SUSTAINABLE DEVELOPMENT IS INCLUSIVE GROWTH THAT MEETS THE NEEDS OF THE PRESENT WITHOUT COMPROMISING THE ABILITY OF FUTURE GENERATIONS TO MEET THEIR OWN NEEDS.

Overview

Sustainable Development is a core element of our guiding strategy and supports our growth as a diversified natural resources company. This encompasses Corporate Social Responsibility and includes the activities we undertake across our operation to ensure the health and safety of our people, how we make valuable economic and social contributions to the communities and regions where we operate and how we manage our environmental footprint.

Founded in India, our business has grown in parallel with India’s emergence as an economic superpower with a significant global presence. We are the market leader in many key commodities in the country, and with economic growth forecast likely to recover in a few years, Vedanta Limited remains uniquely positioned as a domestic supplier.

Our operations in India have given us an invaluable understanding of how to make a positive contribution to a developing country. We are able to take this experience to our operations in other countries, particularly in Africa, the other major region of our operations.

Accelerating economic activity:

The natural resources sector is one of the key contributors to modern society as, without raw materials, the lifestyle that so many of us enjoy today would not be possible. The resources we bring to market have a myriad of uses, creating the basic building blocks of society: iron ore is used in the construction of transport networks and building infrastructure; copper is used to connect people through telecommunications and in lifesaving medical devices, and aluminium is used across a myriad of products, including protecting foodstuffs from spoiling, and helping to reduce fuel emissions as a lightweight material for automobiles. In addition, we generate electricity that lights millions of people’s lives and our crude oil is an essential component of thousands of secondary products.

Our presence facilitates, through the contributions we make to the exchequer, the vital role of governments to deliver appropriate infrastructure and valuable services to their societies. In FY 2015-16, we paid ₹ 20,600 Crore to exchequer across the world.

The scale of our operations also makes us a major economic contributor through the flow-on effect of our activities. By sourcing products and services locally, we generate significant economic activity and promote the development of local skills that creates new opportunities of employment. This is particularly relevant as the majority of our operations are in the developing world and we are committed to enabling the sustainable development of these societies.

Our strategy to sustainable development

Alongside delivering high-quality assets and low-cost operations, our Sustainability Development Model is integral to Vedanta’s core business strategy and helps us conduct our business in line with our values of entrepreneurship, growth, excellence, trust and sustainability.

Sustainability highlights of the year

  • 41.1 mn MT of CO2 equivalent carbon footprint
  • 0.44 lost time injury frequency rate
  • ₹ 20,600 Crore tax payments to exchequers
  • 1,563 full-time female employees
  • 100% of sites conduct periodic medical examinations for employees
  • 43 out of 47 sites are certified to ISO 14001 environmental and OHSAS 18001 standard
  • 684,840 Safety training hours delivered to all staff
  • 0 category 4 or 5 (severe) environmental incidents
  • 50% non hazardous waste recycling rate

Sustainable Development model


Sustainability Ranking

‘Vedanta is at the forefront of environmental, social and, governance (ESG) practices in India.’

Seema Arora, Executive Director of CII-ITC.

Vedanta Limited and HZL are ranked among the top 10 sustainable companies of FY 2014-15.

Sustainable Plus is India’s first and only corporate sustainable label launched by CII’s Centre of Excellence for Sustainable Development (CESD), which credits businesses based on the principles of transparency, responsibility and accountability. Both companies have been conferred with ‘Platinum Label’, the highest rating accorded by Sustainable Plus.

It is made up of four pillars- Responsible Stewardship, Building Strong Relationships and Adding & Sharing values and Strategic Communications, based on our strategy to deliver long-term sustainability development as shown in the diagram. These pillars capture the steps we must take to ensure a long-term, successful future for our business – meeting our strategic goals of growth, long-term value and sustainable development.

Our model and framework is aligned to global best practice standards, including the United Nations Global Compact’s (UNGC) ten principles, the International Finance Corporation, the International Council on Mining and Metals and the Organisation for Economic Cooperation and Development.

Management assurance framework for sustainability

We have created a management framework to put our Sustainable Development Model into practice. We are committed to ensuring this Framework is followed and managed in all our operations and new projects as part of our sustainability journey. Our goal is for the Framework to be delivered by all employees and embedded in every decision we take, ensuring what we do is safe, ethical and transparent.

