to implement their National Determined Contribution (NDC) WE ARE COMMITTED TO and power plant business. While GHG towards minimising the climate change impact. Our Sustainable Development Framework THE CAUSE OF CLIMATE Scope 1 (Direct) 51,896,907 39,581,088 emission has increased the GHG intensity for includes an Energy and Carbon Policy, and Energy and Carbon Management Standard. the business has reduced about 8% over CHANGE AND CONSTITUTED Scope 2 (Indirect) 1,432,665 1,567,605 FY12 as the base year. We are aware that global concern on climate change can bring regulatory changes, introduction CHIEF OPERATING OFFICERS of implicit and / or explicit carbon taxes in the host countries we operate in. This along with (COO'S) FORUM FROM THE evolving behaviour of the environmentally conscious consumer are some of the factors that may affect our business operations - positively or detrimentally. In view of this, we have revised our BUSINESSES TO ADVISE Carbon Policy and developed a full fledged Carbon strategy for the group. GROUP EXECUTIVE Energy Efficiency COMMITTEE ON CLIMATE Our energy and carbon management hinges on a two-pronged approach: improving energy In the reporting year, we focussed more in raising awareness about the need for energy efficiency and putting in place an infrastructure that would and process efficiency, while diversifying our energy portfolio to include renewable energy to CHANGE MANAGEMENT conserve energy across its lifecycle. We envision that by enhancing awareness, the change effected will be more impactful and longer-term: the extent possible. We are committed to invest in newer technologies and processes to PROGRAMME. enhance our energy efficiency.

The Carbon Strategy While developing the Carbon policy and Strategy, we took inputs from our stakeholders. Our focus is to adapt to the impact of climate change. The strategy is to work on the water, energy and waste management practices to minimise the climate change impact to the business. We are also working with our community in spreading awareness on the climate change, water management, sustainable agriculture and methods that support communities in becoming adaptable to potential climate impacts.

Hindustan Zinc office became Rajasthan's first Platinum Green Building.

Sustainable usage of natural resources is In December 2016, TSPL launched Club Hindustan Zinc office at Udaipur became key to preserving resources that can be Urja, an initiative that seeks to promote Rajasthan's first Platinum Green Building. available for future generations. In August energy efficiency and conservation through 2016, Skorpion Zinc conducted a Awareness, Education and Engagement. It achieved energy savings by 27% Sustainability Awareness Campaign at and water use reduction by 37%. Rosh Pinah Academy school for students The initiative seeks to involve studying from grade 1 to 5. The campaign 100,000 stakeholders, On-site renewable energy of 100 kWp is Bhogat Terminal, Gujarat – Cairn Oil and Gas business focussed on the importance of energy and installed that would generate 162,000 water conservation measures. including students, teachers, housewives, units every year, offset 15% energy We are evaluating options of formulating farmers and other significant consumers of requirement by Renewable Energy. This is internal carbon price suitable to the business A total of 60 learners and 5 teachers electricity, as well as academic institutions, in line with our short and long-term GHG and expect to complete this exercise soon. WE ARE COMMITTED TO IMPLEMENT THE CARBON POLICY were involved in the campaign. NGOs, Govt. Departments and Press clubs, intensity reduction target. The challenge is Company's presence in within three years. multiple commodity businesses like metal, THROUGHOUT OUR BUSINESSES. WE ARE CONSIDERING mining, oil & gas, power, port etc. FORMAL GHG REDUCTION TARGETS AND EXPECT TO

Vedanta is committed to this effort through ACHIEVE UP TO 16% REDUCTION IN CARBON INTENSITY FOR its own progressive energy and carbon THE BUSINESS BY 2020 FROM A 2012 BASELINE. Clean Energy programme that forms an integral part of our vision for sustainable development and is 16 OUT OF OUR 47 OPERATIONS ARE ISO 50001 CERTIFIED In addition to optimising our energy consumption, we are also looking at diversifying our energy portfolio. Mindful of the long-term impact of consistent with our business goals. traditional grid-energy, we are evaluating renewable energies like solar and wind.

27 28 29 A M C b a o E N d i s P O t B s W C d o t t p r n p i e e o o a a o o u e o a e p B v b v i e n n n n n r n n n d t i e h r r e e d d r s s e p t a g i o a p o l e a v i i c o a a g f d a o C A S E S T U D Y t x o e n a v y r t i r r p v e . e v l o i e d i d r m f i n I r n o 8 a s e c m r n e o s s g i a i g y , i t e d n t p s s d 0 u i , e a a O y o n p d g 0 b t t e s r t n n n h a t e n o o p e 0 i d o a d d t t o t e c n d h r I t l p , h a P W M W e h 1 o n d million ener first LOOKING HAS a ambitious in In THE r I g r s e i m S b v C a e i l c a n t i i b a u business o e b v e o a i D r n d M the i view i i n o u i a e c n n f i r l 1 t c d focus u o d e s n d e a t t r a phase, i M i m gy e i e N m s a , a l d o w i n c i v l s l m S A s short-term t t r 5 i a b a n i h e g INDIAN H n i y ' o t A s I i commissioned of o pr B m I t s n m a e i i r e u e a s u n r c on s n o n i r a e s d t i s i o h oject r i p i this, d b a h V STRONG m d t o r a l tar a d o arm y a e a K l a e h e we i put l a f a p l i t E f i c ( M n r l a s r v i s l C e p i c e get s p t a o I d e a n d e e v n d r s I HZL ting c r have r A e e a ) c r o at t in a o o o e E c . TO a s e b t s n I s p n b N o B r u r i x o t h . of r l t and s u the an e d o . o n c r m e y o O i r e N in c s n 3 s d o GOVERNMENT c in s a e t s P i a generating e p t u 8 set e n h a t m d E R s n investment e UL W place p i o s i , e r t n d e m years Rajasthan o scale e 0 t g e l p d p c n b in s h i n 0 p w a c r n d e o r up s e e G s T e u FOCUS a 0 a o r y e TIMA n o a m v Mar n e r s s l i l S a n n i h t a t e r e i s a s infr F e p e n p c a l d n a a l to up k d ( k i o o h a o E d e a H n e d t 16 e i a ch r p e f s h p S n n astructur a r n t t f come. y n s M t I o e E solar o e I y e n t t h A S e

o d , MW b h d r set g 2017. r r c o TEL a e b w o , of s i f a ) i e T e t m o n n f E b i u a t s p e a V r o i l a d C e o N INR g t y o s o y a n e r an ON d a h g ener o e s i solar m e n o n a s d r v In c i e Y e e k j v s A e a t e s r Y t e a s s u p e m g i p g o c r f i the n v c a for 800 s t r s r S r o i PRODUCE r o e e t m f e r t a E i o e gy s i o c e a t r a NON-CONVENTIONAL n t l i m l s n n y a y t a j h r e ' n . p e s y g UNDER s enewable t a t f e e n as h u H a d c i r U o o S l m o c n o t o R l n t b b o t l t v d o n t l d t a f d s a a o i e w i s o e m o c o o t n n u ( p w r i S I r v o e d f d o n a F d c m o N e k G v p a t t t g i e n C i a v o h v s t l h e n i i o d e r t e , e n ) f e a r e r d y . m r , p m ener p l r r g r b o o I ' s o ' s s e t n i n e could installed in Hindustan at ZincSmelter. The The Out of16MW b i m i s y e a o Y i t u THE a t n t a e o n s o i m y n y n r r s o 100 d w S t - o l gy o d t the a i s e B n d a e Z v n b t f i i o t x i e p l s s t . i i o e t s a n b v u 12 4 e m p r t r e i a e c i c - s d H i w o s e b o c s l l k a t MW be r LEADERSHIP district i o u e j m r l i s GW g u d e i h o B t t M s MW n s i n h s t n t c i o t i s s i e v y t n . o a e t e o ' u i on i w done). e s fi e n i a I p d x d r u o n r e e t c r p solar r d s i Zinc c n a r e e v N t i t d i POWER e o n a i o t b t pr i e s r waste m s o a y n r c n v u b l r r t I i e n i s u e a a of m d F l n s y p oject t i , 12MWsolarpowerpr t p j r p t C a d i o l i i M b u y in n e o E n t n l power r e a s i Udaipur e g n o t a i t v n n e y a the t n n ENERGY e b o e x o t land l d l o S p e i n o is s t p a d h p m s n r e . e district FROM m the o i OF s e t n t i pr i e par n o g e e n n c a a w H (both t oject t largest t s . t e MR. o p o Z cel, O a r t r n h L I O S A A P I B A V o r u h SOURCES e N N e of e j r e U L U SOLAR e E R N j F c u S l i B T I wher c at p m the A o D S O S v T D NARENDRA t i I Rajsamand B O o e n T p G u T o A I I solar U n d o Rajpura I N s a A F A r I N O a N B i m T c t N v pr u T O t E h I t e e U A e S n i L T N o I e c D S r R d ojects V t O A T s f S no a h S m A S i e o M t O energy s oject installed E M ENERGY. e I G y r T u R a B N s w A , b A R j r t M I other A o E F L a e i A o C AND E N o Dariba Y r K n l a E S O p I l d S A e d n N in D a N e E ar O T i x a R S M v s L r p t S H g a O e A h U B a e Rajasthan. a t S r B e A D pr T e n T i O activity s n MODI, I o R m T T i R U O IS s N I e I t p n oject L y V C i O e R H n of o r E . S o D A e D n v E n E A N A E n s I i t G . I r E N e S R T o V t W P M A n h I E R n S r E E N I E c e o e L m M S I S e I G S g s R N D u T e a r o S E Y n S n a Y m I G f d A m t N S . I a e c e D T m l r . T r G1 i l Y t t o a e i c 5 s k a s i e s . l R Several e I R G d T C p M r hosts 250bir E the 35hotspotsinworld.Thisar The Gamsber eturns, wehavetakenmultiplestepstoensur v h e h M A o N E initiatives a e m a n M n P s S t i p a o S e I i ( n t g l B n E , P a T u e E s s n n a o t O o m R t v r u I G a i s t e ar r s ds, 80mammalsand32r N h l t , S p o A n g mineislocatedintheSucculentKar e e h a i e n t s O a undertaken t D c s m T P r v i t U e v l h e I a a T i s e I e n N s n H A n s w t t ) V E t a s G P a i i n l n l p r F l g E v M g e E e R b i r c I a u by e i C o s i n s e R A u n d e a us s s m o d g O e f at n r e e d t o c e m n o A V ea ishometomor m d t edanta i e m eptile andamphibianspecies.AlthoughtheGamsber a n o C u n t l r o t h t f i T h n n o e l P e g i o I t o r S V t o to c o t u p u h e thatthisdoesn'tcomeatthecostofbiodiversity: r g c E r r r e g a ejuvenate r c i r n a u n e L r m t e l d n e Y T oo Biodiversityhotspotar i i h t m s n t e a o m e than6,000speciesofplants,(40%whichar t m e b K g i ) i i n s l n O T a u a i the i t i n n r i a m d o g d t e o i biodiversity i s o f B t e o B n H M h d o i e o o t P E B d p f c ( i t r o B v h i n n e i e o s t r I t d of s m a r O i i r u t v i the e y n ea -oneofthefourhotspotsinSouthAfricaand c e D a e t H r i s locations o a o I i n s t V t y s i t p E o R t we S g minepr I operate T t d r h 5 1 a o A e a Y R r a 9 0 p i s e i s t r , , l e c h p i 2 8 a v n r o o , e 5 1 e a omises tor g e onlyfoundher v in. l r c s 7 0 t e s o e I t t i d o S a p e i r Some u f v i a n n d l g e t e a K c d o h s i l n i i n y n l 1 t w i h s t s m a of 2 e 7 a y e . n eap richeconomic 0 a r , i A r 9 them n v d r 1 e 5 c e i n 5 n s h m 9 s i g a t e) andalso a g a p a d i ar n n n f n d l d o d i a g e: d fi e i o n t 2 c o r i t t i o a 0 e n p f s n n s 1 r t w c t i a 6 h n u l e e t e r e 30 AIR QUALITY SDG12 WASTE

Clean air is essential to maintaining the delicate balance of life on this planet - not just for humans, but wildlife, vegetation, water and soil. At Waste generation for the natural resources industry is inevitable, but its irresponsible disposal is not. With the right mindset, technology and Vedanta, we are committed to identify and manage emissions to air from point sources and from process activities associated with combustion. innovation, there is a tremendous wealth generation opportunity, in addition to the elimination or minimisation of waste.

As part of our ambient air quality monitoring process, we monitor Particulate Matter (PM), SOx and NOx. We also monitor lead emissions from our At Vedanta, two kinds of waste are generated hazardous and non-hazardous. The hazardous waste include used/spent oil, waste refractories, zinc operations, fluoride emissions and Polycyclic Aromatic Hydrocarbons (PAHs) from our aluminium operations as per our Environmental aluminium dross, spent pot lining and residual sludge from smelters, while the non-hazardous (high volume, low effect) wastes we generate Management Standard. We do not record emission of ozone-depleting emissions as this is not a material issue to our operations. includes fly ash (from captive and merchant power plants), jarofix (from zinc smelting), slag, lime grit (process residues from smelters and aluminium refineries) and phospho gypsum (phosphoric acid plant).

