Corporate Sustainability Report 2007 Application Level A
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Corporate Sustainability Report 2007 Application Level A Defining Report Defining Quality Content • Balance • Materiality Boundary Setting • Comparability • Stake Holder • Control • Accuracy Inclusiveness • Significant • Timeliness • Sustainability Influence • Clarity Context • Reliability • Completeness Standard Disclosure Strategy & Management Performance Profile Approach Indicators Reported in Management Approach Responded to each core Chapter-1,2&3 as per disclosed for each and additional G3 guidelines Category as per G3 indicators as per G3 by PricewaterhouseCoopers Assured Report Externally guidelines guidelines CORPORATE SUSTAINABILITY REPORT 2006-07 Dear Stakeholders, Tata Steel’s journey over the past hundred years is a fascinating and groups. Business practices established by us through good saga of pioneering initiatives in steel making, responsible times and difficult ones reaffirm our faith that it will always drive industrialisation with minimal impact on environment and the sustainability and through it, profits. socio-economic empowerment of the community. Our continued license to operate is, we believe as a result of our responsible I am pleased to present the Corporate Sustainability Report of business practices. These practices focus on elements of Tata Steel for the year 2006-07 as per GRI:G3 guidelines. Tata sustainability – economic, social and environmental. We invest Steel was one of the first Indian companies to adopt the stringent in the welfare of our people as well as for the communities that guidelines under the Global Reporting Initiatives. This is our surround us and for the health of the environment. seventh consecutive report. The year under review was significant due to the announcement Our Company, one of the founder signatories of the United Nations of several capacity expansion plans in Greenfield sites. The Global Compact has also made progress in several areas in company showed commitment to address the sentiments and implimenting its ten principles this document also serves as concerns of the people living in the vicinity of such sites and the Communication of Progress (COP) for the ten principles of the families that may get displaced by the projects through its Tata UNGC. They are invalueable guidelines and we are committed Parivar programme. to them. The most notable event during the year was the company’s public The report represents a balanced and reasonable presentation of offer to acquire 100% of the shares of Corus Group plc, a 21 our organisation’s economic, environmental and social performance million tonne capacity steel producer with plants in the United for evaluation by our esteemed stakeholders. We solicit feedback Kingdom and the Netherlands. Together, Tata Steel and Corus from all our stakeholders on this report. will be a 30 million tonne steel enterprise with operations in four continents after completion of the expansion programme in Jamshedpur. The acquisition of Corus has transformed Tata Steel from a domestic steel producer to an international steel company with global scale. It is a fitting tribute to the vision of our Founder, B Muthuraman Jamsetji N. Tata, that this very major transformation has taken Managing Director place in the centenary year of the Company’s operations. As one looks into the future, one continues to see demand for steel as the principal base material for most industrial products. Within India itself the country’s growing prosperity will inevitably result in a dramatic increase in the demand for steel to meet the needs of large infrastructure programmes, which India will have to undertake in order to sustain the high level of economic growth, which it enjoys today. Raw material security is a significant imperative for the long- term sustainability of the Company’s success. Focused efforts are therefore being made by the Company to achieve higher levels of raw material security to meet its increased needs in line with its further growth aspirations. Tata Steel is actively exploring operations in resource-rich countries for iron ore and coal, as also seeking fresh leases for iron ore and coal at various locations in India. As we grow and globalise in the new century of our existence, we have the opportunity to work with nations, diverse communities CORPORATE SUSTAINABILITY REPORT 2006-07 01 INDEPENDENT ASSURANCE REPORT BY PRICEWATERHOUSECOOPERS PVT. LTD. To, The Board of Directors, Tata Steel Limited Bombay House, 24 Homi Mody Street, Mumbai – 400 001 India. Objective of Review PricewaterhouseCoopers Private Limited (“PwC) was engaged by Tata Steel Limited (“Tata Steel”) to review its Corporate Sustainability Report 2005-06 (“Report”). The review was carried out in line with