Materiality

Our business gives rise to a number of social and environmental impacts, both positive and negative. Along with our stakeholders, we prioritise which of these issues we will tackle, and when. The process by which we determine what is material, i.e. what is most significant to our stakeholders and our business is referred to as completing a materiality review, detailed in Vedanta Resources SD Report 2015-16.

Responsible Stewardship

Occupational Health & Safety

Protecting the safety, health and wellbeing of those who work for us is a business imperative. Our stakeholders recognise this and have rated safety and occupational health as our highest strategic priority. In a geographically diverse business like ours, where attitudes to health and safety can vary, fostering a culture of zero harm is no easy challenge. Our Sustainable Development Framework points us to the highest recognised global standards, while continuous auditing and decisive leadership drive compliance.

This year we have implemented and put forward behavioral based and technical programmes like implementation of Safety standards, Job risk assessment and training workshops, personal commitment to not ignore any unsafe act or condition, among other initiatives to drive our excellence towards Zero Harm goal. In FY 2015-16, 684,840 hours of safety training were delivered to employees and contractors on subjects including working at height, permit to work, job safety analysis, first aid, incident reporting, safe behaviour and falls. We also focused on building a strong understanding of Vedanta Safety Performance Standards and Incident Investigation among our people.

In FY 2015-16, 684,840 hours of safety training were delivered to employees and contractors on subjects including working at height, permit to work, job safety analysis, first aid, incident reporting, safe behaviour and falls.

We are seeing tangible outcomes of this safety drive, with fewer fatalities and lost time injuries. However, any unsafe incident is entirely unacceptable and tragically, nine employees died due to work-related causes over the year (eight were in India and one in Africa). Each fatality has been fully investigated with each subsidiary company’s Chief Executive or Chief Operating Officer presenting a detailed appraisal of the root causes of each fatality to the Vedanta Resource’s Sustainability Committee and updating them on action plans in response.


TRACKING ZERO HARM

Tracking vehicles anytime, anywhere

Fleet safety is one of the prime concerns in the mining industry. It is vital to monitor vehicle speed & administer consequence management system for the violators. We have thus installed GPS trackers in the heavy motor vehicles at Jharsuguda unit. The tracker provides key information like exact location of the vehicle, speed at which it is travelling, total distance covered and speed variation.

Encouraging Deeper Ownership

Single Point Accountability (SPA) is one of the driving forces of safety management at Sterlite Copper. A set of protocols, SPA is aimed at decentralising safety responsibility and encouraging individual accountability. Several awareness campaigns as well as reward mechanisms encourage employees to embrace SPA.

Making Better Risk Decisions

Our Safety Leadership Transformation programme has been piloted and will empower line leaders to make better decisions by foreseeing the risks relevant to their routine and nonroutine work profile and understanding the consequences associated with it.

6,000 operational leaders across all sites from the COO to supervisors and including key contractors will be empowered through the programme. This is an ongoing programme and leadership training is already started on this.

Life support during emergencies

Hindustan Zinc Limited installed ‘refuge chambers’ in its Rampura Agucha underground mine to guard the safety of workers during emergency situations. Refuge chamber is a life support equipment capable of providing air supply, oxygen supply and CO2 absorbing system for 36 hours. With this additional capacity, now there are four refuge chambers which can accommodate six people and two chambers which can accommodate 20 people at the mine.

During the reporting year, all sites conducted 100% medical examinations for employee’s and contract workforce. A further 92% sites became OHSAS 18001 certified for occupational health and safety management.

For more information about our Occupation Health and Safety projects initiatives and impacts, approach and mitigation strategy, please refer to Vedanta Resources online Sustainable Development Report
2015-16.

We are implementing Biodiversity Action Plans at all our sites and working on innovative ways to recycle waste from our operations including fly ash, red mud, phosphorgypsum etc.

Environment

The mining of natural resources is a complex and intensive process that introduces environmental and social change and we strive to maintain the right balance between economic growth and sustainability.