Performance Approach Performance I N I T I AT I V E

Our sustainability framework includes a Continuous and consistent efforts on waste in MT STACK EMISSIONS There was a 13.23% increase in SOx and Resource Use and Waste Management recycling are in progress, with special focus of 52.72% increase in particulate matter Technical Standard and supporting guidance senior management in tracking the waste SETTING THE Parameter FY 2016-17 FY 2015-16 emissions due to 32.79% increase in notes. We follow the principle of first reducing disposal rate in sustainable applications. STANDARDS FOR production in our Aluminium businesses. the waste, quantitatively as well as Much of our generated waste rock and Particulate Matter 11,056 7,239 TAILING RISK This year we have observed reduction in qualitatively (reducing the toxicity), and then overburden is utilised in secondary MANAGEMENT SOx 178,324 157,484 NOx emission because of the optimum performing the recovery and recycle (either construction work at the units. For example, in utlilisation of NOx burners installed at our ourselves or through authorised recyclers). raising tailing dam heights, and backfilling In pursuit of a systematic preventive NOx 44,935 49,464 power plants. The last stage is disposal in landfill or by mined out areas and exhausted mine pits. strategy, we undertook a preliminary incineration, using authorised, licenced and *There was a misprint last year in the values of NOx it was reported as 55,975 MT. HZL's state-of-the-art Central Research & risk assessment for tailings dams and secured landfills. We aim to remain The actual values are mentioned in the table Development Laboratory continues to ash storage facilities across our environment-friendly across all the stages. explore how to recover more metals from business, which identified nine of We continue to maintain a keen eye on our air quality management outcomes, mining & smelting operations, esfficiently to potentially high risk facilities. through following steps: minimise waste. WASTE TO VALUE These nine facilities were subjected to a Good Management Practices (GMPs) and pollution control techniques like bag Our power plants run on coal which leads to detailed Tailings Risk Assessment from third party expert organisation. No houses Electrostatic Precipitators (ESP) particulate and other emissions resulting INITIATIVE from naturally occurring impurities in the critical risks were identified. Where gaps coal. We have deployed hybrid ESP for This is being cascaded across our businesses were highlighted, business commenced Controlling and monitoring stack emissions of particulate matter at most of our removal of particulate matter that also and is also actively pursued by our Chairman implementation of corrective actions, operations contributes to removal of other impurities Mr. Anil Agarwal in his town hall addresses. including further analysis in two cases to attached to the particulate matter. ensure communities in close proximity are not at risk. Dust minimising processes like bag filters, scrubbers and dry fog systems with The fly ash, a by-product from the ESP, is For governance and ongoing water sprinklers are used while transporting extracted materials like bauxite, reutilised in making cement bricks and roads or is disposed of at authorised ash management, tailings related risks have coal, lime and alumina. Covered trucks with tarpaulin ensure no spillage or dust ponds in accordance with the local been elevated to group risk register generation regulatory requirements. and a tailings management workshop has been held for 40 employees across businesses. We have also developed Vedanta Tailing / Ash I N I T I AT I V E The total fly ash utilisation increased to Storage Management Standard in FY 2016-17 from that is being implemented by all INNOVATION & PROCESS IMPROVEMENTS FOR ZERO EMISSIONS 53% 47% in the previous year. businesses. RDG, BARMER

The Raageshwari Deep Gas (RDG) field in Barmer Basin has excellent gas quality WASTE GENERATION in million MT with low CO2 and no H2S. But hydraulic fracturing treatment is required for the Business FY 2016-17 FY 2015-16 recovery of oil and natural gas due to RDG's thinly laminated volcanic layer. High Volume & Low Effect Waste 16.57 11.90 During the reporting period, our Cairn WE HAVE Hazardous Waste 0.32 0.86 Oil and Gas Business adopted improvement in Frac Design like RECYCLED 51% propant density, tighter spacing, OF OUR OVERALL HIGH multiple fracs, and introduced VOLUME AND LOW EFFECT HIGH VOLUME & LOW EFFECT WASTE MANAGEMENT in million MT innovations like Addressable Switch WASTE IN SUSTAINABLE Firing System innovative methods to APPLICATIONS AND ARE achieve nearly zero emissions Fly Ash Slag Red Mud Gypsum Jarosite Total CONTINUING TO DEVELOP during well testing and clean-up NEW AND INNOVATIVE WAYS Generated 11.72 1.66 1.62 1.09 0.46 16.57 activities. TO INCREASE THE Recycled 6.20 0.98 0.13 1.0 0 8.38 This resulted in reduced operating PROPORTION OF WASTE cost by USD 0.96 million. Raageshwari Gas Terminal, Barmer, Rajasthan WE RECYCLE. % 53 58 9 100 0 51

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E d N a r r n foster initiatives t o r holistic o their equiring s r A h w c C l e s e I g e to e e t T a thir T ESIA c d Y r a and n y e a d I . t get C t risks m i r E the v o d- a o e L m S t 4 r d e E e e , 34 SITE CLOSURE Our commitment to the communities extends beyond the closure of the operations. A mine closure is in fact the beginning of a comprehensive and well-designed aftercare process that enriches not only the local communities but also the restoration of natural habitat and ecosystems. The mutually agreed solutions to the environmental and social risks identified through the Environmental and Social Impact Assessment (ESIA) at BUILDING the onset of every project also include the Site Closure Plans. Our Sustainable Development Framework includes a Site Closure Standard, which is continually aligned and updated to match the international good practices benchmark.

THE AFTERCARE FOR A BETTER TOMORROW | LISHEEN MINES, IRELAND STRONG From its initial discovery in 1990 throughout its planning, construction, operation and now closure, Lisheen Mine has been a world-class operation, implementing the highest international standards throughout the entire Mine life cycle. The commitment of Lisheen went beyond the implementation of the physical closure of the site. The mine aftercare programme ensures that a comprehensive plan is in place.

Lisheen Mines operations ceased in November 2015. In alignment with our sustainability standards we initiated the comprehensive Closure, Restoration and Aftercare Management Plan RELATIONSHIPS (CRAMP) and assigned a dedicated committee overseeing the implementation and progress of the mine closure plan. 2051

2021 Completion of aftercare 2016 Mine closure certificate; 30 years of aftercare 2015 commences (November) Re-watering of mine & general winding down of physical works Planned closure & cessation of production

THE REPORTING YEAR WITNESSED SIGNIFICANT PROGRESS IN CLOSURE PROCEDURES AND HAS CURRENTLY COMPLETED 72% OF THE SAFE APPROVED MINE CLOSURE PLAN.

A few milestones achieved are as under:

All potentially hazardous materials have been removed from the underground working areas

Re-watering of the mine which commenced on 31st December 2015 is ahead of schedule VEDANTA AND LISHEEN Stakeholder Engagement | Human Rights | Neighbourhood Dialogue and consequently, the groundwater level has increased from 200m below ground level to TOP MANAGEMENT HAVE 7m below ground level across the area that was impacted by dewatering A VISION BEYOND THE A good sustainability practice was initiated with the dismantling and re-erection of the CLOSURE OBJECTIVE concentrator building at a new purchaser site TO ESTABLISH A Maintaining and managing relationships is Areas that were at a risk of soil contamination are being stripped and the removed material “BIO-ECONOMY CAMPUS” – is being disposed of at the Tailings Management Facility A REPLACEMENT crucial to ensuring that we continue to drive All entrances to the underground workings have been permanently sealed through proper INDUSTRY THAT PROVIDES value for all stakeholders. and timely implementation of the capping programme REPLACEMENT JOBS AND

74% of the Tailings management facility has been capped and rehabilitated to farmland SUSTAINABLE GROWTH. pasture. The TMF will be fully rehabilitated by the end of 2017 We work hard to engage with our stakeholders,

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L thus C R ely N all ajasthan I c all T G D I employees dealt L (Code) made N our rights Y O t W E N operations. D T with. C R T of it ensur , L a and all U O T material W and H D our o es e it R E have ranks H that labour O S dir r E U U ect aspect r we obust G T high k and R N unions. H C comply I I f C on T acr indir mechanisms T P O E o our oss D N N Ther ect with R T priority r all O R employees, e A our all c A is H T r C zer I I elevant business like e O B list. T L o I N T r employee oom W S G I A O ith communities national B N O decisions. for O majority U U I human D R grievance F A I laws . N of G P N rights and and our Y F R operations pr immediate r egulations, I violations O ocesses, N R C M O I P L collective E in supply at F ther S O developing our eby N chain. S D G1 6 38 Collective Bargaining Supplier MODERN SLAVERY ACT 2015 We uphold our workers' right to freedom of association at all our operations. The collective Diligence bargaining agreements are negotiated and agreed by the management and union The UK Parliament constituted the High and High Risk categories w.r.t. MSA compliance. Commercial processes and representatives. The agreements include clauses relating to remuneration, allowances, working Modern Slavery Act (MSA) to tackle the compliance. Out of these 145, we terminated procedures of vendor selection and We encourage suppliers to adopt principles conditions, incentives and bonuses, health and safety, manpower productivity, etc. We aim to issues of slavery and human trafficking. our association with 17 suppliers with engagement will be reviewed going and practices comparable to our own. ensure that compensation for workers meets or exceeds the legal requirements. The law helps to enhance investor, immediate effect. forward in view of findings of the audit to Our significant suppliers and contractors employee and consumer confidence resolve systemic issues. Of the remaining 128 suppliers, 117 were Collective bargaining also gives us the opportunity to create a better and more productive work generally include well-reputed and well- and trust in an organisation by building identified for audit in the audit cycle of the environment in terms of health and safety, working conditions, remuneration, allowances, governed organisations, with robust human a foundation of strong ethical standards. incentives and bonuses. rights and fair practice mechanisms. We current financial year. They were subjected to Under the current framework continue to ensure due diligence by Last year, we had proposed a number an independent MSA audit by M/s PwC. implementation, we have put in place conducting inductions, screenings, of steps through which we are The site visit for the audit team involved WE HAVE A COLLECTIVE BARGAINING MECHANISM AT OUR VARIOUS a system for training of vendors/ inspections and audits on a case to case incorporating the Modern Slavery Act initial awareness sessions for relevant people OPERATIONS AND THE PERCENTAGE OF WORKFORCE COVERED BY THE basis. Any concerns raised by interested 2015 in our operations. Implementation on key MSA provisions, verification of suppliers, due diligence, and MECHANISM INCLUDE: parties on any of our key suppliers is of the compliance framework for MSA documents/records, and interviews. self-declaration. has been a prime focus area for our promptly addressed by undertaking an Audit findings are shared with commercial sustainability committee this reporting Our Supplier Code of Conduct and independent assessment. departments of individual businesses which Zinc Sesa period. Contract Conditions was also HZL International KCM Iron Ore The Suppliers' Code of Conduct is are directed to incorporate recommended updated with a provision on implemented as part of the terms and Based on our assessment, we identified changes and handhold vendors to meet compliance to MSA. conditions of supplier contracts across the close to 145 suppliers under the Very 47% 79% 86% 68% Group and all new suppliers are required to sign, endorse, and practice this Code.

At Vedanta, we have a Supplier & Contractor Sustainability Management Policy. Both the CMT BMM Skorpion BALCO Code as well as the Policy clearly communicate our expectations from our suppliers: to operate in compliance with 36% 86% 79% 57% all relevant legislations and follow our policies while executing work for or on Local Communities behalf of Vedanta.

The Supplier and Contractor We operate in diverse geographies and our groups, indigenous peoples, and vulnerable expressed invitation and Free Prior Informed Technical Standard further includes respect for the norms, culture, and heritage of tribal groups. To safeguard their rights, we Consent (FPIC) of local communities. Bauxite a Supplier Screening Checklist to local communities remains strong as ever. We follow the principle of Good Faith is abundantly available in other parts of evaluate contractor compliance have developed a number of standards and Negotiation (GFN), Informed Consultation Odisha and we continue our engagement relating to key issues e.g. legal abide by them. and Participation (ICP) and/or Free, Prior and with the State Government to secure Informed Consent (FPIC). alternative supplies to support the ramping- compliance, HSE management, This includes the Cultural Heritage Standard, up of our Lanjigarh Refinery. labour management, human rights Land & Resettlement Management Standard, and child labour. and Indigenous People and Vulnerable Tribal Groups Standard that have been developed in This checklist is used by operations to alignment with international practices including screen suppliers and contractors as part ICMM guidelines and IFC standards. Land Security of a prequalification process prior to awarding work. Acquisition and Practices At the time of engaging new suppliers, the We have Code of Conduct policy in place contract mandates the supplier to abide by Resettlement which educates our employees on Human the law of land and ensure that there is no Prior to 2010, to secure long-term bauxite Rights aspects. This year we provided 375,373 violation of labour laws. In addition, checks supply for our Lanjigarh Alumina Refinery, we man-hours of employee training on various at various levels are also carried out to Indigenous had signed a Memorandum of Understanding programmes on Code of Conduct & Human ensure the adherence to labour practices. Our employees are our best brand ambassadors Peoples and (MoU) with the Government of Odisha, India. Rights. The employees who received this As part of this MoU, the Government of training range from our on-site security guards For locations that do not have collective bargaining agreements, we have adequate systems and Vulnerable Odisha agreed that the Odisha Mining to our transport workforce, wherein we have processes in place for employee consultation, appraisal, grievance redressal and development. Corporation (OMC) - a government-owned previously identified some risks of child labour. We also have a mechanism to make the employees aware of any significant operational changes enterprise, would provide 150 million tonnes We emphasise that none of our operational like restructuring, mergers and acquisitions, expansions, etc. Notification periods for significant Tribal Groups of bauxite for our processing facility. The procedures violate the human rights of any operational changes are indicated in collective bargaining agreements and certified standing Supreme Court of India approved this bauxite individual. Based on our curriculum and the orders of respective entities. For example, in India the notification period is 21 days, 30 days for (IPs/VTGs) mining project in 2008. Namibia and South Africa, while in Zambia the minimum notice period is one year. module that is being followed by all Vedanta However, the Ministry of Environment and units, we have been laying a tremendous The Group's standards and guidance note Forest (MoEF) subsequently declined the stress on human rights training of on IPs & VTGs were rolled out to support the request for final clearance, following security personnel. implementation of our Human Rights Policy. concerns voiced by local communities, Ensuring Right Age for AT STERLITE COPPER, WE The total coverage in terms of training is The core aim of the standard is to enable our including several tribal villages (IPs) near 78.9% with regard to contractors and regular USE A FOOL-PROOF project teams to engage, negotiate, and Niyamgiri. Consequently, OMC could not employees. It is worth noting that across the the Right Job partner with the vulnerable groups in a commence mining. RADIOLOGICAL AGE Group, we generally work with private and manner that avoids negative impacts and In accordance with the Company values, we professional security companies (rather than At Vedanta, we take utmost care to ensure that our workforce, be it executives or contract labour IDENTIFICATION PROCESS risks for all stakeholders, especially the responded with numerous public local security forces or military). Our security are adults and willing to work. We have proper systems in place to strictly address child labour TO ASSESS CHILD LABOUR indigenous peoples and vulnerable tribes. and coerced labour across all our operations. Apart from this, we carry out periodic inspections communications reassuring the affected personnel are not typically armed and we have at our remote mine locations, where proof of age is mandatory for all contract workers. Our VIOLATIONS. Our standards provide special provisions for communities that we would not consider not experienced significant human rights Suppliers' Code of Conduct stipulates that all our suppliers also commit to the same norms. stakeholder engagement with marginalised bauxite mining at Niyamgiri without abuses involving our security personnel.

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ADDING AND G G N I

N ECONOMIC I R D A D H A SHARING VALUE S RESPONSIBILITY

We are in the business of producing commodities and supplying energy that impact lives and economies by serving for the essentials of creating infrastructure, like need for transportation and power, and also providing for the material requirements of manufacturing consumer goods. We are also excellently located: Vedanta operates primarily in India and Africa, countries that are endowed with an abundant supply of natural resources, and have growing economies waiting to leverage their potential.

With a business model of growth, constant value creation and improved operations, our vision is focussed towards building the wealth of our shareholders in a sustainable manner while minimising the effect of our operations on the environment, and maximising the benefits for the local communities.