current and emerging expectations for sustainability reporting as outlined in GRI 2002 Guidelines (GRI) and embodied in the eleven Reporting Principles of Part B of GRI (“Reporting Principles”). Responsibilities during Review The Management of Tata Steel is responsible for defining stakeholders and for the collection and presentation of the financial and non- financial information in the Report. Our responsibility, as agreed with the Management, is to express conclusions with limited assurance on select data and information contained in the Report in accordance with the International Standard on Assurance Engagements 3000 (“ISAE 3000”). The Report of Tata Steel has been produced both electronically and in print. The Corporate Sustainability Report 2005-06 and its contents are the responsibility of the management of Tata Steel, while the observations made under Independent Review Report is the outcome of the professional work undertaken by PricewaterhouseCoopers Private Limited. Limitation of our review Our review comprised limited assurance on data and information provided reported against the indicators delineated under Scope of Review, below. The data and graphs on financial performance, as specified in the Report under Economic indicators, are derived from the audited 2005 financial statements of Tata Steel Limited and were not within the scope of our review. A review of Tata Steel’s performance against the UN Global Compact Principles was also not included in our scope of work. Scope of Review Our assessment involved providing limited assurance on select data, graphs and statements of Tata Steel contained in the Report for the period 1st April 2005 to 31st March 2006. Scope of the review covered: a) Review of certain statements and data relating to the Tata Steel’s operations and to provision of limited assurance in respect of these statements and data; b) Review of on-site data collection process, data management and collation process and the assimilation of this data into the tables, graphs and statements presented in this Report; Checking of the internal control system, including monitoring and reporting procedures and whether it supports reliable disclosure in the Report; c) Visit to 2 sites namely, Steel Works, Jamshedpur (Jharkhand) and West Bokaro Colliery (Jharkhand) d) Checking of the data stated provided against the indicators n Suppliers breakdown (EC11) n Direct and Indirect Energy use (EN 3 & 4) n Total water use (EN 5) n Total amount of waste by type and destination (EN 11) n Environmental Compliance (EN 16) n Energy Efficiency initiatives (EN 17) n Breakdown of workforce (LA 1) n Employee benefits beyond those legally mandated (LA 12) n Average hours of training per year per employee by category of employee (LA 9) n Equal opportunity policies, programs and monitoring systems (LA 10) CORPORATE SUSTAINABILITY REPORT 2006-07 02 Basis for Review We planned and performed our work in accordance with the ISAE 3000 to obtain limited assurance. Based on an assessment of completeness, reliability, materiality and risk, relevant information was collected and triangulated to verify its completeness and reliability. Our assessment on materiaity reflects concepts emerging from forums such as the Global Reporting Initiative and AccountAbility. We considered an omission, error or misrepresentation of information from the report to be material if it could influence the decisions or actions of the company’s key stakeholders, or result in Tata Steel inappropriately reporting on progress against targets. We sought all information and explanations that we considered necessary to provide sufficient evidence for us to ascertain that the above indicators were consistent with the activities in the plant areas for the financial period; and were documented and stated in accordance with the guidelines stated under their environmental and social policies. Review Procedures Assurance Procedure Based on an assessment of materiality and risk, our work included a review of management systems, reporting structures and boundaries as well as interviews and testing of registration and communication systems, data and underlying documentation. We tested whether data and the underlying components are accounted for in such a way as to fulfil the assertions of materiality and reliability made by Tata Steel. Parties responsible for Assurance Engagement Our engagement was carried out by a multi-disciplinary team of requisite skills and experience. The assurance engagement was led by Mr. Devinder Chawla and was executed by Dr. Muna Ali. Opinion On the basis of the work undertaken, nothing has come to our attention that would cause us not to believe that: a) The information cited at indicators EC12, EN 9, EN10, EN12, LA 5, LA 8, LA 9, LA 17 and HR 13, in the Report has been fairly stated. b)