By adopting world-leading practices, we aim to reduce and minimise the environmental impact of our operations. Our goal is to obtain ISO 14001 certification at all sites by this year and as of now 43 out of 47 operations are certified. Systems to reduce water and energy consumption, minimise land disturbance, and waste production, contain pollution and conduct successful mine closures are in place. We are implementing Biodiversity Action Plans at all our sites and are also finding new and innovative ways to recycle waste from our operations including fly ash, red mud, phosphor, gypsum etc.

We are proud to report zero serious environmental incidents over the year. We are continuing to implement our pledge to provide safe access to Water, Sanitation and Hygiene for our workforce under the WASH initiative of the World Business Council for Sustainable Development to ensure all employees worldwide have better working conditions.

In line with our site closure plan strategy, we are starting the rehabilitation programme for the Lisheen mine that ceased production this year, in consultation with employees, local authorities and local environment groups.

Water

Our approach is outlined in our Water Policy and delivered through our Water Management Standard. We facilitate the

integration of water management into decision-making processes for both new and existing projects, which helps ensure all necessary measures to avoid, minimise or, in some cases, compensate for the impacts of our projects.

The majority of our subsidiary businesses have a Water Resources Management Plan in place to eliminate, minimise, mitigate and manage impacts on water resources. Most of our operational processes have been designed to be ‘zero discharge’, where the generated waste water is treated and recycled for cooling and other applications.

In addition to these initiatives, effluent and sewage treatment plants are installed at many locations for reusing water at primary locations. More details can be found in Vedanta Resources SD Report 2015-16.

Energy and climate change

Climate change is a growing concern globally, and recent record temperature trends will likely accelerate this concern. As an extractive industry, we have a profound responsibility to respond to the planet’s undisputed warming and to adapt to future changes. We feel this will require multiple solutions, including using innovative technology to improve energy efficiency and finding more carbon neutral solutions. It is vitally important that every country provides the right incentives for the development and communication of climatefriendly processes and practices. After the recently concluded Paris agreement on Climate Change (COP 21), we are working to formulate a company strategy on Climate Change that is aligned with the Intended National Determined Contribution (INDC) for the countries in which we are operating.

Our Energy and Carbon Policy mandates that all subsidiary businesses must apply global best practice to minimise greenhouse gas (GHG) emissions and energy use, looking to energy management standards such as ISO 50001, and deploying the latest technology to optimise efficiencies.

During FY 2015-16, we conducted internal benchmarking on energy consumption among all our subsidiaries, and we are pleased to report that we met our energy targets over the year, consuming 396 mn gigajoules of direct and indirect energy.

RIGHT OF SAFE DRINKING WATER

A staggering 1.8 bn people worldwide lack access to safe drinking water, while four billion are without adequate sanitation. In India, the government has announced that all households will have ‘complete’ sanitation by 2019.

We pledged universal access to safe Water, Sanitation and Hygiene (WASH) in the workplace, an initiative of the World Business Council for Sustainable Development, which brings businesses together to create a sustainable future. Going forward, we will be using a modified version of the WASH water tool appropriate to our operations.

This year we have extended the pledge to our community and are committed to provide safe drinking water and sanitation to our neighbouring communities.

With the objective of making people aware about the benefits of safe drinking water, Cairn India, along with its partners, organised an awareness programme at Kharantiya, Bodwa and Seoniyala villages of Barmer District. The programme organised at Government Schools in the respective villages was attended by students, teachers, villagers and panchayat members.

Our other business like HZL, BALCO, TSPL, Sterlite Copper has also followed a similar approach to drive awareness on hygiene and sanitation in these neighbouring communities.

Biodiversity

Protecting biodiversity is an integral part of Vedanta’s commitment to sustainable development. Our dedicated Biodiversity policy and management standard advice how disruption to wildlife should be avoided, minimised or compensated for, from project scoping to site closure and beyond. Our aim is to achieve a minimum of No Net Loss (NNL) of biodiversity and Net Positive Gain (NPG) of biodiversity (in case any critical habitat is present) at all our operations.

We apply the UN Environment Programme’s Integrated Biodiversity Assessment Tool (IBAT) to screen for risk, followed by sitespecific assessments to identify sensitive habitats, important bird areas and key biodiversity hot spots. The results of risk screening and assessments are applied to develop Biodiversity Management Plans (BMPs) for all our main sites. All the sites are now implementing BMPs at their operations.