We have trifurcated our approach to value creation.

Add value to the countries' Enhance value to our assets by Seed value across the workforce and the exchequer by unlocking their innovative and advanced processes community through extensive training, and long- natural resources and paying taxes that help us be more productive term projects and programmes that accelerate & royalties for our operations and competitive development and ensure equitable growth

ECONOMIC VALUE GENERATED & DISTRIBUTED (ECG&D) in US$

11.5 bn Revenue 591.1 mn Employee Wages and Benefits 8,842 mn Operating Costs 901.8 mn Payment to Providers of Capital 779 mn Payment to Government (Income Tax) 17.63 mn Community Investments 480 mn Economic Value Retained

Total Full Time Payment to CSR Direct Employees Exchequer Investment (By Business) in Nos. in US$ mn (By Business) in US$ mn

1,763 84 Economic Responsibility | Employees | Community 161 992 0.15 4.87 335 24 4,556 7.6 1,982 What we earn must be returned 1,614 25,035 2,928 6,000 17.63 for the greater good of society. 1.98 5,684 19 297 0.70 1,196 112 0.99 Pledging 75% of wealth to social good. 1,783 0.80 716 6,798 0.54

Zinc India Zinc International Iron Ore Zinc India Zinc International Copper India Zinc India Zinc International Iron Ore Copper India & Australia Copper Zambia Copper International Oil & Gas Copper India & Australia Copper Zambia Aluminium Power Oil & Gas Others Aluminium Iron Ore Dividend Others Aluminium Power Oil & Gas

43 44 ECONOMIC PERFORMANCE

We saw a better environment for our business in FY 2016-17. The sector benefited from a Employees combination of positive global economic activity, coupled with a progressive tightness of REVENUE EBITDA With over 70,000 employees, Vedanta is not only a natural resources company but also a human commodity supply. Moreover, the commodities that performed best globally - zinc and oil, are resources company. also the ones in which we are strong. This meant that Vedanta's own basket of commodities outperformed the sector generally. 7% 37% FOR VEDANTA, FINANCIAL RETURNS ALONE ARE NOT THE MARK OF A GOOD At Vedanta, we complemented the benefits of better market conditions by maintaining tight BUSINESS, WE ALSO CARE PASSIONATELY ABOUT THE WELL-BEING OF OUR

financial discipline. Our savings programme continued to drive down costs intelligently and 0 0 . . EMPLOYEES. WE INVEST IN THEM BY INTRODUCING FUTURE-LOOKING POLICIES 5 9 1 .

safely, through enhanced plant productivity and material efficiency. 4 7 0 0 . 9 8

, AND INNOVATIVE PROGRAMMES FOR THEIR ALL-ROUND PROFESSIONAL , 0 2 8 . 2 2 0 5 3 . 1 , 1 1 1

7 .

1 9 1

, DEVELOPMENT AND PERSONAL WELL-BEING.

WE DELIVERED A STRONG SET OF RESULTS THIS YEAR AND TOOK IMPORTANT STEPS 4 1 . 4 4 1 0 , 9 6 7 1 , 4

1 TOWARDS ACHIEVING OUR STRATEGIC OBJECTIVES. WE REACHED RECORD PRODUCTION 3 , 3 3 3 ,

LEVELS ACROSS SEVERAL OF OUR BUSINESSES LIKE ALUMINIUM, POWER, ZINC-INDIA 2 We provide them best of the remuneration and benefits in the industry, and uphold merit in (ZINC AND SILVER) AND COPPER - INDIA AND I AM CONFIDENT OF hiring as well as career progression. To nurture this talent and motivate them, we provide ample CONTINUED SUCCESSFUL RAMP-UPS FROM OUR WORLD-CLASS ASSETS. 2016-17 2015-16 2014-15 2013-14 scope for personal and professional development, and maintain a conducive work environment. ANIL AGARWAL | CHAIRMAN, VEDANTA RESOURCES PLC in US$ mn Revenue EBITDA

Here is a snapshot of our economic performance across the stakeholder spectrum. Dividend Industry, Vedanta businesses have regularly and Supply Chain Shareholders & consistently announced dividends as it gives a powerful message to shareholders on Lenders prospects and performance of the organisation. & Customers Society With a strong operational performance and a We believe in the philosophy of working and Against a target of US$1.2 billion savings supportive market environment, we delivered Constructive, lasting relationships are built growing with our investors. We recently in 4 years set in FY 2015-16, we delivered encouraging numbers for FY 2016-17. on the values of trust and good will. To continue maintaining a cordial relationship announced a new dividend policy at Vedanta In March 2017, Hindustan Zinc Limited with the community and the wider society, Limited and earlier in the year at Zinc India. US$800 million saving in 2 years. announced dividend of US$2.1 billion we regularly evaluate our impact on the host including dividend distribution tax. communities, understand community Together with its golden jubilee dividend expectations from us and find means to meet these expectations. DURING FY 2017, WE DELIVERED ON THE MERGER OF CAIRN INDIA paid in April 2016 and the interim dividend paid in October 2016, this is the LTD. (CAIRN INDIA) AND VEDANTA LIMITED, SIMPLIFYING THE GROUP We have been focusing on children's well- largest dividend outflow by any company STRUCTURE. THIS IS A SIGNIFICANT STEP FORWARD TOWARDS being and education through our in India in single financial year. programmes such as Nand Ghar, women ACHIEVING OUR STATED LONG-TERM VISION OF ALIGNMENT OF empowerment with the help of Subhalaxmi INTERESTS BETWEEN ALL SHAREHOLDERS FOR THE CREATION OF Vedanta Limited announced a dividend of and Sakhi projects, health through LONG-TERM SUSTAINABLE VALUE. US$1.0 billion, of which US$500 million construction of hospitals and conducting Mining companies that effectively manage supply chain significantly improve their profitability, was received by Vedanta Resources Plc mobile health camps, skill enhancement productivity and product quality. At Vedanta, where supply chain management affects both, through vocational courses, and farming and upstream and downstream, supply chain management is a material issue which directly impacts animal husbandry through various projects. our business. Managing it therefore is important not only from the risk point of view but also as an opportunity to demonstrate our commitment to the communities where we operate. Social investment VEDANTA'S OPERATIONS ARE IN SOME OF THE MOST REMOTE US$ 17.63 million Government GEOGRAPHIES OF THE WORLD. WE ENGAGE WITH OUR SUPPLIERS TO MAKE THEM UNDERSTAND THEIR RESPONSIBILITIES TOWARDS By contributing to the exchequer and the national economy, creating and supporting direct and indirect employment, and by purchasing goods and services, we have developed and maintained a productive and long-lasting relationship with governments across every country we operate in. ENVIRONMENT, SAFETY AND HUMAN RIGHTS AND SUPPORT 2.2 million THEM IN COMPLYING WITH THE INTERNATIONAL STANDARDS. beneficiaries We have not received any direct financial assistance from governments during the reporting year, TO STRENGTHEN OUR RELATIONSHIP, WE SOURCE FROM THE although as part of various direct tax holidays and similar exemptions, Vedanta did benefit by Tax US$204.8 mn during FY 2016-17. LOCAL SUPPLIERS WHICH BENEFITS LOCAL COMMUNITIES AND 217,000 Transparency GOVERNMENTS, CONTRIBUTES TO THE LOCAL ECONOMY AND villagers benefited through Transparency is the key to long-term REDUCES CARBON FOOTPRINT. safe water & sanitation initiatives IN FY 2016-17, WE CONTRIBUTED US$6 BN TO THE EXCHEQUER sustainability and Vedanta firmly believes in it. COMPARED TO US$3.2 BN IN FY 2015-16 THROUGH DIRECT AND Irrespective of our country of operations, we Local sourcing further helps in improving the skills of the suppliers and improvement in the local INDIRECT TAXES, LEVIES, ROYALTIES AND DIVIDEND. remain transparent and open in our tax affairs. infrastructure. We have an established Supplier Code of Conduct, Supplier and Contractor 124 We brought out our first Tax Transparency Management Policies, Supplier Screening Checklist that encourage business partners and toilets constructed Report (TTR) in 2015-16. The TTR contains all suppliers to adopt principles and practices comparable to our own. in13 villages In accordance with the UK Bribery Act, it is a Vedanta Board policy that neither the Group nor its the details of the contributions we made to subsidiaries will make donations or contributions to political parties within the United Kingdom the public finances in the countries of our The Supplier Screening Checklist, which is used by our operations to screen and evaluate or European Union. In India, political donations or contributions made within the context of operations. In 2016-17, we also plan to contractor compliance includes key aspects on legal compliance, HSE management, labour legitimate business operations are made only with the approval of the Board. Last year, no publish TTR on our website to maintain management, human rights and child labour. This checklist is used by operations to screen To read more about our community initiatives, please refer to the Community section on page 54. political donation was made by any of our businesses. accountability towards our stakeholders. suppliers and contractors as part of a prequalification process prior to awarding work.

45 46 E U L D A N V A G

Customers G N I N I

Vedanta is one of the major producers and marketers of the commodities across the world. We No cases of non-compliance with relevant R D understand customer's expectations and provide them with quality products they require in a regulations, anticompetitive behaviour, A D safe and efficient manner. anti-trust, monopoly and voluntary codes H A concerning the health and safety impacts of S EMPLOYEES To complement the quality products, we use advanced technology that ensures transparency, our products and services were observed or ease of access and value addition to suppliers. Our SAP supplier portal is highly efficient and reported. VEDANTA LIMITED RECOGNISED AS ONE OF THE secure method of communication between purchasing organisations and vendors. It also allows customers to send requests for quotations, vendor bidding and online auctions. Similarly, no significant fines for non- 'TOP COMPANIES TO WORK FOR IN ASIA' IN 2016 BY ACES compliance with laws and regulations Our products meet the required London Metal Exchange (LME) standards before entering the concerning the provision and use of commodity market. We continue to engage with our customers through pre-defined mediums products and services were reported. and channels to understand and meet their requirements. We also evaluate customer satisfaction through third party surveys. All these activities are centred around meeting customer's need in an appropriate manner.

Focus Area Exploring technology for better exploration DURING THE YEAR, WE INITIATED A Technology is changing the natural resources sector in a major way. It has not only increased operational efficiency and productivity, but also led to better safety of individuals working in US$30 million the sector. INVESTMENT FUND FOR IN-HOUSE At Vedanta, technology is being considered as one of the answers for major challenges such as R&D, SUPPORTING OUR WEALTH OF sustained competitiveness and productivity, innovation across existing operations and exploration KNOWLEDGE AND SPIRIT OF sites, and capital management. INNOVATION WITH MEANINGFUL RESOURCES Here is a snapshot of some of the technologies we have adopted: High speed drilling - surface & underground

Motorised directional drilling and 'leg' holes

3D modelling software to view drilling data The workforce at Hindustan Zinc

Data collection direct to digital Being a natural resources organisation, Their depth of knowledge helps us dig We invest in our employees across every human capital is at the core of our business. deeper and their ambition takes us higher. stage of their career, right from induction Our employees are key to our success and We, on our part, introduce and enforce and on boarding, to training and honing Deeper penetration through geophysical surveys sustainability. Their safety and well-being is future-looking policies and innovative their leadership skills. This not only helps us our prime responsibility. Above 70,000 programmes to aid all-round professional leverage the power of a dynamic talent pool, Multi-element geochemical analysis workforce across the world is not only our development and personal well-being of but also enables engagement and enhances hands and brain, but also our heart and soul. our employees. motivates employees to aspire for more. Going forward, we plan to focus on technologies such as 'Big Data' analysis & modelling, Core- scanning and Drone geophysics to open new avenues to more efficient exploration. Launched V-Connect, Organised internal Innovation platform - Eureka a landmark engagement growth workshops for initiative covering We are also actively incentivising our people to contribute their own ideas. One example is Eureka, our new digital platform to nurture and professional population incubate house innovation and technology, which is currently being embedded throughout the business. of about 1,200 It encourages our employees to come up with innovative ideas focusing on using technology to support mining in a sustainable way by reducing high performers to create waste and improving energy efficiency. 12,000 leadership pipeline employees TO DATE, AROUND 1,000 ideas HAVE BEEN SUBMITTED AND 200 Hired around The percentage of number Total training hours provided HAVE BEEN SELECTED FOR of security personnel having this year for all employees IMPLEMENTATION, AND received training in the and for all reported WILL BE ROLLED OUT 2,200 organisation's policies for employment category is employees across the ACROSS OUR OPERATIONS. human rights and their Vedanta Group across application to security is levels which includes 1.33 million maximum campus hires. 98.39% man hours. for the reported period. 47 48 SDG2, SDG10 OUR PRIORITIES I N I T I AT I V E Talent Management ACHIEVING GROWTH & Development AMBITIONS WITH I N I T I AT I V E At Vedanta, we encourage employee development by providing enriching roles through job Organisational THE RIGHT rotation, mentoring, coaching and career development opportunities. Over the years, we have MANPOWER deployed a range of talent management programmes and training initiatives and these have evolved over time and have helped us to remain at the top of our game. Growth ENGAGING WITH THE PEOPLE POWERED PLANT GLOBAL TALENT During the year, we organised Internal Growth Workshops across the businesses to identify, While natural resources companies globally have gone through a cycle of downturn, leading to To keep pace with the growing global develop and promote 'New Leaders' both in 'Technical' and 'Enabling' core functions. Our senior- demand for Aluminium, Vedanta Ltd. set muted hiring in the sector in the recent past, we continued to attract global talent during this time. During the reporting period, Vedanta most management team anchored the initiative, where the new leaders were identified through a up two aluminium smelting plants at Limited launched its 'Global Internship structured process. The identified leaders were then given accelerated growth opportunities by Jharsuguda, Odisha. The expansion of Programme' (GIP). Through this way of transformational roles for delivering business goals. the 1.25 mtpa smelter plant-2 was pivotal WE BELIEVE THAT FOR ORGANISATIONS TO GROW SUSTAINABLY, programme the idea is to bring on to this growth strategy. But while the board professionals who are currently EMPLOYEE TRAINING man-hours Areas of emphasis: IT IS IMPORTANT THAT ITS PEOPLE GROW - PERSONALLY AND plant and the required resources were in undergoing courses in Ivy League place, we needed quality manpower to PROFESSIONALLY. AT VEDANTA, OUR EMPLOYEE-CENTRIC colleges and who can share fresh Full Time Contract operate it as per the Vedanta quality Employees Employees FUTURE DIVERSITY & perspectives on business, and in the HUMAN RESOURCE POLICIES NURTURE CULTURE THAT FOSTERS standards. Finding the right talent is vital 1 LEADERSHIP 2 INCLUSION process benefit from the mentorship Male Female Male Female for any natural resource industry to ENTREPRENEURSHIP, INNOVATION, CREATIVITY, RESPONSIBILITY by leaders, on live projects. 536,837 82,923 712,255 14,499 implement the task, contribute to our AND DIVERSITY. profit as well as benefit themselves.

