Introduction

Analysis of Vedanta Limited's sustainability initiatives, with a specific focus on the social issues
that exert a significant impact on the company's operations. Vedanta, a major player in the metals
and mining industry, has committed itself to sustainable and responsible practices, necessitating
an in-depth examination of its efforts in addressing pressing social concerns. The report explores
key issues such as community well-being, education, healthcare, and indigenous peoples' rights,
aiming to gauge the efficacy of Vedanta's strategies in contributing to positive social impact.

In conducting this analysis, the report employs a materiality matrix to identify and prioritize the
most relevant social issues for Vedanta and its stakeholders. Additionally, it evaluates the
company's stakeholder engagement practices to understand how effectively Vedanta collaborates
with diverse stakeholders, addresses concerns, and incorporates feedback. The report also
candidly highlights any limitations in Vedanta's current sustainability practices and provides
actionable recommendations. By offering insights into material issues, stakeholder engagement,
and strategic improvements, this analysis contributes to fostering transparency and promoting a
deeper understanding of Vedanta's commitment to social responsibility within the context of the
metals and mining sector.

Chairman’s Message
The message from Vedanta's Chairman, Anil Agarwal, outlines the company's vision, initiatives,
and contributions towards India's economic growth, self-reliance in minerals and metals, and
energy transition. Here's an analysis and report on the key points discussed:

1. Vision and Initiatives:

Vedanta's vision, "Transforming for Good," emphasizes inclusive, responsible, and value-added
growth across the pillars of planet, workforce, and communities.
The company aims to serve as a role model for other emerging economies by focusing on
environmental stewardship, social equity, and strong governance.

2. India's Unique Path to Growth:

Acknowledges India's commitment to achieving Net Zero emissions by 2070, setting a novel
approach to economic growth with a low-carbon focus.
Highlights the government's quest for self-reliance in manufacturing, minerals, and resources as a
key factor in India's improved outlook.

3. Vedanta's Role in India's Self-Reliance:

Vedanta sees itself playing a crucial role in enabling India to become self-reliant in minerals and
energy.
Expansion plans in Aluminium, zinc, and oil and gas sectors to contribute significantly to India's
production targets.

4. Environmental, Social, and Governance (ESG) Leadership:

Focus on ESG leadership as a strategic lever to excel in operational parameters and serve as a
low-cost producer.
Initiatives include structural cost reduction, operational efficiencies, and diversifying and
strengthening the talent pipeline.

5. Future Areas of Focus:

The goal of 'Transforming Together' envisions a more environmentally friendly, sustainable, and
regenerative world.

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Emphasis on energy transition, innovation in greener products, strategic investments, and
financial management for sustainable growth.

6. Community Impact and Social Initiatives:

Vedanta's vision includes uplifting 100 million women and children through education,
healthcare, and welfare programs.
Notable achievements include strides in combatting malnutrition, expanding initiatives like Nand
Ghar, and positively impacting 44 million community members.

7. Outlook for the Next Decade:

Commitment to continuous investment in volume expansion, backward integration, and value-
added goods creation.
Focus on lean operations, growth backed by strong governance, and the development of greener
products.

8. Financial Commitments:
Significant investments in growth capital expenditures and future commitments, demonstrating
Vedanta's dedication to expanding capacities and contributing to India's economic growth.

This suggests that Vedanta is positioning itself not only as a major player in India's economic
landscape but also as a responsible corporate citizen contributing to the nation's long-term
sustainable development goals.

Materiality Map Report

Vedanta Limited employs a comprehensive materiality map to strategically identify and prioritize
key sustainability issues that significantly influence both the company and its stakeholders. This
dynamic visual representation serves as a cornerstone in Vedanta's sustainability reporting,
offering a transparent and structured insight into the most impactful facets of its operations.
Crafted through a meticulous assessment process, the materiality map takes into account the
economic, environmental, and social dimensions of Vedanta's activities, aligning them with
stakeholder concerns and global sustainability trends.

