Vedanta Summary Report for Digital Print

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Vedanta Summary Report for Digital Print 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.
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