Taking this challenge head on, the HR VEDANTA'S GIP ENGAGES Focus Area: Future Leadership Our operations are spread across four their race, nationality, religion, gender or age. team at Jharsuguda devised a WITH PRESTIGIOUS continents and eight countries. At all these Most of our operations are in remote and comprehensive recruitment process: Internal Growth Workshops locations, we ensure that the ratio of entry lesser privileged areas and for our operations, INSTITUTIONS LIKE Talent Attraction The team Vedanta attracts the best talent given its core strengths of high quality performance, governance level wages meets or exceeds the legal we focus on recruiting the local population. HARVARD BUSINESS SCHOOL, conducted recruitment drives and and value-based architecture. The challenge is to develop and groom this talent to become requirements and complies with all applicable A significant percentage of the senior WHARTON SCHOOL AND engaged with students across highly competent professionals capable of taking up leadership roles in the organisation. We laws. With regards to gender, the ratio is 1:1 management and our employees are college campuses in India to ensure believe that the dynamism, agility and passion of our professionals will take us into the next and we don't discriminate in any way in terms THE LONDON BUSINESS recruited from the country in which our a skilled and vibrant workforce growth orbit. This led to the inception of Internal Growth Workshops. of standard entry level wages. operations are located. SCHOOL, ALONG WITH Robust Induction The internal We are committed to provide equal OTHER HIGH RANKED Promoting internal talent to leadership roles has been in the DNA of the Vedanta Group since Learning & Development team opportunity to our employees irrespective of long and has been key to our rapid growth. During the reporting period, Chairman of Vedanta INSTITUTIONS. designed a robust induction Limited, Mr. Navin Agarwal gave this process a shot in the arm by institutionalising a structured programme covering topics of process to identify, nurture and deploy young talent across hierarchies. Safety, Operations, HR, IT, Finance, In this programme, during the year, Excellence & Innovation initiatives Objectives of Internal Growth Workshops Total percentage of locally hired Senior Management Personnel ten dynamic and diverse students from for better and faster assimilation in London Business School were inducted. the organisation. Identifying young leaders Developing highly Providing growth through a structured process competent leaders & recognition The GIP is designed for high achievers Buddy Programme All the new to apply their academic knowledge, recruits were provided with a In each of these workshops there is a panel comprising senior executives from businesses and INDIA analysis and business acumen to some 'buddy' who would informally guide functions, which evaluates the talent and identifies suitable opportunities and leadership roles NAMIBIA AUSTRALIA of the most challenging projects in a and support them for the first year. within the organisation. SOUTH 93 real-life environment. The interns are AFRICA ZAMBIA Engagement In addition to recruiting 100 100 provided mentorship throughout the the right talent, it is important to Internal Growth Workshops: internship and their progress 67 78 keep them enthused. Several monitored. employee engagement activities; 1,200 300 20% high performers new leaders including women professionals The first batch of students commenced ranging from a welcome party, talent covered in over technical and enabling selected for higher competitions, sports tournaments their projects in June 2016 in the 50 workshops functions across Vedanta responsibilities duration ranging from 6 to 12 weeks. and cultural events to a platform for Every project had well-defined interaction with senior management deliverables, targeted outcomes and was introduced. learning opportunities outlined. Focus Area: Diversity & Inclusion

WITHIN A SHORT SPAN OF Women-friendly Policies TIME THE HR TEAM AT We believe in collaboration of perspectives the top companies to work for. Our support We invest significantly in developing and retaining key talent JHARSUGUDA HAS BEEN ABLE and ideas of diverse individuals that can result for gender parity has been reiterated by to drive innovation and efficiency within the business. in superior outcomes for the organisation. We becoming a signatory of the 'CEO Statement TO SOURCE A TALENT POOL OF are ever committed to have a diverse of Support' for the United Nations' Women's ABOUT 800 EMPLOYEES AND workforce and groom our employees to take Empowerment Principles (WEP) - ‘Equality ATTRITION RATE THROUGH FOCUSSED EFFORTS up leadership roles. The Company's Board Means Business' has 13% representation of women and has set HAS ENSURED THAT THE FY 2016-17 5.34% out a target to reach to 33% by year 2020. REQUIRED MANPOWER IS Our progressive women-friendly policies in THERE TO ACHIEVE THE the areas of internal growth opportunities, 9.4% This year, our HR teams across group companies initiated various programmes that included STATED BUSINESS GOALS. leadership development, engagement, FULL-TIME FEMALE benchmarking processes and policies. We aspire to imbibe best-in-class practices to become a women-networking forums and enhanced EMPLOYEES (FY 2015-16: 9.4%) 'great workplace' that attracts and retains talent. parental leave policy have made us the one of

49 50 In the reporting year, various Vedanta business launched unique initiatives to help women connect with other women in the organisation to share their experiences, advice and insights. I N I T I AT I V E S

LEVERAGING TECHNOLOGY - VIRTUAL CONNECT SESSIONS

During the year, Vedanta Resources Chairman Mr. Anil Agarwal interacted with more than 5,000 employees across 30 5 locations countries Mr. Navin Agarwal, Chairman Vedanta Limited addressing employees during a town hall

With a dispersed workforce, like ours, it is important that employees across the organization understand the larger picture and how they can contribute towards achieving the organisational goals. This year we organized virtual town hall meetings to share the business priorities and facilitate a two-way dialogue. Town hall has also enabled various seamless live sessions between Vedanta Senior Executives and its Networking Forums Parental Leave Policy employees using Personal Computers, laptops and mobile devices from any location through Webcast.

We have various networking forums at our Settling at work, post maternity leave is challenging and often becomes a reason for high women business locations. This year, our Iron Ore attrition rate across industries. Considering this, a new parental leave policy was launched by Business launched 'Tarang', a developmental Vedanta that ensures smooth transition. V-CONNECT PROGRAMME initiative for women professionals across The progressive and proactively introduced parental leave policy provides paid maternity leave for functions including Geology, Civil, Mining, V-Connect is a programme that connects our Talent (high performers) with 'Anchors' 26 weeks, adoption leave of 12 weeks and paternity leave of 1 week. For returning mothers, the Maintenance, Finance and others. Such (senior leaders) and provides an opportunity for Talent to discuss career aspirations, policy also provides flexibility to move into another job profile to manage work-life balance. structured interventions support improvement share their development areas and seek guidance on development journey. In the in gender diversity in our Executive journey, the aim is to keep the talent engaged and achieve better performance. Committee teams. Male Female This initiative is being programme-managed and supported by our consulting partner, Aon Hewitt. An app called 'Aon Lead' connects both the parties seamlessly to share, During this period, TUFemina was launched No. of employees 311 168 communicate and track their performance, participate in challenges and offer feedback. by Sterlite Copper, where women employees who have taken parental get an opportunity to learn from the shared leaves in 15-16 In Phase 1, around 1,000 'Talents' were identified across the Group Companies to be a experiences of Women Leaders. part of V-Connect. For this talent, we identified a group of 70 'Anchors' including ExCo No. of employees 297 157 leaders and our Chairman Vedanta Limited. Each talent has been mapped to an Anchor who returned to work and interacts on a regular basis - either one-on-one or in a group. In Phase 2, looking at after parental leave and the interests across the organisation, V-Connect has been further extended to entire who were still employed professional population of 12,000 employees. next 12 months after their return to work

Retention % 95.49% 93.45% SCORECARD FOR SUCCESS

Retention % is calculated basis the no. of employees who returned To bring out the best in our employees, we have put in place a Performance Scorecard for our employees and are driving this as a project and were in continuous service for next 12 months / no. of people BEST COMPANIES who went on parental leave. along with Aon Hewitt. This year we have created around 3,000 Performance Scorecards across Vedanta businesses and functions with FOR WOMEN clearer goals, measurable targets & defined performance levels.

Vedanta Ltd. has been recognised as one of the '100 best companies Empowering Women is integral for women' in India by to corporate philosophy, culture and Working Mother and AVTAR. environment of Vedanta

Health & Well-being SDG3

We are living in a fast-paced world, where keeping abreast with the changing times often costs one's health and well-being. Staying healthy infuses enthusiasm and confidence in the team and also boosts the overall productivity of an organisation. We look at overall well-being of the employee. Employee Engagement Therefore, we take immediate and corrective actions against any discrimination which could hamper the personal and business sense of the employee. & Retention This year, two such incidents of discrimination were reported in Black Mountain Mines. These were resolved and dismissed by the disciplinary committee. During the year, our Group Companies initiated a range of employee health and well-being programmes, some of them are mentioned below: Employee Engagement is one of the key pillars for us to drive business performance and productivity. Engagement initiatives are taken every year across geographies, levels and functions to keep our employees enthused and focused. Grievance Konkola Copper Mines (KCM) launched a 100-day wellness journey, Nchingilile Ubumi, a Zambian phrase which means “I will protect my health”. Under this programme, in addition We understand that collective bargaining offers the opportunity to build a constructive relationship between management and union Total number of grievances filed through formal to walking, a whole host of physical activities like aerobics, soccer, golf, netball, cycling and representatives. Negotiated agreements include clauses on productivity, health and safety, working conditions, remuneration, allowances, incentives grievance mechanisms 473 and bonuses. We have a collective bargaining mechanism at our HZL (47%), Zinc International (79%), KCM (86%), Sesa Iron Ore (68%), CMT (36%), volleyball were encouraged. BMM (86%), Skorpion (79%) and BALCO (57%) operations. Grievances addressed during the year 425 Sterlite Copper's e-clinic provides a telemedicine platform where the employees can get In addition to the engagement modules mentioned in the Stakeholder Engagement section on page 37, some of the major initiatives introduced or online consultation from an in-house medical team as well as other specialist doctors and taken forward during the reporting period were: Grievances resolved during the year 395 counsellors. 2,551 employees have used this facility to get timely medical consultation. 51 52 53 Our W the sustainability symbiotic cooperation Corporates W e E C

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l h I Y x p l t H m e s p a e additional N A o t t O U o intervention d o e MoU r r A A w s e s these M r u

i U o s i n n R h a S D t c u (Anganwadis) c i t i a r e R E a v e d s V i l l n I a e Y C t t r S N s N s with i l a I s O l v o t i N i ' i i a m i a Nand T v n m S n S C l o k e s , I o a p P p e T , B A h b services T A c n the a h w I a e i I O l T O e n c R a e c o A a e t e in l E t l E Ghars l D T d d o L d t h Ministry a U h e D i the I n e S - a I s c V b v E s r s v e O t acr s e N e a e e U h E 1 3 3 n S SOCIAL INVESTMENT U e S WOMEN EMPOWERMENT w . m such l s s r space e C o s d Ghar m e O e v S S e s o as e oss A p l T i m n 7 . S c I d f c p 41. u m 9 , A m A o T h t i e N H o r e a o of a D R * l e a 2 m O s L as w c R e n 2 s e l India. F D n conver n O o . a s i n t m l W , of e E c e thanonepr p D Y e o n m T t s primary p r e C 0 6 , u s 0 t d omen i A E G e I d childr n u E s m i 2 n n O n D m r g l r d V K . i 0 i a o c u o t Over v E M i i e t l E a u e 1 gence E n e u e u e 3 2 l n N 0 r s p i 0 l s 5 m L s A ' M t i t en's h U f i & y s t g O a - v T o o healthcar h c , o 1 pleaser e r d U o P c and o s a I Child o o P 6 F e u t e oject. g t n N u d 5 0 M A + v s s point learning o I S d r n e o E I o o b u u M d above T l E w D p n o e r c u Y Development N t t y b p p B a efer tothe , h e s o

u m o c for I . T e D d O m n a T s t r e i t n i d and E i v n T u R I n a n quality d and i O a e n t V r l H t G i e i s g i S g i number e p U w t E g s A A D l n entr i s r I r e e e u i L n S m o l health. T G t N s s a l h O i g a e s t i L I I o n t r e epr pr n P S o S a O r t t m r E to A eschool h v y U n N of eneurship a e T m D c l In N construct G u o n I e government O A e e m D - s FY i T c N N g a p E r r h E l e 2015-16, e D S R i education, a b a R . d P n o t C M i T c e r o I training. h e N s A 4,000 H n i o g a P R N f I o n o n S R R d E d e r O I d a ' D P E l l J U D E B B C Y O L T C U I S p D a O s b ( s o s r S s O C O c o T o t t t o u a l l ) a u e - L u e i a u c a L s r c c g k d e P r I I d i e v i r n o c a L e N K a r i c n m R d e o e l e n h l s A o m E e a s d m I t I o a o l C m n i V u B a o a d n p l n a b m P v O d d A n m r u O p e y t i e fi e R i d t u s a T L t s e u m n o r R s o l n t O c s L E n n b r . d m u i i h A m e t a e i i A - i S r J t e i a a n e n T e e y E n P G p r u B g l n i d d s t I e i n r t C E r e t s s V t O o ( n o s a g b d S y t O T G o v u g E u s R a ) t e f s b t p a a o i P c o N h i m e i A s E j g n m - n o e r L u s a l s T d o A e e e F n F 4 s a c p E u t l m a n m u v s I t s F Y b N a l O u e - r e t g m i d e c e O n l l l a P i D h s 2 t e t n N n n , C a a e n A R a 0 a t ( t t a t

p S a G t d d s n i j s 1 T W m R e o ) o r r R s u d o H . b e r 4 e S n u T a r p g I e s t a v r - . A w c N T h o n b s r e 1 x s A a i m t e i e l e p R H y 5 e t E i m l i c l s h y e o e i . i l y R n m w r n i n n s i t e a S t s i g e o t n , a H h s d a n i n n I n d P d ' 54 SDG4 Smart Class Y 13 schools in Goa and 7 schools in D Children's Well-being Chitradurga district of Karnataka U TAKING NAND GHARS Under the project, Vedanta is enabling T innovative learning through K-Yan, a portable

S TO THE NEXT LEVEL & Education device which converts any wall into an PROJECT NAND GHAR IS DESIGNED IN LINE WITH PRIME MINISTER OF INDIA'S VISION interactive teaching surface. This allows E Children are at the core of communities and society - their education, health and well-being students to experience interactive multimedia OF ERADICATING MALNUTRITION, PROVIDING EDUCATION AND SKILL DEVELOPMENT. determine the future of nations. Keeping this in mind, children's well-being and education have S content, virtual experiments, curriculum- always been at the forefront of our CSR initiatives. Ensuring the right to quality education for A based educational videos, and facilitates every child is an ambitious dream that can only be achieved through collaborative efforts across

