CONTENTS W e have chosen the Dandelion flower as a representation 1.1 Managing Director’s Statement……… Page 1 of our Sustainability Approach 1.2 Strategy & Analysis……………………Page 5 as its flower, puffball and leaf, though less ornate than others, are 2. Organisational Profile……..………… Page 15 representative of positivity, progress 3. Report Parameters…………..……… Page 21 and survival – a symbol of life. 4. Governance…………………….....….. Page 25 One form of the dandelion grows 5. Economic Performance…………...…. Page 37 in every continent of the planet, planting thought seeds and 6. Operational Excellence..…………...… Page 43 messages across the world. 7. Labour Practices………………….….. Page 67 Folklore has given the humble flower 8. Human Rights………………….......… Page 79 a place and meaning in all cultures. 9. Society ……………………………...... Page 87 10. Product Responsibility…………...… Page 101 11. GRI Index ............................................................ Page 115 Managing Director’s Statement Dear Stakeholder, The global economy has seen challenging times in the last few years with subdued growth levels in USA, Europe, Japan and gradual cooling of the Chinese economy. Revival of the Indian economy is of critical importance. The country and the industry in particular have been facing mounting challenges, precipitated by several years of subdued economic activity. At the end of the last financial year India had its general elections, which were primarily contested over development issues. As a foundation industry, Tata Steel recognises its role in engendering economic growth through investments in manufacturing. We have rapidly expanded operations in India during the last few years. Our manufacturing capacities, from mining to steel making, were expanded substantially through the 2.9 MTPA expansion project in 2013-14. We are also at the cusp of becoming a multi-locational steel manufacturer in India. The first phase of our greenfield project in Kalinganagar, Odisha is gearing up to begin operations soon. PB Corporate Sustainability Report 2013-14 Tata Steel Limited Tata Steel Limited Corporate Sustainability Report 2013-14 1 Even as Tata Steel changes by adopting To actualize our strategy for technology new ideas best suited for the future, equally advancement, a key enabler for excellence, important is to retain best practices from the distinct processes have been set in place for New past. The most important among them is the Product Development as well as for product and ethos of value creation for all stakeholders and process improvements/ modifications. In 2013- a culture rooted in growth through ethical 14, the Innovation Council was established in business means. Therefore even as Tata Steel the R&D Department and Project “Innovent” is shaping its future course, it is aware of the launched in Marketing & Sales. The latter is requirement to balance the organisation’s needs aimed at adopting a more structured approach with that of the community. This belief, the to innovation in the marketplace. wellspring of its own sustainability, has given the Company the capacity to consistently progress, Our Procurement function was reorganized, process taking forward the theme of: ‘Excellence for integration brought about, improved Vendor Common Good’. Development mechanisms, and Contract Management Review Process was launched. The objective includes broad-basing our SA8000 goals, promoting local I joined Tata Steel as a Management Trainee and my procurement, developing local vendors and accelerating journey since then has given me the opportunity to on our affirmative action priorities. appreciate the relevance of the culture and the values of this great institution, which gives Tata Steel a unique The scope of work for the reorganised Productivity Services identity. Now as Managing Director of the Company my team is to help the Company achieve its productivity foremost priority is to strengthen this culture along with goals, while minimizing employee grievances and factors that create an enabling environment. providing equal opportunities to all employees. Though our employee engagement score of 74% for officers and To revisit our understanding of the expectations employee happiness score of 86% for non-officers is better stakeholders have of the Company and for defining the than the industry average, we would like to improve way forward a Materiality Exercise was undertaken, which further. concluded in 2013-14. Of the ten themes identified as material issues, the majority are those already given high Our growth and expansion strategy for India is juxtaposed priority by Tata Steel as they are captured in worldsteel’s with limited availability of natural resources. Our initiatives Sustainability Indicators and principles of the United to optimise use of natural resources continued to Nations Global Compact (UNGC). These include corporate accelerate during the reporting year. Project “Propel” governance, emissions, environment management, in the Raw Materials Division will enable us to adopt occupational health & safety, product innovation benchmark-mining practices and sustain quality through and community engagement. Of these, emissions, state of the art planning. As a part of our 2.9 MTPA growth environment management and occupational health & in iron and steel making, we commissioned a new Coke safety are the ones where I believe adequate room exists Oven battery in April 2014, Pellet Plant, state of the art Thin for further strengthening despite our continuous and Slab Caster and a Continuous Annealing line. This was a concentrated efforts. part of our phased expansion programme to install India’s most resource and energy efficient Blast Furnaces. Several projects and initiatives taken last year were in harmony with issues highlighted by the Materiality Map. A dramatic improvement in pellet quality (an agglomerate The underlying theme for all these initiatives, with a broad of iron ore fines) achieved by the Research & Development based impact across the organization and value chain, team in 2013-14, allowed us to use 45% pellets in the blast is our pursuit for Excellence. It is pursued in Tata Steel furnace burden, which is a first of its kind achievement through projects that require complex tools, in addition in the country. A new thrust area now for the R&D team to cross-functional team efforts by shop floor employees is to improve Waste Water Management so that we can such as Kaizens, Small Group Activities and Suggestion achieve our goal of near Zero Water Discharge in the steel Management. manufacturing process. 2 Corporate Sustainability Report 2013-14 Tata Steel Limited Tata Steel Limited Corporate Sustainability Report 2013-14 3 Our Marketing & Sales function was restructured during new services and solutions businesses the year. To establish stronger relationships with the • Lost Time Injury Frequency Rate rose customer, we sought to replace the earlier product led unfavourably to 0.50 from 0.48 in FY13. approach and align the organisation to the end-use The Mining & Steel industry, being extractive by nature, segments and customer buying behavior for greater is resource intensive and has a high environmental and customer centricity. The shift also requires new offering social footprint with processes giving rise to safety hazards. and new solutions supported by channel partners who Tata Steel in line with its philosophy to be a responsible are being encouraged to transit from being traders to Corporate Citizen has several on-going initiatives to entrepreneurs. minimise its negative footprints and leave an overall positive impact for all stakeholders. The increase in capacity at our Steel Works has been supported by the augmentation and modernisation of Safety: Prior to assuming charge as the Managing Director the out-bound logistics network by the Customer Services in November last year, Safety was my direct responsibility. Division to handle despatch of nearly 9 million tonnes It is an area I continue to bear responsibility for and am of Saleable Steel. As per our long-term plan, warehouses deeply engaged with. Despite a Safety Excellence Journey were upgraded with green features like Rain Water since 2006 with DuPont, the leading experts in the world Harvesting at various locations. The Supplier Relationship as partners, it is an area requiring foremost attention. Management (SRM) initiative was extended to major We have certainly come a long way over the years with transport partners in 2013-14. extensive work undertaken in focus areas. Quantifiable improvements have been captured in construction Looking at our performance during the activities, road traffic management and contractor reporting period of FY14 with respect to management. targets, the key achievements and failures are: Yet I feel no hesitation in stating that our Safety • Specific CO2 intensity improved substantially performance has room for improvement. We have not been able to eliminate fatalities at Tata Steel. As Managing to a new low of 2.43 tCO2/tcs from 2.53 tCO2/ tcs in FY 13 Director I have therefore committed to ensuring that Tata • Tata Steel achieved a Hot Metal Production Steel is a zero fatality workplace within the next three of 9.89 million tonnes and Crude steel years. production of 9.16 million tonnes up from 8.86 million tonnes and 8.13 million tonnes, Emissions and Environment Management: Tata respectively, in FY13 Steel’s operations stretch from the mining of ore to the • Best-ever total agglomerate production of end consumer. The Company