Vedanta is committed to formulate a company wide strategy on Climate Change that is aligned with the Intended National Determined Contribution (INDC) for the countries in which we are operating.

BIODIVERSITY INITIATIVES

Butterfly Park at HZL- Pantnagar, India

Being responsible for pollination of more than 3% of the world’s plants, butterflies play a very important role in the ecosystem. During our biodiversity study of 117 species of butterfly at HZL- Pantnagar operation, we found that most of the species were present in very low numbers.

We decided to improve the habitat so that they would attract more of this ecologically important insect group. A butterfly park in an area of 225 sq. m. was set up in the core zone near the administration block at PMP. 660 different seasonal and permanent flower varieties were planted to attract butterflies and a pond was made for the birds inside the plant premises.

Guinness Book Plantation Record at Mansa, India

Talwandi Sabo Power Limited (TSPL), a subsidiary of Vedanta, set a world record by planting 206,000 saplings in one hour on October 30, 2015 in Mansa, Punjab. Over 5,800 supporters from schools, surrounding villages and locals volunteered to make this feat possible on a 200-acre land area. Considering the small forest cover in Punjab, these additional trees will help improve biodiversity in the region and specifically in Mansa.

Harvesting Plants at Gamsberg, S Africa

In continuation of our biodiversity measures, we relocated close to 80,000 plants to the Gamsberg Research and Rehabilitation Centre to help them survive a scant monsoon and a severe summer. 10,000 of the collected seeds were donated to SANBI-Karoo Desert in Worcester. We also donated plants to SANBI (Karoo Botanical Gardens- Worcester).

Building Strong Relationships

Stakeholder engagement

We stand by our philosophy of transparency and believe that anyone should be able to voice their opinions; that they should be listened to; and that they can expect a considered and constructive response. This is the basis for connecting with others and building strong relationships.

To illustrate the importance we place in this, we have added strategic communications as a fourth pillar to our Sustainable Development Model. This reflects the emphasis we place on partnership-working and also global trends of consumerism in emerging markets meaning that more people than ever have an interest in commodity production. We have identified six stakeholder groups that have a significant interest in our operations, formally consulting with every group on other issues throughout the year.

In FY 2015-16, 684,840 hours of safety training were delivered to employees and contractors on subjects including working at height, permit to work, job safety analysis, first aid, incident reporting, safe behaviour and falls.

Adding and Sharing Value

Economic value

We pursue a three-pronged approach to add value. We add value to countries’ exchequer by discovering natural resources and processing them so that they are fit for use. We enhance the value of our assets through technically and technologically advanced processes that help us tap more resources per pound. And we expend value by driving direct and indirect positive economic impact in the form of payment of taxes & royalties, and investments towards our employees and community.

In FY 2015-16, our revenues stood at ₹ 63,931 Crore, EBITDA at ₹ 15,012 Crore. Net debt reduced by ₹ 6,254 Crore; cash and cash equivalents of ₹ 52,666 Crore.

As the largest producer of aluminium, Crude Oil, copper and zinc-lead in India we make a significant contribution to the development and maturity of many markets. Due to the scale of our operations, we generate opportunities for downstream industries and support services, which has led to the growth of other industries which are capitalising on the increased availability of domestic raw materials.

Sourcing locally benefits local economies and governments contributes to reducing our carbon footprint and can improve skills development and training in areas such as health and safety, as well as making improvements to local infrastructure.

All our activities are focused on ensuring customer needs are met in an appropriate and timely manner, including assisting our customers with technical issues and product development for first use. Customer satisfaction surveys are conducted periodically by external third parties.

Our strategy is to build a culture of high-performance, entrepreneurial innovation, while caring for and supporting everyone who works with us.

Our strategy is to build a culture of high-performance, entrepreneurial innovation, while caring for and supporting everyone who works with us. To safeguard our future competitiveness, we also seek to identify and develop leadership skills; create a fair workplace free from discrimination; and respect human rights above all else.

Employees

Around 55,000 people work hard at Vedanta every day to make it the success that it is. Every single employee can expect to be inspired to meet their potential; to feel empowered and united under shared values.

Our strategy is to build a culture of highperformance, entrepreneurial innovation, while caring for and supporting everyone who works with us. To safeguard our future competitiveness, we also seek to identify and develop leadership skills; create a fair workplace free from discrimination; and respect human rights above all else.