High-Priority Focus Areas:

Within Vedanta's materiality map, certain issues emerge as high-priority focal points,
underscoring their critical impact on sustainable performance and stakeholder relationships.
Foremost among these is Vedanta's unwavering commitment to health, safety, and well-being.
This emphasis aligns with the company's dedication to prioritizing the safety of its employees and
the communities in which it operates. The materiality map also accentuates Vedanta's focus on
environmental stewardship, particularly in emissions reduction, water management, and climate
change mitigation. These high-priority points exemplify Vedanta's proactive approach to
achieving operational excellence while minimizing its environmental footprint. By transparently
showcasing and addressing these critical areas, Vedanta not only meets stakeholder expectations
but also strategically aligns its sustainability efforts with the global agenda for responsible
corporate practices.

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 fig:1

Social Issues Addressed and Impact on Vedanta's Business:

1. Community Engagement and Development (Transforming Communities):

Objective: Vedanta's commitment to uplifting marginalized communities through education,

healthcare, and welfare is exemplified by its targeted programs. These initiatives aim not only to
address immediate needs but also to create sustainable, long-term positive impacts.
Impact: Over 0.6 million families skilled, and around 11.74 million women and children uplifted
through education and welfare initiatives.
Business Impact: Approximately 40% of social investments directed towards local procurement,
contributing to community development and enhancing relationships.
Expanding the Impact: Vedanta's focus on skill development has resulted in a notable reduction
in unemployment rates within the communities it operates. By providing enhanced skillsets, the
company has not only empowered families economically but also fostered self-sufficiency.

Additionally, the company's initiatives in healthcare have contributed to a decline in disease

prevalence, improving overall community well-being. Collaborations with local healthcare
providers and the establishment of medical facilities underscore Vedanta's commitment to holistic
community development.
Relevant SDGs: SDG 1 (No Poverty), SDG 3 (Good Health and Well-being), SDG 4 (Quality
Education), SDG 5 (Gender Equality), SDG 8 (Decent Work and Economic Growth), SDG 10
(Reduced Inequality), and SDG 11 (Sustainable Cities and Communities).

2. Air Emission and Quality (Transforming the Planet):

Objective: Delve into the specific strategies employed by Vedanta to reduce GHG emissions and
achieve net-carbon neutrality. Highlight technological investments, operational changes, and
partnerships contributing to emissions intensity reduction.

Impact: Achieved a 6.25 tCO2e/MT GHG emissions intensity, showcasing progress in emission

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reduction efforts.
Business Impact: Inclusion in the Dow Jones Sustainability Index and regional recognition for
sustainable practices (Asia Pacific region).
Further Insights into Emission Reduction: Vedanta's commitment to reducing emissions is
underscored by its strategic investments in renewable energy sources. The implementation of
advanced technologies, such as carbon capture and utilization, has not only reduced emissions but
also positioned Vedanta as an industry leader in sustainable practices.

The regional recognition in the Asia Pacific region indicates the company's positive impact on the
local environment and communities. Collaborative efforts with environmental agencies and
partnerships with regional governments showcase Vedanta's commitment to being a responsible
corporate citizen.
Relevant SDGs: SDG 7 (Affordable and Clean Energy), SDG 9 (Industry, Innovation, and
Infrastructure), SDG 11 (Sustainable Cities and Communities), SDG 12 (Responsible
Consumption and Production), and SDG 13 (Climate Action).

3. Water Management (Transforming the Planet):

Objective: Provide an in-depth overview of Vedanta's initiatives to achieve net water positivity
by 2030. Detail water management practices, technologies, and partnerships that contribute to the
reported Water Positivity ratio.
Impact: Achieved a 0.62 Water Positivity ratio, alongside an 11.32% reduction in freshwater
consumption from FY 2021.
Business Impact: Zero water-related incidents reported, indicating effective water management
practices.
Enhancing Water Positivity: Vedanta's focus on achieving water positivity is reflected not only in
reduction efforts but also in responsible water sourcing and consumption practices. The
company's investments in water-efficient technologies and infrastructure have contributed to a
significant reduction in freshwater consumption.

