Vedanta Ltd.'s Present Steps Aligned with "Core Purpose and Values"

 


Indian mining giant Vedanta Ltd. paints a vibrant picture of responsibility with its "Core Purpose and Values." Seven intricate threads form their canvas: Compassionate Care for a thriving planet and its people, unwavering Trust built on ethical foundations, the Entrepreneurial spirit driving progress, innovative solutions Pioneered for a sustainable future, relentless pursuit of Excellence in all they do, unyielding Integrity guiding their every step, and Respect for every individual and stakeholder. This tapestry extends beyond shareholder gains, embracing a "triple bottom line" of People, Planet, and Prosperity. Through strong governance, responsible innovation, and dedicated ESG initiatives, Vedanta weaves a vibrant story of shared success, ensuring everyone benefits from their unwavering commitment to a better tomorrow.


Care:

  • Climate Action: Vedanta aims to achieve carbon neutrality by 2050, investing in renewable energy like solar and wind power for self-sufficiency at mines and smelters. They've reduced carbon emissions by 8.5% in FY23 compared to FY22.

  • Water Conservation: Implementing zero liquid discharge plants at several units, recycling wastewater, and developing community water projects to meet local needs.

  • Community Development: Partner with NGOs and local communities on healthcare initiatives like mobile medical vans and infrastructure development. They also support education through scholarships and skill development programs.

Trust:

  • ESG Reporting: Vedanta publishes comprehensive ESG reports aligned with GRI standards, detailing sustainability performance and stakeholder engagement efforts.

  • Governance Enhancements: Strengthening anti-corruption measures, establishing independent whistleblower channels, and adopting board diversity policies.

  • Stakeholder Engagement: Conducting regular stakeholder dialogues, community meetings, and grievance redressal mechanisms to ensure transparency and address concerns.

Entrepreneurship:

  • Innovation Hubs: Establishing innovation hubs to incubate and support employee-driven ideas aimed at improving efficiency, safety, and sustainability.

  • Circular Economy Initiatives: Exploring ways to reuse and recycle waste materials within their operations, reducing reliance on virgin resources.

  • Supporting Startups: Partnering with startups through incubation programs and funding initiatives to foster innovation in the mining and metals sector.

Innovation:

  • R&D Focus on Sustainability: Investing in research and development of clean technologies like bioremediation for waste treatment and green mining practices.

  • Digital Transformation: Implementing digital solutions like automation and AI to optimize operations, enhance safety, and improve data-driven decision-making.

  • Partnerships for Tech Development: Collaborating with research institutions and technology companies to develop and deploy cutting-edge solutions for sustainable mining.

Excellence:

  • Operational Efficiency Targets: Setting ambitious targets for production, safety, and cost reduction across all operations, driving continuous improvement.

  • Talent Development: Investing in employee training and development programs to upskill and empower their workforce for future challenges.

  • Benchmarking and Best Practices: Benchmarking performance against industry leaders and actively adopting best practices to maintain high standards.

Integrity:

  • Ethics & Compliance Programs: Conducting regular ethics training and implementing robust compliance programs to prevent misconduct and corruption.

  • Transparency in Supply Chain: Collaborating with suppliers to enforce ethical sourcing practices and promote responsible mineral sourcing throughout the supply chain.

  • Independent Audits & Reviews: Undergoing independent audits and reviews of their environmental, social, and governance practices to ensure accountability and transparency.

Respect:

  • Diversity & Inclusion: Promoting a diverse and inclusive workplace culture through initiatives like unconscious bias training and equal opportunity recruitment practices.

  • Community Engagement: Actively engaging with local communities to understand their needs and concerns, addressing them through participatory development projects.

  • Human Rights Commitment: Upholding human rights principles in all operations, adhering to international labor standards, and prioritizing employee well-being.

Potential Future Effects of Vedanta's "Core Purpose and Values"

  • Enhanced Brand Reputation: Vedanta's commitment to sustainability and stakeholder engagement can attract new customers, investors, and talent, strengthening its brand and market position.

  • Reduced Operational Costs: Investments in clean technologies, water conservation, and waste management can lead to long-term cost savings and resource efficiency improvements.

  • Improved Operational Resilience: Proactive sustainability measures can mitigate future environmental and social risks, ensuring operational continuity and resilience against regulatory changes and stakeholder pressure.

  • Increased Innovation and Productivity: Fostering an entrepreneurial culture and investing in R&D can lead to groundbreaking technologies and improvements in productivity, boosting operational efficiency and profitability.

  • Stronger Social License to Operate: Building trust with communities and addressing their concerns can secure Vedanta's social license to operate, facilitating smooth expansion and future projects.


Capital Allocation

  • Vedanta has invested significantly in growth projects as part of a strategic capital allocation plan:

    • Invested US$ 1.2 billion in FY2023 as growth capital expenditure

    • Projects for expanding capacities in the aluminum and zinc sectors

    • Focus on backward integration and increasing value-added product portfolio

  • Solid governance practices around project evaluation and risk management support capital investments.

  • Volume expansion and integration projects will strengthen Vedanta's competitive positioning in key business segments.

Organizational Architecture

  • A governance structure for sustainability was established with the Board, executive committee, CoPs across business units, and transformation office.

  • Incentives for ESG performance integrated through linking executive pay and employee stock options.

Cost Management

  • Vedanta has undertaken several operational efficiency improvement projects across its aluminum sector to reduce costs. These include projects for energy optimization, improving fuel utilization, gas recovery systems, etc.

  • Natural gas usage has commenced at the Lanjigarh Alumina Refinery, potentially saving 120,000 tonnes of CO2 annually.

  • R&M project on a 600 MW unit at Jharsuguda smelter led to an estimated emissions reduction of 370,000 tonnes of CO2 annually.

  • Such projects have the dual benefit of lower emissions and cost savings through efficiency gains.

Risk Management

  • A comprehensive climate risk assessment was conducted and incorporated into the strategy.

  • Safety infrastructure upgrades and critical risk management programs were initiated to mitigate risks.



Corporate Governance

  • The board has 50% independent directors.

  • Robust ESG policies and frameworks for implementation through the Vedanta Sustainability Framework

  • External assurance and ratings demonstrate good governance. Vedanta improved its ranking to 6th globally in the metals & mining sector as per the DJSI assessment.

This demonstrates Vedanta's strategic approach across crucial business dimensions, focusing on governance, risk management, and sustainability.



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