C training for teachers. all quarters. A detailed baseline study has been initiated at Barmer to understand in We impacted the lives of almost 260,000 children through our Science Lab greater detail the advantage brought programmes, as well as through government schools across locations. by a Nand Ghar to the community 30 schools in Goa vis-à-vis an Anganwadi. The progress We support more than 100,000 children below 6 years across 1,900 The Science Lab incorporates a package of 55 and impact of Project Nand Ghar, Anganwadis through our preschool initiatives. different science interactive working models going forward, will be monitored mapped to the state educational curriculum, through a mobile application which will Our programmes are aligned with the government-led literacy & providing a forum for children to pursue their be one of the largest deployments of education programmes in the countries we operate in. natural curiosity and inventiveness. real-time data collection software, enabled through mobile devices and Our comprehensive approach to education covers every stage from preschool to higher education. tracking an estimated 120,000 children and 20,000 women start-ups spread across 11 states in India. EDUCATING THE GIRL CHILD

School Education We acknowledge that education is the single QUALITY most important factor to ensure gender The problems confronting higher education in India are chiefly to do with quality of learning, equality and empowerment. Our businesses access and infrastructure. This section provides a glimpse of the Group-wide initiatives we are EDUCATION have introduced a number of short as well as ENTREPRENEURSHIP undertaking in schools. We have developed a long-term programmes to ensure education of the girl child. The programmes are aligned 40-week intensive course Modelled on the lines of Nobel Peace Prize-winning microfinance organisation We run about 20 schools and colleges, most of them close to our operations. Over 11,250 Grameen Bank, women are provided end-to-end support for promoting students are studying in these schools. Given that most of these schools are in remote parts with the Indian Prime Minister's 'Beti Bachao, curriculum incorporating interactive entrepreneurship at each Nand Ghar through the following steps: of the country, they are contributing to bringing quality education within reach of all. Beti Padhao Abhiyan' (Save the Girl Child, e-learning, learning kits, critical Educate the Girl Child Programme). thinking and wall designs for preschool Other than running these schools and colleges, we also collaborate with existing government Mobilisation of women Handholding the women education at our Nand Ghars. This is schools, in strengthening learning, improving infrastructure, and provisioning of mid-day meals. Sterlite Copper's 'Ilam Mottukal' aims to the first time such a massive effort has for training through the ventures and Over 250,000 students in government schools are reached through these initiatives. ensure that girls are provided with quality been undertaken in India. providing marketing support school education in an enabling environment Providing basic orientation so that she can realise her fullest potential. on entrepreneurship, More than including identification of MID-DAY MEALS This project is impacting HEALTHCARE business opportunities & We realise the importance of proper nutrition for school-going children and contributing by Each cluster of 25-30 basics of marketing 1,600 providing mid-day meals in government schools every day. Over 68,500 school children were served fresh, nutritious and delicious meals every day through the three centralised kitchens 8,046 Anganwadis will have access to Mobilising credit without women benefitted from supported by us. Proper government-approved diet charts are followed to prepare weekly menus girls across 86 schools in Thootukudi district a fully functional Mobile of Tamil Nadu. seeking collaterals these training programmes in to suit the tastes and nutritional requirement of children. Medical Unit (MMU). MMU's The project, in its fifth year now, has provide essential primary healthcare Handholding in identification this year and 158 women have started their micro enterprise. resulted in 80% improvement in the services. During the reporting period, of local business opportunities, PROMOTING DIGITAL EDUCATION two such MMUs were operationalised. creating a business plan learning levels of girl children and 95% With the objective of promoting digital education and literacy in the rural areas, Vedanta pass percentage in the class 10 exams. Foundation & Vedanta Limited, in collaboration with the Directorate of Education, Government What started out as a pilot project in FY 2015-16, is now being scaled up on a large scale. of Goa and Government of Karnataka, have launched Smart Class & Science Lab pilot project for Vedanta Vidyarthi Vikas Yojana (VVVY) at the students. The aim is to get these students oriented to smart technology in a friendly manner. Jharsuguda has significantly improved the The following aspects of the project STATE DISTRICT COMPLETED pass percentage of girls from will be tracked in near real time basis: GREENFIELD BROWNFIELD • Attendance of children Rajasthan Barmer 50 - Udaipur - 2 18% in 2008 to • Improvement in learning Ajmer - 2 outcomes Uttar Pradesh Pilibhit 15 - 99.80% in 2016. • Training for women Varanasi 25 - • Income enhancement Madhya Pradesh Ratlam 5 - Till date 3,031 high school students for women Goa North Goa 1 - have availed academic support South Goa 1 - through VVVY centres at rural • Use of facility for health TOTAL 97 4 villages of Jharsuguda. and immunisation The project, in collaboration with NGO There was a target of 100 Nand Ghars in greenfield out of which 97 were achieved. For brownfield, there were 4 pilot projects. partner AJKA, is spearheaded with active involvement of the parents, village watch committees and trained teachers.

55 56 Addressing Health through Awareness Programmes

SDG3, SDG6 For all of us, when it comes to health, prevention really is better than cure - and especially so for communities living in remote parts. And the Health first step to prevention is awareness. Our awareness programmes, most often in conjunction with a health camp, cascade this awareness using + easy-to-understand local language idioms and medium. Our development programmes are devised to serve specific needs of the community. During the comprehensive business-wide need based assessment conducted two years ago, it was observed that access to medical and sanitation facility, and awareness of personal hygiene were the two As part of its week-long commemoration of world aids day, Skorpion Zinc helped generate greater awareness of HIV/AIDS glaring lacunae in rural India. In addition to providing support to local governments for ensuring access to Health & Sanitation facilities in remote locations, in FY 2015-16, we proactively extended WBCSD's WASH pledge from just our operational locations to encompass surrounding communities. The programme was attended by TSPL conducted 23 Health Awareness Sessions in Punjab which were attended by Drinking Water 'WASH' Pledge Implementation & Sanitation at Vedanta 1,374 people, approximately more than approximately across 12 villages. Improving water and sanitation infrastructure As a signatory to the WBCSD 'WASH' (Water & Sanitation Hygiene) pledge, Vedanta strives to School students were also provided for the nearby communities is one of the provide access to safe drinking water and promote best hygiene practices among its employees 800 400 600 with dental care products under this Company's focus areas. and the community. employees and community learners from all contractors members the 3 local schools. programme. In October 2014, Vedanta Group CEO, Tom Albanese, signed the WASH Pledge, followed by individual group companies' CEOs signing or endorsing the WASH Pledge in support of the 217,000 group's commitment. Progress on implementation of WASH pledge is monitored by the Group's villagers central sustainability team. Celebrating Health & Raising Awareness, benefited through access to safe water and Vedanta commits to implement access to safe water, sanitation and hygiene at sanitation initiatives. the workplace for all employees in all premises. One Day at a Time

Cairn O&G Business is providing safe drinking Good health makes every day worth celebrating. During the year, various Vedanta businesses celebrated and raised water for the rural population in operational awareness in conjunction with globally observed 'special days'. vicinity by setting up water kiosks using RO technology. This also involves implementing Curative Health Services one of largest community drinking water WORLD MALARIA DAY | APRIL 25 Sesa Goa Iron Ore conducted yoga Health camps/mobile health units in rural areas not only help in diagnosing and treating diseases project of its kind in India, in partnership with Vedanta Lanjigarh organised an awareness session on malaria along with a blood test camp in sessions for its employees PHED, Government of Rajasthan, where at an early stage, they also enhance awareness about the diseases and the means to prevent Basantpada, catering to a catchment of 12 villages. Over the years, through the Zero Malaria Drive, Sterlite Copper at Tuticorin, Tamil Nadu, around 330 water purification units will be set them. We join hands with the public health system as well as NGOs and hospitals that have a Vedanta has reached out to 50,000 people including pregnant women,infants and senior citizens. up to provide safe drinking water to the proven record of working in rural areas. While these camps mostly function as Out Patient introduced 'Upa Yoga' to relieve stress in community. Departments (OPDs), we refer complicated cases to nearby hospitals and, on a case to case basis, joints and muscles also extend support for treatment. WORLD TOILET DAY | NOVEMBER 19 MALCO Energy Limited conducted a The operating model will ensure Sterlite Copper dedicated three school sanitation complexes at TNDTA School, Meelavittan, Yoga session for over 750 school students of community ownership, usage of Other than camps, we run hospitals at various company locations, that provide TNDTA Primary School, Periyanagayapuram and R.C Primary School, Vadakkusilukkanpatti schools. renewable energy to run the units, quality care to not just the employees, but are often open to public at large. 15 schools in Mettur, Tamil Nadu doorstep delivery of water and reject WORLD AIDS DAY | DECEMBER 01 Cairn O&G Business encouraged 'desk During the year, disposal through evaporation pits. In support of the United Nations' HIV Prevention 2016 campaign to end the epidemic by 2030, yoga' comprising 'asanas' that employees across our businesses, more than Vedanta observed World AIDS Day by creating awareness among employees, contractors and can perform at their workstations 500,000 the entire community about the disease. people including employees, benefitted through Pink Drive these clinics, hospitals, camps and mobile BMM, South Africa health units. The Khai-Ma region in Northern Cape, South Africa is a hotbed for various forms of cancer and has inadequate access to primary and secondary health facilities. The Black Mountain Mining partnered with Pink Drive, a non-profit company to create awareness on breast cancer and make a difference in the Khai-Ma Municipality. The mobile clinic remained active through the year and Eye camps conducted 262 clinical breast exams, 52 mammograms, 152 pap smears and 85 PSA tests.

Cataract and Glaucoma are major causes of blindness in the Northern Cape Area. Black Mountain Mining (BMM) supports the World Health Organization (WHO) and South African Government's 2020 strategy which focusses on improving the health status by preventing illness Creating Medical Infrastructure and disease, and eliminating avoidable blindness. With the objective of improving medical facilities for the community and medical education in the The state-of-the-art hospital, being Between January and March 2017, BMM has helped restore eyesight of 197 people in De Aar, In Lanjigarh, under Project Swachhta, region, Vedanta has partnered with the State Government of Odisha to set-up a Government built as part of the college, will Calvinia, Aggeneys, Upington and Kuruman. In partnership with the Northern Cape Department Medical College in Bhangabari at Bhawanipatna, Kalahandi District at an estimated investment of Indian Household of Health and the South African National Council for the Blind, BMM ensures that eye surgeons provide easy access to medical 124 Latrines specialising in cataract removal continue to reach these remote communities. treatment for the communities INR 1 billion. residing in the region. were constructed in 13 villages in partnership Last year, the South African Institute of Mining and Metallurgy recognised this with Health and Sanitation Department. life-changing initiative by presenting BMM with a Health and Wellness Award. Vedanta will provide infrastructural support and the college is scheduled to be completed by 2018.

57 58 Y D

U HARNESSING THE SUN T SDG5 S TO PROVIDE WATER Women's Empowerment E

S While a lot has been done for women's empowerment in India and other developing A nations, a lot still remains to be done – C ONE OF THE KEY HURDLES IN ENHANCING ACCESS TO WATER, IS especially in the areas of women's education AVAILABILITY OF POWER. INTERMITTENT SUPPLY OF POWER IN and economic empowerment. DEVELOPING COUNTRIES MAKES IT DIFFICULT TO OPERATE PUMPS World over, the Self Help Group (SHG) THAT EXTRACT, PURIFY OR TRANSPORT WATER. HERE IS HOW VARIOUS movement has successfully and systematically empowered marginalised women through VEDANTA BUSINESSES HAVE OVERCOME THIS CHALLENGE. awareness raising, capacity building, economic empowerment and solidarity. At Vedanta too, we are working with women's Self Help Groups across several of our Since power availability remains unreliable in some areas of Barmer, we are locations. harnessing its abundant, year-round sunlight to power the RO plants. The THE SEWNIWALA first plant based on this pioneering initiative has been installed at PROJECT - CAIRN Sewniwala in Baytu Tehsil. This is India's largest solar operated DIRECT ECONOMIC IMPACT THROUGH SHG SUPPORT | FY 2016-17 O&G BUSINESS community based RO Plant. The plant's MNRE certified panels generate a power of 5KW and store the same in batteries – adequate for 8 Total number of SHGs 3,216 Cairn O&G Business, under a to 10 hours of plant operations. Memorandum of Understanding with Total members in SHGs 38,765 Sterlite Copper's Sakhi project helped create At Lanjigarh, under Project Sakhi, during the Public Health and Engineering The Sewniwala plant also serves devotees who weather harsh conditions 112 SHGs comprising 1,464 women members. reporting period, approximately SHGs engaged with Department (PHED) of Rajasthan, is Credit linkages amounting to and walk hundreds of kilometres to reach Ram Devra, a local pilgrimage livelihood activities 470 establishing 331 RO plants across spot in the Jaisalmer area. In order to make the plant self-sustaining in the

Barmer District. These plants, with long run, a nominal amount of INR 0.25 per litre is being charged from the SHG members engaged in INR 2.5 million capacities ranging from 1,000 to 3,000 3,815 local community. income generation activities INR 24.6 million were disbursed as internal loan to various litre per hour are being installed to (includes agriculture/animal members, out of the cumulative saving of husbandry/outsource activities) were mobilised through nationalised banks. provide safe drinking water To maximise use of this renewable source of energy, some of to more than the water purification plants are also being operated with No. of women who established micro enterprises 1,464 20 new SHGs with 242 members were formed INR 7.3 million. 1 million solar energy. (small scale business) by MALCO Energy Ltd. (MEL). Credit linkage of people living in Under this initiative, we plan to setup around Here is a snapshot of some select INR 5 million was facilitated through banks. SHG-related activities initiated by 800 villages. 35 solar operated plants our businesses during the reporting period: At HZL, the Sakhi Self Help Group (SHG) programme was re-launched in partnership At BALCO, under Project Unnati, 187 SHG with Saheli Samiti and Manjari Foundation. women were linked with various income The programme is working in a saturation generating activities like mushroom mode, aiming to cover at least 60% THE CHINGOLA cultivation, paper bowl making, snacks households in the chosen villages. PROJECT - KCM making, etc. Accordingly, this year Till date During the reporting period, In addition, the SHGs created credit KCM installed a solar powered 505 SHGs linkages worth bore-well comprising a water 1,144 SHG women were formed with about purification system in have been covered and Shimulala, benefitting 2,000 INR 6.9 million people. Being solar powered 6,600 resulting in around 620 women being makes the system 365 women women members. engaged in various income generating independent of the electrical have been linked to income generation activities. Till date, around 2,183 grid and thus, more activities. A few production centres have also women have been engaged through dependable. Looking at the been set up that are making garments, 196 SHGs across 45 villages. positive response, KCM has papad, spices, etc. decided to scale up the The high point of the programme project to 4 additional this year was the International communities, eventually Women's Day celebration across all benefitting 6,000 people HZL locations, in which over 6,500 in some peri-urban areas women participated. The celebrations of Chingola. consisted of discussions, songs, theatre, sports – all designed to reinforce women's self-confidence.