We are proud of the diversity of backgrounds we come from – different perspectives help us solve the complex challenges we face and make us more responsive to future risks and opportunities. Creating an inclusive workforce starts in the community and continues through our talent and development programmes. It means focusing specifically on equal opportunities for women, where we know we need to significantly improve our performance.

WINGS OF FREEDOM AT STERLITE COPPER

Sterlite Copper, one of India’s largest copper producers, is on its way to become a benchmark workplace. This synopsis of the Company’s employee practices is a fine example of the Group’s talent management philosophy

Freedom to Learn and Grow

Freedom to innovate and maximise potential

  • Cross functional assignments
  • Young age responsibility
  • Mentoring by senior leaders
  • Personal and professional aid
  • Focus on continuous improvement via Kaizen
  • Global exposure through platforms like Global Exposure Programme

Freedom to be recognised and rewarded

  • Trainee of the quarter
  • Team of the month
  • Spot recognition
  • CEO Kitty
  • Long term service award
  • Chairman’s Award

Water

Our approach is outlined in our Water Policy and delivered through our Water Management Standard. We facilitate the

integration of water management into decision-making processes for both new and existing projects, which helps ensure all necessary measures to avoid, minimise or, in some cases, compensate for the impacts of our projects.

The majority of our subsidiary businesses have a Water Resources Management Plan in place to eliminate, minimise, mitigate and manage impacts on water resources. Most of our operational processes have been designed to be ‘zero discharge’, where the generated waste water is treated and recycled for cooling and other applications.

In addition to these initiatives, effluent and sewage treatment plants are installed at many locations for reusing water at primary locations. More details can be found in Vedanta Resources SD Report 2015-16.

Energy and climate change

Climate change is a growing concern globally, and recent record temperature trends will likely accelerate this concern. As an extractive industry, we have a profound responsibility to respond to the planet’s undisputed warming and to adapt to future changes. We feel this will require multiple solutions, including using innovative technology to improve energy efficiency and finding more carbon neutral solutions. It is vitally important that every country provides the right incentives for the development and communication of climatefriendly processes and practices. After the recently concluded Paris agreement on Climate Change (COP 21), we are working to formulate a company strategy on Climate Change that is aligned with the Intended National Determined Contribution (INDC) for the countries in which we are operating.

Our Energy and Carbon Policy mandates that all subsidiary businesses must apply global best practice to minimise greenhouse gas (GHG) emissions and energy use, looking to energy management standards such as ISO 50001, and deploying the latest technology to optimise efficiencies.

During FY 2015-16, we conducted internal benchmarking on energy consumption among all our subsidiaries, and we are pleased to report that we met our energy targets over the year, consuming 396 mn gigajoules of direct and indirect energy.

It is beneficial for our business to hire people who understand the market and can engage effectively with contractors and suppliers. Ensuring managers are from the local area is particularly important in helping us relate to the issues faced by neighbouring communities, thus connecting our business and sustainability strategies.

Communication is vital for good human resource management. Engaging with the employees makes them more productive, better aligned and more committed. It also manifests in smooth and effective functioning of the organisation. We maintain an ongoing communication with our employees through multiple programmes at various levels with multiple communication tools such as HZL news, Yagna, EZines, Internal newsletters and social media.

Code of Business Conduct & Ethics

Our Code of Business Conduct and Ethics (the Code) provides a set of principles to guide our employees, while our Sustainable Development Framework outlines best practice standards that drive improvement consistently across all operations.

The Code covers issues from human rights, insider trading and political contributions; to competition, conflicts of interest and confidentiality. It provides guidelines for all businesses to assist employees in meeting high standards of personal and professional integrity. Training in our Code is mandatory for all new hires.

In total 28,770 person-hour of training in Human Rights and Code of Business Conduct and Ethics was given to all our employees and contractors. A key focus is absolute intolerance to fraud, bribery and corruption and we welcome the Indian government’s policy in recent years to confront this.

Strategic Communication

In order to reflect the proactive communications with stakeholders, understand their needs, shape their expectations and share Vedanta’s intentions, commitments and actions, we introduced strategic communication as the fourth pillar of our sustainable development model.

