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| Overview |
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| OUR STRATEGY & APPROACH |
| Our Sustainable Development Model resides at the heart of our business strategy. Developed keeping in mind multiple sustainability imperatives - materiality and core values of Vedanta, UNGC's 10 principles, United Nation's SDGs and standards set by International Finance Corporation (IFC), ICMM and OECD - the model acts as a driving force behind every intention, decision and action at Vedanta. |
| In 2011, we instituted the Sustainable Development Model recognising three pillars - Responsible Stewardship, Building Strong Relationships and Adding & Sharing Value - as our stepping stones to advance in our sustainability journey. In the recent past, we added a fourth pillar, Strategic Communications, reflecting our reinforced commitment towards greater transparency, deeper engagement and responsible advocacy. |
| Together, these four pillars are playing a critical role in ensuring long-term growth for our businesses, sharing long-term value for all our stakeholders and validating our licence to operate. |
| Our Sustainable Development Model is underpinned by a Sustainable Development Framework that helps each business put the model into practice. The Framework comprises a number of policies, standards and guidance notes directing consistent and systematic management of sustainability performance across businesses. |
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MATERIALITY
| We conducted a comprehensive group-wide materiality process comprising identification of material sustainability topics, prioritisation of these topics and verification of our analysis. |
| This meant commissioning an external consultation process with six groups: Shareholders and Lenders, Industry (suppliers, customers & peers), Civil Society (NGOs & other organisations), Governments, Employees and Communities. To get the management perspective, internal leadership and operational management workshops combined with interviews and ranking exercises were conducted. This formed the basis for us to guide the consensus on, and prioritisation of, material issues to be managed, measured and disclosed through our sustainability reporting process. |
| This exercise lent us a universe of aspects unique to different stakeholders, which were sieved through two measures: 'Relevance to Vedanta's Stakeholders' and 'Relevance to Vedanta Management'. What emerged as key material aspects are an eclectic mix of sustainability issues that impact or are relevant to us and our stakeholders. |
| This year, we revalidated these material aspects by mapping them with our various engagement outcomes and found consistency with previous year's materiality in majority aspects. |
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| MATERIALITY MATRIX |
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| MATERIAL ASPECTS |
| Outcomes from these engagements are plotted on the matrix above, with the top-right corner indicating highest priority issues. We have considered the highest priority issues for both our stakeholders and us, as the scope for this year's reporting. We have also mapped each aspect with the internal and external stakeholder sets that get impacted by the relevant aspect. |
SUSTAINABLE DEVELOPMENT JOURNEY
| In the journey of ensuring sustainable development for us and our stakeholders, we have surely come a long way.
Be it investing our time and resources in introspecting our actions or formulating blueprints for collective growth, be
it adopting tried and tested systems or thinking out of the box, be it aligning our standards with industry benchmarks or charting our own records - we have taken significant strides in ensuring long-term growth for all stakeholders. |
| Over the years, we have evolved to a performance-driven phase. Sustainability goals have become an indelible part of our business targets. A deeper sense of ownership is felt across businesses, departments and individuals of Vedanta. This has translated into concrete outcomes, maximised value and reinforced trust. |
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| FY 2010-11 |
Bringing in a Board-led
Sustainability Committee |
| Chaired by an independent director |
Introducing the Sustainable
Development Model |
| Responsible Stewardship, Building Strong Relationship, Adding & Sharing Value |
| External Review (URS - Scott Wilson) |
| To review Vedanta's approach to sustainable development |
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| FY 2011-12 |
Integrating the Sustainable
Development Model |
| with business strategy |
Partnering with Independent
Consultant |
to build Vedanta Sustainable
Development Framework - policies,
standards and guidance notes |
Rolling out Vedanta Sustainable
Development Framework (VSF) |
to implement the model - policies &
standards as per IFC, ICMM and
OECD guidelines |
| Gap Analysis (Internal) |
to map the existing practices with
the VSF |
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| FY 2012-13 |
Rolling out Vedanta Sustainable
Development Framework continues |
along with internal gap analysis in
support and consultation with
business management teams |
Businesses started embedding
Vedanta Sustainable Development
Framework |
integrating existing management
systems with VSF |
Group-wide training on Vedanta
Sustainable Development Framework |
| with train-the-trainer approach |
Introducing Vedanta Sustainability
Assurance Programme (VSAP) |
an annual internal review
mechanism to measure VSF
implementation |
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| FY 2013-14 |
Businesses started embedding
Vedanta Sustainable Development
Framework |
training and implementation of
policies and standards |
External Review Concluded
(URS - Scott Wilson) |
all recommendations got
successfully closed |
| Sustainability linked with Remuneration |
| sustainable development KPIs linked to executive remuneration |
Vedanta Sustainability Assurance
Programme (VSAP) into its Second
Year of Implementation |
| supported by external auditors |
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| FY 2014-15 |
Introducing 'Strategic
Communications' |
as a new pillar of our Sustainable
Development Model |
Rolling out of Vedanta Sustainable
Development Framework continues |
introduction of safety performance
standards, formal safety risk
assessment, industrial hygiene
baseline assessment and safety
leadership coaching |
VSAP into its Third Year of
Implementation |
| revised as per the material priorities, supported by external auditors |
Environment & Social Review of
VSAP started |
| external review |
Revisiting our Community Need
Assessment Studies |
aligning all community projects with
updated studies |
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| FY 2015-16 |
Environment & Social Review of
VSAP continued |
| external review |
VSAP into its Fourth Year of
Implementation |
revised as per the material priorities
with more emphasis and focus on
safety by inclusion of safety
performance standards, supported
by external auditors |
| Advancing Accountability |
by incorporating safety performance
standards into executive remuneration |
Social Impact Assessment Studies -
HZL & Cairn India |
aligning all community projects with
updated studies |
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| For more information visit our group companies |
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