59 60 Y D

U ENTREPRENEURIAL SPIRIT T Skill Enhancement SDG4 S IN WOMEN

E Investments in human resource assets are the most impactful and long-lasting investments. Various national governments, mindful of this fact, have

S started putting great emphasis on education and skilling programmes aimed at making youth more employable. In solidarity with this impetus, Vedanta conducts high impact skilling programmes for youth (in partnership with government as well as non-governmental bodies), leading to A enhanced family incomes while also boosting the economy. C

DIRECT ECONOMIC IMPACT THROUGH YOUTH EMPOWERMENT 17,091 2,750 youths were provided youth linked to vocational skills training earning opportunities in FY 2016-17 in FY 2016-17

I N I T I AT I V E

VEDANTA SKILL SCHOOL TAMIRA MUTHUKKAL BALCO, CHHATTISGARH STERLITE COPPER, TAMIL NADU

Since 2010, Vedanta's Skill School at BALCO (Korba, At Sterlite Copper, the 'Tamira Muthukkal' project mobilises, Chhattisgarh), in partnership with International Leasing & motivates and trains unemployed, unskilled youth and facilitates Financial Services (IL&FS), has trained nearly 6,120 youth and suitable employment linkages. Since 2014, in association with Vedanta Ltd. at Jharsuguda, under the aegis of 'Vedanta Integrated Jana Jivika Yojana (VIJJY)', promoted Subhalaxmi Cooperative linked marginalised sections of society with the mainstream IL&FS, 811 youngsters have been trained as electricians, Tally Society (SCS) - one of the largest all women cooperative society in the region. The project provides capacity building support, economy. During the reporting year, it trained cum data entry operators and sewing machine operators. business development services (BDS) as well as financial services to its members for augmenting their diversified livelihoods. of students trained, have also found employment. SINCE ITS INCEPTION IN 2008-09, SCS HAS FORMED OVER 277 SELF HELP 947 youth. 71% GROUPS CONSISTING OF 3,226 MEMBERS IN 63 PERIPHERAL VILLAGES OF JHARSUGUDA, KOLABIRA AND KIRMIRA BLOCKS. IT HAS ALSO PROMOTED SESA TECHNICAL SCHOOL MORE THAN 2,392 MICRO ENTREPRENEURS IN ITS OPERATIONAL VILLAGES. SESA IRON ORE, GOA

Since its inception in 1994, the Vedanta-Sesa Technical School Here are some of the success stories: (STS) in Sakhali, Goa has trained SUSHMITA PATEL HIRAWATI PURUWA 1,341 youth Sushmita Patel, 32, lives in Keldamal village in Kolabira Block. Whenever Hirawati found time from her household Her husband used to work as a daily wage labourer with a responsibilities, she would help her family cultivate in trade skills like Machinist, Fitter, Electrician and Instrument Mechanic. Both STSs have maintained a 100% result rate in the sponge company. But the wages were both meagre and vegetables in the one acre of land they owned. In October Industrial Training Institute (ITI) trade examinations and have irregular. To augment the family income, Sushmita took up 2013, she decided to become financially independent and recorded successful placements every year. membership in SCS and took a loan of INR 5,000. With became part of an SHG at Bhimior village. She took an initial additional credit support from the cooperative, she gradually credit of INR 7,000 to start her own chilli and tomato Another unique initiative by the Sesa Iron Ore is the Sesa established herself as a good entrepreneur and started a cultivation. SCS, in partnership with Horticulture Department Football Academy (SFA). Established in June 1999 in Goa, on a All trade courses are affiliated with the National paper plate unit in her house. and Krishi Vigyan Kendra, provided her with all the necessary rehabilitated mine, SFA has till date produced 123 footballers at Council of Vocational Training, New Delhi and State training support to enhance the quality of yield. the national and international level. Presently 36 boys are under Sushmita bought a machine with a capital training in the four-year long residential coaching programme Council of Vocational Training, Govt. of Goa. investment of Today, she sells chilli grown by her that includes formal schooling. to a wholesaler at Bhubaneswar and INR 16,000 earns approximately YUVANTARAN MINING ACADEMY and started supplying different kinds of HZL, RAJASTHAN paper plates to wholesalers. INR 15,000 Underground mining is the future of mining, but there is a dearth of enough skilled manpower in this area. HZL is working to change this Her husband now supports the venture by helping in per month. and has initiated possibly the largest such initiative, focussed on preparing manpower for underground mining. Some of our early pass- procurement of material and selling the products. The family outs have even joined international mining companies, on the strength of this training. We are currently running 2 programmes - one is an income has now crossed INR 15,000 per month. intense 18-month residential training for Heavy Earth Moving Machinery (with 110 rural youth), and the other is an 8-month residential programme for Winding Engine Drivers (with 47 rural youth). Both programmes are being implemented in partnership with the Skill Council of Mining Sector (SCMS) & Indian Institute of Skill Development (IISD).

61 62 Y D

U PLACING WOMEN IN STRATEGIC T S THE DRIVING SEAT E

S GAMSBERG

A COMMUNICATION C Mining is still widely regarded as a man's profession. Thus, we see fewer women working in the mining areas. While setting up the Gamsberg project, we saw great potential in training the women from Khai-Ma region to work in an open pit mine as Haul Truck Operators. Roux Mining, our contractor and business partner, joined forces with us on a pilot project to provide the required training.

More than 180 applications were received. The shortlisted women were interviewed by a panel comprising representatives from Roux Mining management, Gamsberg Project HR, and the National Union of Mineworkers. 14 candidates were selected and given a 4-hour tour of Gamsberg. During this tour, they had the opportunity to ride in a 100-tonne Haul Truck while observing an experienced operator. Of these candidates, 9 women were ultimately selected for the pilot programme. The remaining candidates will be given an opportunity in the future.

The programme consists of theoretical quality hours of and practical training that includes 50 operating a Haul Truck. Learners are registered with the Mining Qualifications Authority and receive a monthly stipend during their training. Both Gamsberg Project and Roux Mining are responsible for learners' well-being in terms of accommodation, meals, travel costs and stipends. Through this initiative, we aim to change the way women are viewed in mining and open doors to one more economic opportunity for them.

SDG8 Agriculture & Animal Husbandry

Agriculture forms the basis of food security globally. For developing countries, agriculture is key to poverty alleviation and a key driver of growth. Vedanta promotes agriculture, livestock & livelihood development programmes in the countries of its operation, especially in India and Africa.

I N I T I AT I V E

UPLIFTING RURAL NAMIBIA, ONE GOAT AT A TIME In FY 2016-17, we assisted SKORPION ZINC, NAMIBIA 90,000 Communicating Constructively | Advocacy | Awards & Accolades The project, started in March 2012, aims to accelerate poverty eradication in Namibia by offering rural, underprivileged families a sustainable entrepreneurial opportunity through goat farming. farmers The Goat project was launched in collaboration with the Office of the Governor and the Nama for agriculture and allied interventions. Traditional Authorities after a needs assessment was carried out by the Ministry of Agriculture. It We operate in the belief that businesses are not is designed to be sustainable and to provide cascading benefits. In order to set off a cascading effect, after three years, some of the offspring are given to a second set of beneficiaries who, in isolated entities. In every decision, we emphasize on turn, replicate the entire process. This essentially creates a virtuous cycle that can endure for stakeholder dialogue and mutual respect. many years to come.

In FY 2016-17, the project added 5 new families, bringing the number of beneficiaries to 21. Each beneficiary receives 31 goats. More than 60% of the Our endeavour is to build a platform for transparent beneficiaries are women - a deliberate intervention to assist women-headed discourse on sustainability communication with all households in rural Namibia. our stakeholders. 63 64 65 o o i V e r H a the W W This analysts S S W n e n e n t n r c T p r g e e A d d g e a l I u u a STRATEGIC a stakeholders, R a t continually ensur T t v n t R d e n g h pillar a i i g s A i H t e s e t n M i a i i a COMMUNICATIONS o m o g c T i ' t to s n s n i A O e O e s e d o E f a - u n o n n e understand that L l G ' further e g N t o m O p c s L a a t I o e n o p I g t n C r h m S e measur g r S d e c extensive i a n e r m m V E T t a C c and t p e V r p a e A u s e t d O T r h n i p n r a e o a K y t i eflects a t H c n n M , make r e a n e a e b t the E s o n s a E t l u the e M e d f h ' H o s information v s t - a v i E E c h a gr n W r i O U e o n e n m impr outcomes e N r owth m t e s our o N o L o e s t V m n r a o i n D g g e I e r y ovements u e I t C a h n h E v R w commitment n R n t v and a o e A i i i c i R c r s O t m i c o o c h a a T o S is e n u t t . N a m i and i I value m O n o o a , l O available l t n n p c M e u r C o r i a V n N r h a e o u per wher n R n t a e E s s r , y p drivers d s l i d E e p H N n w p g i ceptions c e v u A f r i e o E n T e o ever t o s h o n T s r acr u to a L , u s u g o I a r c e E n r P A m r h d e of p a oss d becoming s necessary i S p t i u t N f S t e c o E f a i the h r e m r k d p Y s of U m i D r r e e t e eports, e e o a N s h a n l v S s our company n y R o t e e o t d e E c l l . n c P d o r E o o o i W R communication e p a c m . R n u I r l r m i G N i s t r t m websites, a t O i . y i n i e c n I F u mor e i n a A E s v . n n t l s O e , i i S C u t c s s c s e t a s R . u , T e o u s t D l i r C t e C o a I transpar s u i s V v n r pr O r a E e e e a n i E r s c esentations b M a s d O r c e a L n o plan w a s d Y s r B U e s e i s d c s d g A t a R t A e h a ent, i o d thr o T r e k N n e n s R e s t d s ough M f h a t D e E a h o k t purpose-driven e o k e and a P l I d d e T v h S a b e U h e o l R a R l r o a l d r d T digital c e l r e A d E i obust k e x A f l f e e p r e f P N s T r r v e r o a e s ( R c I S c m p n n t O u E a communications, e t t P mechanism s s t c s o t N S i t A t o t o a p a r m n E k u k e . R e s m e r e N . h a E h and r T . t o s o i T T h N , o l l o d e d A s n g u e T e a g T r p e r r l esponsible s o L to s t p a I . h . a Y O n l W T e i l gauge e d i h r e s , r N C i s g w that s t p , O o e , f e e e u o e m M r a M r g i n t o r its help p h r e s d a I e M l u o T p o i ef r r c corporate y e n h s I a U e fectiveness e i t investors G l t c r e l h y e N o s c A a n a r h a t g g s I T a n t s C a t h l d e h l E n e e A s e i s n s s n o R a T g t and s c t h e citizen. I i E i o o among e e s S u n t y K r w ) S i t h , * engagement r Investors eturns D u I

r STRATEGIC i n N I V s I A m t m e engage a pr business, subsidiaries, Committee's institutionalise DESHNEE K EUAN ROMA TOM PHILLIP ANIL V g n h p e n COMMUNICATIONS h A expected. cultur t a i e N evention, e h c l d g e E e n T C C o e c and a a C a s a Y i n n g r fi t d V D g o A e o ALBANESE, g AGARW t I c e e m p o a n MACDONALD, e r mechanism m a BAL Z lenders m u o A f in e T p r i TURNER, of O t e r s e e s key e h t a E n an i a O O n t n T N n c n e NAIDOO, safety c r s and W t I o V g t O y a e e and s w ' edanta on-going achievements t m focus v p s v u e ANI, V T A w e AL, o a e e S c m a s A constantly r u i to A n r h u m s transpar t i the i , l h o t e s t T at d a , , N t d t d identifying Chairman s Chief V p e Gr i ar a such Pr b n , T H N M V o e

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e eports t pr embedded s shed i r r L o e a y o is O o s o n the evention u f . n a i e deployed, n t n l s T c d t f d d P o how r y h a o light l o company u n i a last m t k and s n s M d o n e h t . underway d r t o h s D t crucial h y o u year u w on s e E e other b to s t m within k c B t a t o n a a a o k a N the and fatality d s i o i e n l a n to e e i w and r h e a r d d it T i o focused s s b m g . . o was what the u l i to h d l T o m p i its t t e D h r s y d e e develop r . e overall a to a a A o t ar n e e b f d n s e o Y t t o o u h i the r t n e n e . 66 GOVERNMENT Academia Academic institutes and industry working together is a two-way partnership. The industry gains expertise in areas such as innovation and research, and trained graduates who are better equipped to enter the business world, the academic institutes benefits from the funding, financial benefits, and The natural resources industry is highly regulated and it is important to engage with the Government on project progress, local challenges, enhanced education opportunities for the students. community developments and other processes for formulating fair policies. To ensure community development through Public-Private- Partnership model, Vedanta proactively engages with the local and national governments of the geographies it operates in, on a regular basis. Media VEDANTA BAL CHETNA ANGANWADI (VBCA) PROGRAMME The media is a source of information that helps civil society stay abreast with and to shape the public policy agenda and priorities. Our media strategy Hindustan Zinc signed an MoU with Government of Rajasthan to support 3,055 Anganwadis in 5 Districts. is to provide credible information consistently to shape the true brand image of Vedanta among our stakeholders and builds trust through transparency. We regularly communicate with international, national and regional news channels, and the print media leading to a wide coverage of Vedanta's performance and goals. ACTING AGAINST CATARACT Vedanta has strategically positioned itself as a low-cost producer equipped to face the commodity downturn and support the nation's economy Black Mountain Mining (BMM) supports the World Health Organization (WHO) and South African Government's 2020 strategy which focusses on through the significant contribution to the exchequer. improving the health status by preventing illness and disease, and eliminating avoidable blindness.