WINGS OF FREEDOM AT STERLITE COPPER

A virtual town hall meeting was chaired by Vedanta Resources Founder and Chairman Anil Agarwal, where he spoke about his vision on the Company and the current market conditions.

The interactive session was held using tele presence and video conferencing system connecting 30 Vedanta locations in five countries. More than 5,000 employees from all Vedanta subsidiaries and businesses operating in different geographies participated in the meeting. Employees were encouraged to ask questions and the chairman patiently and meticulously answered them all.

To maintain the open dialogue, it is equally important to engage with the influencer communities which includes media, the local governments and the socially relevant investors. The Company is present across eight countries in four different continents. All these regions differ in terms of operational and geographic challenges, business environment, economic development, culture and stakeholder expectations. Together, we are One Organization with One Vision.

Last year a comprehensive branding exercise was taken up to provide holistic and authentic ‘One Vedanta’ experience to stakeholders in all the ways they interact with the organisation. The logo refresh has also been adapted by all the divisions/group companies to align with the Company’s goal of being a unifying brand across its global operations.

The Code covers issues from human rights, insider trading and political contributions; to competition, conflicts of interest and confidentiality. It provides guidelines for all businesses to assist employees in meeting high standards of personal and professional integrity.

Last year a comprehensive branding exercise was taken up to provide holistic and authentic ‘One Vedanta’ experience to stakeholders in all the ways they interact with the organisation.

Other Stakeholders

Just like our employees and communities we feel other stakeholder like Civil society, Industry (supplier / customer), government and lending community like Shareholder, Investors and banks plays an important role in shaping our sustainability and development agenda. In the mining industry, they are partners in the process of identifying and resolving the challenges. We engage with the all these stakeholders in numerous ways through various forums.

Investors & Lenders

Both investors and lenders seek return on their investment. Volatility in the commodity markets, increased competition and resultant decrease in profit margin affects their returns. Thus, it is critical to communicate with them our plans, actions, outcomes and prospects, so that they can make informed investment decisions. While we continue to communicate with them through an array of statutory and proactive media vehicles, this year our parent group has added a new focused engagement mechanism to communicate with SRIs i.e The Sustainable Development Day.

Our policies and guidance notes are available to all employees through the corporate website, subsidiary portals and through awareness-training sessions.

LEVERAGING INDUSTRY PLATFORMS

Mining Indaba is the world’s largest mining investment conference and Africa’s largest mining event. Vedanta first attended the Mining Indaba in 2013 with the objective of raising awareness about Vedanta in Africa. Since then, we have enlarged our presence and visibility at the conference. It provides us an excellent platform to engage with multiple stakeholders such as governments, investors, financial institutions, suppliers plus the media, which augurs well with our goal to expand our footprint in the continent.


CORPORATE SOCIAL RESPONSIBILITY

CSR highlights

  • 1.75 mn* beneficiaries of our community investment
  • ₹ 160 Crore invested in community development
  • 4,032 village meetings held
  • Signed an MoU with Ministry of WCD, India to create 400 model Anganwadis “Nandghar” across India
  • Third party led Social Impact Assessment for major Indian operations
  • Re-aligned our community investment priorities based on community need assessment
  • Contribution towards nation building programmes such as Startup India, Beti Padhao - Beti Bachao, Swachh Bharat etc.

*Some beneficiaries may be enrolled in more than one project

Vedanta is committed to conduct its business in a socially responsible, ethical and environmentally friendly manner and to continuously work towards improving quality of life of the communities in its operational areas.

SOCIAL LICENSE TO OPERATE

Social License to Operate is based on the degree to which a corporation and its activities meet expectations of the local residents, the wider society and key constituent groups.

We are privileged visitors to some of the world’s most remote and underdeveloped regions. We have a duty to respect, learn from and create a shared understanding with those who host us. Connecting with our communities is not just the right thing to do, it is fundamental to our licence to operate.

CSR COMMITTEE

The Vedanta Board oversees and reviews CSR performance of the Group through its CSR Committee and Executive committee. The committee’s Chairman regularly updates the Board on its progress. The CSR Committee met twice during the year. The CSR Committee of Vedanta Limited is chaired by Mr. Naresh Chandra, and its members include Mr. Tarun Jain, Mr. Tom Albanese, Ms. Anuradha Dutt and Mr. Ravi Kant.

