| GLOBAL CONTEXT |
AS A GLOBALLY DIVERSIFIED NATURAL RESOURCES
COMPANY, IT IS NATURAL FOR US TO BE PART OF THE
POSITIVE CHANGE WE WISH TO SEE IN THE WORLD. |
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| The world, as we see it today, would not have been possible without leveraging the rich resources, nature has bequeathed to us. The resources we bring to the market serve as building blocks of modern progress. Iron ore forms the bedrock of infrastructure; copper is used to connect people through telecommunications and in lifesaving medical devices; and aluminium is used across a myriad of products. In addition, we generate electricity that lights up the lives of millions and our crude oil is an essential component of thousands of secondary products. |
| We keenly observe global megatrends with a view to contribute towards addressing global economic, social and environmental challenges and opportunities. Enumerated below are some of such global issues which need immediate attention and Vedanta's contribution towards each of these issues. |
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| CLIMATE CHANGE |
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At Vedanta, we have been doing our bit through a
two-pronged approach; finding more carbon neutral solutions as well as emphasising energy efficiency
through innovative technology. |
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| Climate change is one global challenge that looms large at the possibility of sustainable development. Fortunately, there is a growing consensus on global warming and its repercussions on life and business as usual. In December 2015, 195 countries signed a historic agreement at COP21 in Paris towards limiting global warming to below 2o Celsius. This agenda is a mammoth task and necessitates participation from all quarters. It is crucial for each country to provide the right incentives for the development and diffusion of climate-friendly processes and practices. |
| We report our GHG emissions as per the requirements of the World Business Council for Sustainable Development (WBCSD), World Resource Institute (WRI) and Carbon Disclosure Project (CDP). We have met our energy saving target for this year and are on a continuing journey to improve upon all aspects of Sustainable Development. |
| We are committed to intensify our responsibility towards reducing carbon stress by leveraging the power of ingenuity and technology. We are in the process of formulating a strategy on Climate Change that is aligned with the Intended Nationally Determined Contribution (INDC), for the countries in which we operate. Our long-term strategy focusses on diversification of our energy portfolio and water sources, at all operations where it is physically and economically feasible. |
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| DOWNTURN IN COMMODITY MARKETS |
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In the reporting year, we furthered our thrust on innovation to drive operational excellence by instituting an 'Innovation Task Force' chaired by our CEO. |
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| Given the recent commodity market volatility, with price fall recording a multi-year low for most of the commodities, these are testing times for the mining industry globally. Our diversified business model and low cost portfolio of assets, give us the resilience to manage this volatility. |
| We are focussed on optimising costs and generating industry leading margins due to the suit of world-class and low-cost assets in Zinc, Oil & Gas, and Iron Ore. Besides, we are focussing on reducing capex, while preserving growth options and generating efficiencies across the business to survive the weak price environment. |
| The objective of our Innovation Task Force is to increase the number of patent filings to have commercial control over innovation, bring down cost of production by bringing disruptive technology like use of nanotechnology and advancing in-house technological innovations in areas of exploration, processing, waste disposal and new product development. |
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| POVERTY & INEQUALITY |
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A vast majority of our operations are located in economies which require a fillip such as India and Africa. We align ourselves with their needs and contribute to economic and social development. |
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| Vulnerability to exploitation, susceptibility to violence, social and economic stratification persisting over generations - the consequences of poverty are far worse than what meets the eye and they can impede a country from progressing in all aspects. We believe mining sector can and should contribute significantly to reduce poverty, through creation of direct & indirect jobs, empowerment of neighbouring communities and contribution to economy. |
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| US$ 640 mn |
Contribution towards wages/
salaries, pension & other |
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| US$ 3.2 bn |
Contribution in the
form of taxes |
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| US$ 37 mn |
Contribution towards
various CSR projects |
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| We provide employment to 67,000 people through our operations and also create opportunities for downstream industries to generate jobs for millions. A case in point is our proposed plug-and-produce aluminium park in India, which will attract a large number of aluminium-based industries in the state of Odisha, generating significant revenue as well as creating direct & indirect employment in the region. Similarly in Africa too, we empower youth with high-paying jobs; KCM invests in building capabilities of the youth in Zambia and then absorbs them. |
| We are also equally determined towards raising the social status of our neighbouring communities through focussed interventions in strategic growth enablers like education, healthcare and skill building, over and above paying our dues to the state and central governments. |
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| We recognise that eradicating poverty in all its forms and dimensions, including extreme poverty, is the greatest global challenge and an indispensable requirement for sustainable development. |
| Excerpt from the United Nations' 2030
Agenda for Sustainable Development. |
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| GENDER DIVERSITY |
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Vedanta practices and promotes equal opportunities. Gender diversity within workforce, and CSR initiatives with over 38,000 women beneficiaries highlight our commitment towards women empowerment. |
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| Women hold up half the sky. If empowered, they have the potential to not just change the face of the society, but also contribute to economic growth of the country. |
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We represent one of the highest
numbers of women in senior
management in the industry. |
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| 9.4% |
| women representation in
our total employee strength
FY 2014-15: 8.6% |
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| Our Board has 12.5% representation of women and has set a target to reach over 33% by 2020. This diversity focus is visible across hierarchies and functions. In a male dominated sector like mining, five women in Vedanta Resources' Aluminium manufacturing plant in Lanjigarh are in-charge of the two most important departments - central control room laboratory and distribution control system. This is not just a one-off case, but part of a well thought out group-wide strategy to appoint women in key revenue generating roles at the leadership level. |
| We are also signatory to the 'CEO Statement of Support' for the United Nations' Women's Empowerment Principles. |
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India's GDP can expand by
a whopping 27%, if the
number
of female workers
increases to
the same level
as
that of men. |
Christine Lagarde | Managing Director
International Monetary Fund |
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| For more information visit our group companies |
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