CONTRIBUTING TO HARNESS AND CONSERVE WATER I N I T I AT I V E S The Mukhya Mantri Jal Swavlamban Abhiyan (MJSA) has been launched by the state government of Rajasthan to ensure effective implementation of water harvesting projects and water conservation activities. Our businesses in Rajasthan have wholeheartedly supported this campaign and have helped construct a number of community water conservation projects. GAZING IN THE MEDIA MIRROR KEY STORIES IN THE

While media is a gateway to all our stakeholders, one of our vital constituencies is the REPORTING YEAR media itself. During the reporting period, we conducted a dipstick research about Vedanta Chairman, Mr. Anil Agarwal, honoured with 25 key journalists and analysts of the natural resources sector. The findings were very by Bihar Chambers of Commerce and encouraging. Industries for his contribution to the STRATEGIC ENGAGEMENTS natural resources sector globally 80% 36% 36% 48% Year-end results, production results and respondents mentioned CSR mentioned credible indicated regulatory the Annual General Meeting Constructive competition is the need of the hour in the Natural Resources industry. We actively MAKE IN ODISHA CONCLAVE gave a bright as one of the management hurdles as being a take part in various global and local industry fora to communicate our vision for the sector as well BHUBANESHWAR, ODISHA outlook of positives of the as a positive of key challenge Announcement of Hindustan Zinc's Vedanta company the Company for Vedanta Golden Jubilee dividend, which was the as keep abreast with new perspectives. We also regularly interact with academia for strategic The 'Make in Odisha' Conclave was held in largest ever dividend paid by any inputs and with the media to raise the industry awareness amongst the public. Bhubaneswar with the key objective of company in the private sector in the showcasing the manufacturing prowess of the Indian history State and the investment opportunities Industry across focus sectors. Vedanta took active part SOCIAL MEDIA - FAST EMERGING AS THE Letter of Award' for Redevelopment of in the conclave with a centrally-located stall Mormugao Port highlighting group-wide achievements in WORLD ECONOMIC FORUM 2017 | DAVOS ENGAGEMENT TOOL OF CHOICE sustainability, CSR and business. Launch of 'Eureka' and the creation of a Mr. Anil Agarwal participated in the World Economic Forum, Davos 2017, where the focus was Social Media has gained traction across the group and among our leadership team. Daily dedicated fund to augment innovative around the 'Fourth Industrial Revolution', the role of technology and its potential to transform the engagement helps highlight the group's achievement, trigger insightful conversations and practices & technology future of mankind. Every year, the world's best minds and global leaders assemble at Davos for the PETROTECH | NEW DELHI maintain engagement with stakeholders. All group companies have a presence on social World Economic Forum annual meeting to discuss the state of the world. The 12th edition of the flagship event of media platforms. Appointment of CFO Arun Kumar as India's hydrocarbons sector was held in Director of Vedanta Board and Bhumika INDIA ECONOMIC SUMMIT | NEW DELHI New Delhi. Cairn O&G Business' stall /VedantaResources @VedantaLimited VedantaResources Sood as Company Secretary featured scale models of the Cairn Enhanced Mr. Anil Agarwal co-chaired the India Economic Summit in New Delhi. The theme of the summit Oil Recovery process and Water ATM Vedanta's Global Internship Programme this year was 'Fostering an Inclusive India through Digital Transformation'. More than 600 delegates initiatives, eliciting tremendous interest Our senior management as well as flagship programmes are active on Twitter. was one of the key HR initiatives from over 30 countries including political leaders, top policymakers and CEOs participated in the among the visitors which included Union summit organised by World Economic Forum and Confederation of Indian Industry (CII). Minister for Petroleum and Natural Gas, Leadership participation at global and Mr. Dharmendra Pradhan. national events THE MINING INDABA | AFRICA Awards won by Vedanta and its various Mr. Anil Agrawal and CEO Tom Albanese participated in Investing in African Mining Indaba. It is an NATIONAL CONCLAVE ON MINES & businesses annual professional conference dedicated to the capitalisation and development of mining MINERALS | RAIPUR interests in Africa and currently the world's largest mining investment conference and Africa's Projects on literacy, skill development largest mining event. Vedanta Sesa Goa Iron Ore was awarded a @AnilAgarwal_Ved @NavinAgarwal_V @DeshneeNVedanta @NandGhar and the launch of Nand Ghar 5-Star rating at the National Conclave on Mines and Minerals at Raipur for its Codli INTERNATIONAL MINING & MACHINERY EXHIBITION | KOLKATA, WEST BENGAL and Bicholim mines in Goa. This was part of The 13th International Mining & Machinery Exhibition (IMME) in 2016 featured 290 exhibitors, with the Star Rating Scheme implementation of participants from countries such as Australia, China, Germany and Russia. At the event, Vedanta the Sustainable Development Framework showcased its CSR and Sustainability initiatives. This immersive experience was applauded by (SDF) formulated and finalised by the numerous visitors, ranging from company directors and government officials to students and Ministry of Mines. CIVIL SOCIETY prospective vendors.

Civil society plays multiple roles in the nation's governance and development agenda alongside governments and industry. They are facilitators, GLOBAL INVESTORS' SUMMIT | MOMENTUM JHARKHAND conveners, innovators as well as service providers, advocates and grantors of societal license. We strongly believe that civil society is a glue that Mr. Anil Agrawal announced various business and social initiatives for the state, at the binds public and private activity together in such a way that it amplifies the common good. With an overarching mission to serve society, we are Momentum Jharkhand Global Investors' Summit. The summit aims to establish Jharkhand as a always eager to engage in a constructive dialogue and take feedback. Our recently conducted third party dipstick assessment with various premier investment destination for both foreign as well as domestic investors. stakeholders including civil society showed our improvement in creating harmony among our local communities in India, South Africa and Zambia.

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ENGAGING WITH COMMUNITIES O I T

We work in some of the world's most remote regions, and we have a responsibility towards the A C I local communities. We follow a two-pronged approach: We undertake CSR activities to create a C I

positive social impact, and we proactively engage with the community to resolve trust deficit N G U

issues, if any. We listen intently to concerns of the community, evaluate and address them. E T We also share factual data on how the community will benefit economically, socially and M A

environmentally through our projects. M R O We have close to 100 Nand Ghars operational across 5 states in India. These new-age rural T SDG17 S C ADVOCACY preschools attract local communities and bring in effective dialogue with all stakeholders. The project also leverages digital programmes and engaging visuals, in solar-powered centres that provide uninterrupted electricity. The women and children who come to these centres lead a healthier life, learn new skills and use the communication tools that empower them.

VEDANSH - A NEWS MAGAZINE DEDICATED TO AND CREATED BY PARTNER COMMUNITIES

In Odisha last year, Vedansh was launched to create awareness on developmental initiatives, technical excellence, innovation, sustainable efforts, commitment of our workforce in Lanjigarh and Jharsughuda and our commitment to the state and nation to a wider section of people. 'Vedansh' - our As a sector leader, active industry advocacy is a responsibility of Vedanta. We invest resources to set the narrative for the future of the natural development diary, is telecast every Sunday on News 7. News 7 is among the top two Odia News Channels of Odisha with a wide viewership base resources industry. globally viewed by Odia community. We have a deep understanding of the issues that affect the industry including the strengths, weaknesses challenges and strengths of the sector. Over the years, we have nurtured a team of experts who are specialists in advocacy across specific stakeholder segments - right from shaping of For more information about our community-centric initiatives and programmes, please refer to the Community section on page 53. public policies to informing the community about our efforts in education, health and livelihood.

EMPLOYEE ENGAGEMENT I N I T I AT I V E GLOBAL NATURAL RESOURCES CONCLAVE 2017 | DELHI Our employees are our brand ambassadors and it is vital that they remain updated about the vision, mission, goals and progress of the Group and its businesses. We engage with them on a regular basis through town hall meetings, e-zines, newsletters, social media, group interactions and the newly introduced V-connect app. Our engagements have a threefold objective: receive on-ground feedback on stakeholder expectations, listen to Network 18 & The Confederation of Indian Industry (CII) organized the first 'Global Natural their views on ongoing initiatives, and receive suggestions for new ones, plus keep them informed about the organisation's actions and plans so Resources Conclave', on 4th & 5th April 2017. This event was curated by Vedanta that they feel connected and can hold informed conversations with stakeholders. Resources. This initiative aims to position India as a formidable global player in the natural resources landscape. It will, therefore, enable an opportunity for global business to partake of the untapped opportunity in India. It was endorsed by the Indian Government's Ministry Newsletters & Publications of Environment Forest and Climate Change, Ministry of Mines, Ministry of Steel. Here are some of the Group-wide and business-specific newsletters that help us engage with the employees in a transparent and timely manner.

Pulse The Group-wide HR newsletter covers a plethora of topics like messages from the top BALCO Manch The BALCO newsletter leadership, engagement initiatives across the group, updates on various workshops and highlights the impacts of various CSR performance indicators and future plans keeping our employees abreast about current events. activities, the awards and accolades won by the business and shares the leadership's Weekly Buzz An E-Newsletter published by Vedanta Limited Jharsuguda, it provides vision for future. employees, a platform to share interesting aspects of their professional and personal life. Konkola News The KCM newsletter includes Zinc News The in-house newsletter of HZL includes the Chairman's message, town hall updates, the CEO's message, updates on technology, updates and impacts of various CSR activities and the seminar/workshop calendar for the month safety and training, and testimonials and case ahead. Its section 'Ask for Zinc' highlights little known usages of zinc in everyday life. studies of employees.

CORPORATE CAMPAIGN Panel Discussion on Sustainable Development (L-R) Prodipto Ghosh; Ravichandran Purushothaman; Andrew MacLeod; Pierre Gratton; Anuradha Sengupta; Amita Prasad; Mark Wiseman; Kirit Parikh

A strong brand effectively achieves acceptance among all its stakeholders, and builds employee Lending support to the Conclave were domain experts, country partners and global think tanks active in the space. These include The satisfaction and retention, adding value to the core purpose of the organisation. On March Energy and Resources Institute, World Economic Forum & World Business Council for Sustainable Development, International Council 27, 2017, we launched our corporate advertising campaign, to create awareness on the positive on Mining and Metals, Federation of Indian Petroleum Industry, among others. impact of natural resources in the lives of every individual.

The statement 'Transforming Elements', in the form of a tagline, is the single most visible The two-day Conclave also built scale and gravitas through collaboration with Canada sharing the 'Country manifestation of our diversified natural resources business which produces metals essential to Perspective' at the Conclave. The Conclave saw proactive collaboration from 30 countries and industry leaders everyday life, infrastructure, technology and ensuring self-sufficiency of any country's economy as well as the most influential Indian and global names in the natural resources space spanning all sub-sectors and contributing to a sustainable future. The campaign plays a significant role in augmenting including oil & natural gas, mining & minerals, power, metals - aluminium, copper and zinc, etc. Vedanta's brand equity in the society at large with the pledge of dedicating 75% of the wealth created to social good.

69 70 S CORPORATE N

O Hindustan Zinc received a commendation for I

Significant Achievement in Corporate & T Excellence, at the CII-ITC Sustainability A E E

C Awards 2016 R C I C I U N N G S A U

E INNOVATION & TECHNOLOGY O R

T AWARDS & ABOUT M Team TPP (2400 MW) won the 'IPPAI L U A C M S

R INNOVATION AWARD' in Energy S I S O T Conservation and Alternate Usage of D A S C ACCOLADES fuel category THIS REPORT

Sustainability is an integral part of our business strategy and the awards and laurels that are bestowed upon us every year, distinguish us from the This is our eighth Sustainable Development Report and coincides with the publication of our Annual Report. competition and validates our leadership in the market. This year too, we were recognised for our excellence in various spheres of sustainability. Combined these two documents provide an overview of our approach and our achievements in FY 2016-17, outlining our actions over the past year to achieve our mission to be a world-class diversified natural resource company. SUSTAINABLE DEVELOPMENT & CSR ENERGY CONSERVATION ENVIRONMENT

Reporting Scope and Boundary Covering the financial year 2016-17, the report is structured around our Sustainable Development Model's pillars of Responsible Stewardship, Building Strong Relationships, Adding and Sharing Value, and Strategic Communications.

All group subsidiary companies except Fujirah gold have been reported in full as though they were 100% wholly owned as we recognise the level of control and sphere of influence the Group has over these operations.

The aspect boundaries and content of this Sustainable Development Report have been defined using reporting principles prescribed in the GRI G4 guidelines and is prepared 'in accordance' - Core criteria of the Global Reporting Vedanta Limited won in the 'Mining - Metals Cairn O&G Business was awarded the 'Game Sterlite Copper bagged '4 Star Rating' Initiative (GRI) G4 Guidelines. and Minerals' category at the Dun & Changer - Oil & Gas Company of the year' Award in the CII Southern Region Bradstreet Corporate Awards 2016 by Petroleum Federation of India - Environment, Health and Safety (EHS) We followed the approach described in GRI implementation manual for designing the report content. The material PetroFed, for its continuous outstanding work Awards aspects that have been covered in the report are clearly brought out in the materiality matrix. In the report, the DMA CII survey ranked Vedanta among Top 10 on Enhanced Oil Recovery project. most Sustainable companies in India Vedanta led the India Disclosure Index 2016 (Disclosure on Management Approach) describes the Company's approach to the subjects relevant to it and the Jharsuguda CPP unit received the 'Excellent and emerged as the only company in the indicators provide details on performance on the specific subjects. Cairn O&G Business was awarded the 'Special Energy Efficient Unit' award at the17th natural resources sector to achieve full Technical Award (Corporate) - Sustainability National Energy Management 2016 score across all disclosure parameters There are no specific restatements of the information provided in the previous reports and no significant changes in and Corporate Social Responsibility' at terms of acquisition and physical boundaries from the previous reporting periods in the scope and aspect boundaries. Petrotech Sterlite Copper received the 'Energy Efficient BALCO's Bodai-Daldali Mines in Kabeerdham Unit' Award at the 17th National Energy were proud recipients of the Greentech The report is also mapped to the United Nations Global Compact (UNGC) and United Nations Sustainable Institute of Directors commended Talwandi Management Award 2016 held by CII GBC Safety Gold Award Sabo Power Limited's efforts towards Development Goals (UN SDGs) principles. It reports our approach and disclosure towards triple bottom line principles - ensuring a sustainable future Hindustan Zinc received the much-coveted Sterlite Copper was awarded the people, planet and profit over the financial year 2016-17. SAP ACE Award 2016 for its Hindustan CII National Award for Excellence in Water Hindustan Zinc Limited won in the 'Non- Zinc - MII Project Management, for its zero-discharge plant Ferrous & Precious Metals' category at the with storage pond Dun & Bradstreet Corporate Awards 2016 BALCO awarded as the Excellent Energy GRI G4 Content and Disclosure Document Efficient Unit at the 17 CII National Awards Hindustan Zinc won the CII National Award The GRI G4 detailed content index and Vedanta GRI G4 Disclosure Document FY 2016-17 includes the core and additional for Excellence in Water Management, 2016 indicators including the Mining and Metal and Oil and Gas supplements disclosure is available on our website.