We believe local communities, particularly indigenous peoples, have the right to participate in decision making about access to natural resources and engage with them through group meetings, public hearings, grievance mechanisms, cultural events.

Our community grievance processes are a key step in preventing concerns from escalating into significant issues or disputes, risking the viability of operations. All public grievances are resolved as per our Grievance Redressal Technical Standard. All community incidents and grievances are recorded and categorised as negligible (1), minor (2), moderate (3), serious (4) or disastrous (5), and captured on a monthly basis.

No category 4 or 5 incidents were recorded in FY 2015-16, although lower-level incidents such as village road blockages and strikes were recorded, particularly related to employment and contractor issues, infrastructure projects and some operational issues including land and traffic management.

CSR COMMITTEE

The Vedanta Board oversees and reviews CSR performance of the Group through its CSR Committee and Executive committee. The committee’s Chairman regularly updates the Board on its progress. The CSR Committee met twice during the year. The CSR Committee of Vedanta Limited is chaired by Mr. Naresh Chandra, and its members include Mr. Tarun Jain, Mr. Tom Albanese, Ms. Anuradha Dutt and Mr. Ravi Kant.

BIGGEST-EVER COMMUNITY NEEDS ASSESSMENT

Understanding community needs and expectations is a complex and sensitive process. In FY 2015-16, we completed our most comprehensive, structured and collaborative community engagement to date. In partnership with governmental and non-governmental organisations, a detailed needs assessment was carried out for every community adjacent to our sites.

Drawing on dedicated local personnel to act as conduits between business and community, we undertook around 3,500 village and community meetings and around 260 panchayat meetings (village self-governments). Each community group had the opportunity to voice their opinions; the main concerns we heard were around livelihoods ) and the environment (primarily water and soil quality).

Going forward, we will be working with communities to help them understand our business better, including a focus on environmental hazards. A challenge will be managing expectations arising from this consultation. For example, where we cannot provide employment we will explore vocational training, entrepreneurship options (focusing on women) and other employability routes. The needs assessment will be repeated in three to four years’ time. It will be followed with rigorous assessment of projects against the needs of the community.

Human Rights

Our Human Rights Policy is aligned to the UN Guiding Principles on business and human rights and includes strict prohibition of child or forced labour – either directly or through contract labour. Additionally, our Code of Conduct commits us to comply with all relevant national laws and regulations, underpinning our approach to protecting the fundamental rights of our employees and contract workforce.

Human rights training is an integral part of our Sustainable Development Framework with around 28,770 man hours of training on human rights and Code of Conduct was provided. We support collective bargaining and recognise unions, with systems for employee development, remuneration and grievance redress. Our rigorous Environmental and Social Impact Assessments (ESIA) include the obligation to undertake human rights screening in all new acquisition activities.

Further details on our approach and performance related to Employee’s can be found in Vedanta SD Report 2015-16.

Community impact

We believe that the communities in and around our operations should get a fair share of the benefits, whether through employment, trade and enhanced infrastructure, or greater empowerment to voice opinion.

Our community investment strategy focuses on health, education, livelihoods and environment. In FY 2015-16, we invested ₹ 160 Crore benefiting over 1.75 mn people globally through building hospitals, schools and infrastructure, providing mid-day meals to children, developing employability skills, and engaging in community programmes. Our priority over the year was supporting rural livelihoods.

We believe that volunteering is a means of contributing to our local communities and a way to engage our employees, particularly when employees co-create community initiatives. Employee volunteering has brought many additional advantages: it has fostered a greater sense of responsibility among our staff and helped create a more motivated team and united culture.

Further details on our approach and performance related to Employee’s can be found in Vedanta SD Report 2015-16

Women empowerment and Child Welfare

It is important to give back what is earned for the greater good of the society. Community programmes that work towards eradication of poverty, child welfare and women empowerment will be Vedanta’s focus for our communities.

PROJECT NANDGHAR

Challenge

In India, the role of Anganwadi (child care centre) is critical in combating malnutrition, promoting pre and postnatal care, immunisation and early childhood education. Though the nation is home to over 1.37 mn Anganwadis, their impact is far from what’s desired. The need of the hour is to enhance the efficacy and efficiency of Anganwadis.

Project Nandghar is designed in line with Prime Minister of India’s vision of Beti Bachao Beti Padhao, Digital India, Swachh Bharat and Skilling India.

Intervention

With an aim to modernise the Anganwadi infrastructure in the country, Vedanta signed an MoU with the Ministry of Women and Child Development to construct 4,000 new age Anganwadis across India in three years.

Our model reimagines existing Anganwadis and enhances their role. To be developed in high-burden districts, they will be called Nandghars and shall be equipped with state-of-theart infrastructure including access to nutritious food, clean water, sanitation and perennial solar power supply.

They will enhance capacity utilisation of the infrastructure by being an access point for primary healthcare and hosting women’s skill development programmes in the free hours after the children’s education.

Highlights of Nandghar:

Education

a. Smart Learning kit for children
b. Interactive e-learning

Nutrition

Supplementary nutrition to be provided to children from 6 months to 6 years, and to pregnant and lactating mothers

Primary healthcare

Each cluster of 25-30 Aanganwadis to have a Medi-clinic and a Mobile Medical Unit, which will provide free OPDs, free medicines, and diagnostics for maternal and childcare

Livelihoods

a. Hosting women’s skill development programmes
b. Creation of micro enterprises and Self Help Groups (SHGs)

Outcome

Till date, 100 Nandghars have become operational. Once all 4,000 Nandghars are constructed, over 400,000 children and women will benefit every year. With this endeavour, we hope to significantly transform the lives of women and children in rural India and impact the prosperity of villages at large.

Community Engagement

We are committed to complete transparency in our communication with the communities and other stakeholder. The bedrock of our communication is how we engage with the communities around our assets. This ensures harmony and sustains our social licence to operate.

Our Engagement Approach:

Ask

Our dialogue begins with questions. Our stakeholders have access to a number of platforms to reach out to Vedanta personnel and voice concerns

Answer

We disclose not just because we want to be heard but because we are answerable. Equal attention is laid on providing a constructive response.

Analyse

We have established a robust investigation process for complaints reported via the Whistle-

Blowing Mechanism, Sustainability ID and Group Communications ID.

Align

We work hand-in-hand with our stakeholders like govts., communities industry bodies and NGOs and align our goals and actions with high priority areas of the nation. The feedback of all engagements becomes part of our materiality identification exercise.

Act

There is no stronger proof of commitment to the cause, than demonstrable action. We back our words with acts that move the needle towards promised outcomes.

Communicating Constructively

Communities

Listening to the communities, understanding their concerns and resolving issues is key to pre-empting and avoiding social conflicts. We have adopted a dual approach to community engagement – we undertake focussed CSR activities to create a positive social impact and ensure that the benefits of these activities are well-communicated to the community and the linkage to Vedanta is well-established. We also proactively engage with the communities to negate any trust deficit issues.

Exchanging Ideas with Partners

Cairn India organised a CSR Partners’ Conclave at Barmer in March 2016 to encourage partners to showcase milestone projects. The conclave featured an interactive cross-functional session where partners shared the challenges, lessons learnt and the best practices. Vibrant exchange of ideas; suggestions for improvement and opportunities to bring about operational improvements where the hallmarks of the conclave.

MODEL VILLAGE PROGRAMME

Approach:

The project is based on “rights based approach” and access to health care, education, sanitation and income have been seen as key focus points.

The aim is to make a positive holistic impact on the villages through focused interventions for women and child development.

Influencing positive behavior change and sensitisation of community towards gender issues, while encouraging increasing participation of the communities in local decision making are some of the key highlights of the project.

The Rights established by the National Policy on Children in India as well as United Nations Rights of child and the UN’s Sustainable Development Goals were incorporated in the project.

Intervention:

Programs will focus on converging existing and government run programmes in the areas of:

Health, Education, Sanitation and Livelihood and Energy

Key Programs undertaken under Model

Village Project:

100% coverage of pregnant women for access to nutrition

100% coverage of households through IHTs

100% access to households to drinking water

 

Name of village

Population Potential Beneficiaries
HZL Ganeshpura 1276 651
BALCO Dondro 1356 690
Vedanta Jsg Banjari 491 230
TSPL Bana Wala 1920 920
Sterlite Copper SV Puram 621 300
Cairn Mundhon ki Dhani 726 335