OPERATIONAL EXCELLENCE HEALTH & SAFETY COMMUNITY Vedanta Limited Odisha received the Zinc International's Black Mountain Mining TSPL team won the 'Organization Assurance and Disclosure Best Exporter's Award 2014-15 from won the Southern African Institute of Mining Category'- Social & Community Impact at Government of Odisha and Metallurgy's prestigious Health and the 9th India Power Awards 2016 Assurance of this report was carried out by KPMG under ‘limited assurance’ services in accordance with the ISAE 3000. There Wellness Award is an internal approval system in the Company for appointment of external assurance provider for the sustainability report. Sterlite Copper bagged the Golden Peacock Sesa Goa Iron Ore awarded the Best Business Excellence Award The Konkola Geology First Aid Team won the Education Improvement Award by the 11th Chamber of Mines Inter-Mine First Aid National Awards for Excellence in CSR & Vedanta's Value Addition Business won the Competition Sustainability Frost & Sullivan's India Manufacturing Excellence Awards (IMEA) EMPLOYEE LEADERSHIP Hindustan - Zinc Central Research and Vedanta featured among the 100 best Vedanta was conferred the '2016 India Development Laboratory (CRDL) received the companies for Women by the Working Non-Ferrous Growth Excellence 'Par Excellence Award' at the 4th National Mother Research Institute and AVTAR Leadership Award' and the '2016 India Conclave Mining/Minerals Growth Excellence Vedanta was also awarded 'Top Companies Sterlite Copper bagged the Leadership' Award at the Frost & Sullivan to Work for in Asia' by Asia Corporate Manufacturing Supply Award 2016, India Best Practices Awards Excellence & Sustainability (ACES) presented by Future Supply Chain, for Cairn O&G Business received the National Excellence in Manufacturing Supply Chain - Sterlite Copper won the Golden Peacock HR CSR Leadership Award for Cairn Centre of Heavy Engineering Excellence Award for Overall Excellence in Excellence and its Safe Drinking Water HR and People Management Practices Cairn O&G Business won the DL Shah Gold initiatives Quality Award for its Integrated Quality Jharsuguda received the coveted Sesa Goa Iron Ore won the 'Environmental Management Approach in Rajasthan BW Business World HR Excellence Award Leadership Award' in the Responsible for Excellence in Workplace Practice Business Awards Innovation for the year 2016

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C KPMG (Registered) Tel.: +91 124 307 4000 S S Building No. 10, 8th Floor, Tower-C Fax: +91 124 254 9101 I S D A STATEMENT DLF Cyber City, Phase-II, Gurugram - 122 002 (India) www.kpmg.com/in

The Management and Board of Directors METHODOLOGY ADOPTED FOR ASSURANCE Vedanta Resources Plc Our assurance processes involve performing procedures to obtain evidence about the reliability of specified performance information. The nature, timing and extent 16th Berkeley Street, London, United Kingdom, W1J 8DZ of procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the selected sustainability disclosures whether due to fraud or error. In making those risk assessments, we have considered internal controls relevant to the preparation of the Report in order to design assurance procedures that are appropriate in the circumstances. INDEPENDENT LIMITED ASSURANCE STATEMENT We have obtained sample evidence, information and explanations that were considered necessary in relation to the assurance scope and have arrived at conclusions mentioned below. Our work included a range of evidence-gathering procedures including: KPMG in India (KPMG) was engaged by Vedanta Resources Plc ('the Company' or 'Vedanta') to provide an independent assurance on its Sustainability Report for • Assessing that the report is prepared in accordance with the Sustainability Reporting Guidelines of the Global Reporting Initiative (GRI G4 - in accordance FY 2016-17 ('the Report'). The Report is prepared by the Company based on Global Reporting Initiative (GRI) G4 Guidelines 'in-accordance - core' disclosure criteria "Core" criteria). for sustainability reporting. • Reviewing the Report to ensure that there is no misrepresentation of disclosures as per scope of assurance and our findings. The development of Report, its content, identification of key material issues, engaging with stakeholders is the sole responsibility of the management of the • Reviewing the materiality and stakeholder engagement framework deployed at Vedanta. Company. KPMG's responsibility is to provide limited assurance on the Report content as described in the scope of assurance. • Understanding the appropriateness of various assumptions used for estimation of data by Vedanta. • Assessing the systems used for data collection and reporting of the General Standard Disclosures and Specific Standard Disclosures of material aspects as listed in REPORTING CRITERIA the assurance scope above. Vedanta applies its sustainability performance reporting criteria based on Sustainability Reporting Guidelines (G4) of Global Reporting Initiative (GRI) including the • Verifying systems and procedures used for quantification, collation and analysis of sustainability performance indicators included in the Report. Mining and Metals and Oil & Gas Sector Disclosures, National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business (NVG) • Testing on a sample basis, the evidence supporting the data and information. framed by the Ministry of Corporate Affairs (MCA), Government of India, United Nations Global Compact (UNGC) principles, International Council on Mining and • Holding discussion with senior executives at the plant locations and at the corporate office to understand the risks and opportunities from a sustainability Metals(ICMM) and Sustainable Development Goal frameworks for the Company as detailed in the 'Scope, Boundary and Limitations'. perspective including the strategy that Vedanta has adopted to address the same. • Assessing data reliability and accuracy. ASSURANCE STANDARDS USED • Verifying select key performance data through site visits to operational locations and corporate office for: We conducted limited assurance in accordance with the requirements of International Federation of Accountants (IFAC), International Standard on Assurance - Testing reliability and accuracy of data on a sample basis. Engagement [(ISAE) 3000, (Revised) Assurance Engagements Other than Audits or Reviews of Historical Financial Information. Under this standard, we have reviewed - Assessing stakeholder engagement process through interactions with relevant internal stakeholders and review of related documentation. the selected information presented in the Report against the criteria of relevance, completeness, reliability, neutrality and understandability. - Limited review of the materiality assessment process - Reviewing the processes deployed for collection, compilation and reporting of sustainability performance indicators at corporate and plant level.

SCOPE, BOUNDARY AND LIMITATIONS OF ASSURANCE Appropriate documentary evidence was obtained on a sample basis to support our conclusions on the information and data verified. Where such documentary evidence The Assurance has been provided for sustainability performance disclosures presented by Vedanta in its Report for the period 01 April 2016 to 31 March 2017. Our Scope could not be collected due to sensitive nature of information, our team verified the same at Vedanta's premises. of assurance included verification of the sample data and information on material aspects reported at the following units/locations and Corporate office at Gurgaon: • Vedanta Limited (Jharsuguda smelter & power plant, Orissa) • Zinc International (Konkola Copper Mines, Zambia) CONCLUSIONS • Hindustan Zinc Limited (Chanderiya Lead Zinc Smelter, Rajasthan) • Hindustan Zinc Limited (Rajpura Dariba Mines & Smelter, Rajasthan) We have reviewed the Sustainability Report of Vedanta. Based on our review and procedures performed as described above, nothing has come to our attention that • Hindustan Zinc Limited (Rampur Agucha, Rajasthan) • Cairn India Ltd. (Mangla Processing Terminal) causes us not to believe that the sustainability data and information presented in the Report is fairly represented in line with the identified material issues and is in accordance with the sustainability reporting guidelines (G4) of the Global Reporting Initiative. • Vedanta Ltd. - Sesa Iron Ore (Value Added Business, Goa) • Cairn India Ltd. (Suvali Terminal) We have provided our observation to the company in a separate management letter. These, do not, however, affect our conclusions regarding the Report. • Vedanta Ltd. - Sesa Iron Ore, (Codli Mines, Goa) • Vedanta Resources Plc (Corporate Office, Gurgaon) • Cairn India Ltd. (Rageshwari Gas Terminal) • Hindustan Zinc Limited (Corporate Office, Udaipur) INDEPENDENCE • Cairn India Ltd. (Ravva Onshore) • Cairn India Limited (Corporate Office, Gurgaon) The assurance was conducted by a multidisciplinary team including professionals with suitable skills and experience in verifying environmental, social and economic • Cairn India Ltd. (Bhagyam field) information in line with the requirements of ISAE 3000 (Revised) standard. Our work was performed in compliance with the requirements of the IFAC Code of Ethics for Professional Accountants, which requires, among other requirements, that the members of the assurance team (practitioners) as well as the assurance firm (assurance provider) be independent of the assurance client, in relation to the scope of this assurance engagement, including not being involved in writing the The assurance scope excludes: Report. The Code also includes detailed requirements for practitioners regarding integrity, objectivity, professional competence and due care, confidentiality and professional behavior. KPMG has systems and processes in place to monitor compliance with the Code and to prevent conflicts regarding independence. The firm • Data and information outside the defined reporting period and boundary; applies ISQC 1 and the practitioner complies with the applicable independence and other ethical requirements of the IESBA code. • The Company's financial performance; • The Company's statements that describe expression of opinion, belief, aspiration, expectation, aim or future intention and assertions related to Intellectual Property Rights; and RESPONSIBILITIES • Aspects of the report other than those mentioned below; Vedanta is responsible for developing the Report contents. The Company is also responsible for identification of material sustainability issues, establishing and maintaining appropriate performance management and internal control systems and derivation of performance data reported. This statement is made solely to the Management of Vedanta in accordance with the terms of our engagement and as per scope of assurance. Our work has been undertaken so that we might state to The General and Specific Standard Disclosures subject to assurance were as follows: Vedanta those matters for which we have been engaged to state in this statement and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Vedanta for our work, for this Report, or for the conclusions expressed in this independent assurance statement. The General Standard Disclosures assurance engagement is based on the assumption that the data and information provided to us is complete and true. We expressly disclaim any liability or co- responsibility for any decision a person or entity would make based on this assurance statement. By reading this assurance statement, stakeholders acknowledge and • Strategy and Analysis: G4-1 • Organizational Profile: G4-3 to G4-16 • Identified Material Aspects and Boundaries: G4-17 to G4-23 agree to the limitations and disclaimers mentioned above. • Stakeholder Engagement: G4-24 to G4- 27 • Report Profile: G4-28 to G4-33 • Governance: G4-34 • Ethics and Integrity: G4-56

Specific Standard Disclosures

• Environment: Energy (G4 EN3, G4 EN5, G4 EN6, G4 OG2, G4 OG3) | Water (G4 EN8, G4-EN10) | Biodiversity (G4 EN11, G4-EN14) Emissions (G4 EN15, G4 EN16, G4 EN18, G4 EN21) | Effluents and Waste (G4 EN22 to G4 EN24,OG-5,OG-7, G4 MM3) • Labor Practices and Decent Work: Employment (G4 LA1 to G4 LA3) | Occupational Health and Safety (G4 LA6) | Training & Education (G4 LA9 to G4 LA11) Santhosh Jayaram Diversity and Equal Opportunity (G4 LA12) Partner

• Human rights: Non-discrimination (G4 HR3) | Child Labor (G4 HR5) | Forced or Compulsory Labor (G4 HR6) KPMG • Society: Local Communities (G4-SO1, G4-SO2) 16 June 2017

73 74 & E E R C U N S A O R EXTERNAL L U C S S I S D A INDICES

UNITED NATIONS GLOBAL COMPACT

We continue to uphold the ten principles of the UNGC. Our Sustainable Development report communicates our progress in implementing the ten principles, and below we have mapped the principles against our various sustainability aspects and specific report sections.

Aspect UNGC Principle Report Reference Page No.

Human Rights Principle 1: Businesses should support and respect the protection of Human Rights 38-40 Internationally proclaimed Human Rights Principle 2: Make sure that they are not complicit in human rights abuses Human Rights 39, 14 Labour Rights Principle 3: Businesses should uphold freedom of association and the effective Human Rights 39 recognition of the right to collective bargaining

Child and Principle 4: The elimination of all forms of forced and compulsory labour Human Rights 40 Forced labour WE ARE DRIVEN BY PASSION Principle 5: The effective abolition of child labour Human Rights 39 Principle 6: The elimination of discrimination in respect of employment and occupation Employees 50 WE DRIVE THE CHANGE Environment Principle 7: Business should support a precautionary approach to environmental challenges. Environment 25 Principle 8: Undertake initiatives to promote greater environmental sustainability Environment 29 Governance 15 WE ASK MORE QUESTIONS Principle 9: Encourage the development and diffusion of environmentally friendly technologies Environment 37, 29 Customers 47 WE FIND MORE ANSWERS Ethics and Principle 10: Business should work against corruption in all its forms, including Governance 13 Integrity extortion and bribery WE QUESTION LEGACY UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS (UN SDGs) WE EMBRACE OPPORTUNITIES

In September 2015, the UN member states agreed on a set of 17 Sustainable Development Goals (SDGs), to end poverty, fight inequality and injustice, and tackle climate change by 2030. This year, we have prioritised the Sustainable Development Goals (SDGs based on materiality issues and operational competency. We are now in the process of chalking out targets and action plans to address the relevant Goals. Given below is our SDG priority list which states our endeavours that align with the said goals. WE ARE MORE GLOBALLY AWARE WE ARE SENSITIVE TO LOCAL NEEDS SDGs Report Reference Page No.

SDG1 Poverty Community Relations 53-63 SDG5 Gender Equality Employee 50 Community Relations 60 WE DON'T LIKE BEING SECOND SDG6 Clean Water and Sanitation Community Relations 57 WE PUT ENVIRONMENT FIRST SDG7 Affordable and Clean Energy Environment 25,27 SDG8 Decent Work and Economic Growth Employee 48-52 SDG13 Climate Action Environment 27 Our Strategy and Approach 09 WE LIKE TO GENERATE WEALTH SDG14 Life on Land Biodiversity 29 WE LOVE TO GIVE BACK SDG2 Hunger Community Relations 53-55 SDG4 Quality Education Community Relations 55, 56, 62 WE ARE SDG3 Good Health and Well-being Safety and Occupational Health 21,52 Community Relations 57 SDG10 Reduced Inequalities Employees 50 Community Relations 53-63 THE WE ARE SDG11 Sustainable Cities and Communities Community Relations 53-63 Environment 29 SDG5 Gender Equality Employee 50 Community Relations 60 FUTURE VEDANTA SDG9 Industry, Innovation and Infrastructure Strategic Communications 67, 71 CEO's Message 06 SDG12 Responsible Consumption and Production Environment 25-33 SDG16 Peace, Justice and Strong Institutions Governance 13 Human Rights 38 SDG17 Partnership for the Goals Advocacy 70 Stakeholder Engagement 37 75 Vedanta Resources plc 5th Floor, 16 Berkeley Street, London W1J 3DZ, Tel.: +44 (0)20 7499 5900 | Fax: +44 (0)20 7491 8440 | vedantaresources.com

GET IN TOUCH MORE ONLINE View our online Annual Report We value your feedback and View our online http://www.vedantaresources.com/ welcome comments on this report Comprehensive SD Report investor-relations/results-and- or any aspect of our approach to sd.vedantaresources.com/ reports/annual-interim- sustainability reporting. SustainableDevelopment2016-17/ reports.aspx [email protected]

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