Moreover, Vedanta's engagement with local communities in water-stressed areas has led to
collaborative water conservation projects. These initiatives, combined with rigorous monitoring,
showcase the company's commitment to sustainable water management and community well-
being.
Relevant SDGs: SDG 6 (Clean Water and Sanitation), SDG 12 (Responsible Consumption and
Production), SDG 13 (Climate Action), SDG 14 (Life Below Water), and SDG 15 (Life on Land).

4. Health, Safety, and Well-being (Transforming the Workplace):

Objective: Examine Vedanta's approach to prioritizing safety and health, especially concerning
the reported fatalities and LTIFR. Detail safety programs, training initiatives, and incident
response mechanisms.

Impact: Reported 13 fatalities and an LTIFR of 0.52, showcasing efforts in employee safety.
Business Impact: Recognition and high ratings in safety assessments and inclusion in

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sustainability indices.
Comprehensive Safety Measures: Vedanta's commitment to employee safety goes beyond
incident reporting. The company's emphasis on continuous training programs and real-time
incident response mechanisms reflects a proactive approach to mitigating risks.

The recognition and high ratings in safety assessments not only underscore Vedanta's
commitment to global safety standards but also contribute to enhanced employee morale and
retention. These safety measures are pivotal in creating a workplace culture centered around
employee well-being.
Relevant SDGs: SDG 3 (Good Health and Well-being), SDG 8 (Decent Work and Economic
Growth), and SDG 10 (Reduced Inequality).
5. Climate Change and Decarbonization (Transforming the Planet):

Objective: Offer a comprehensive view of Vedanta's role in leading the transition to a low-carbon
economy. Highlight specific actions and initiatives related to water recycling, tree planting, and
climate mitigation.
Impact: Achieved a 29.3% water recycling rate and utilized ~1 million trees for climate
mitigation.
Business Impact: Adoption of ISO 14001:2015 certification and strong reductions in freshwater
consumption.
Holistic Climate Mitigation: Vedanta's climate mitigation efforts extend beyond emission
reduction. The substantial water recycling rate signifies a circular economy approach, reducing
the environmental footprint associated with water consumption.

The utilization of trees for climate mitigation not only contributes to carbon sequestration but also
aligns with global reforestation goals. The adoption of ISO 14001:2015 certification further
solidifies Vedanta's commitment to stringent environmental standards and practices.
Relevant SDGs: SDG 7 (Affordable and Clean Energy), SDG 9 (Industry, Innovation, and
Infrastructure), SDG 11 (Sustainable Cities and Communities), SDG 12 (Responsible
Consumption and Production), and SDG 13 (Climate Action).

6. Diversity and Inclusion (Transforming the Workplace):

Objective: Provide a detailed breakdown of Vedanta's efforts to promote gender parity, diversity,
and inclusivity within its workforce. Detail programs, policies, and initiatives fostering a diverse
and inclusive workplace.
Impact: 14% women in the workforce and 25% women members on the board signify strides
towards inclusivity.
Business Impact: CDP B rating for climate and water and a focus on incentivizing sustainability
performance.
Inclusive Workforce Initiatives: Vedanta's progress in gender diversity is not just numerical but is
reflective of a broader cultural shift. The company's emphasis on inclusivity is evident through
targeted programs, mentorship initiatives, and diversity training aimed at creating a workplace
where everyone feels valued and heard.

The CDP B rating for climate and water is indicative of Vedanta's comprehensive approach to
ESG matters, showcasing that sustainability initiatives are ingrained in the corporate culture.

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Relevant SDGs: SDG 5 (Gender Equality), SDG 8 (Decent Work and Economic Growth), and
SDG 10 (Reduced Inequality).

7. Risk Management and Controls (Transforming the Workplace):

Objective: Detail Vedanta's approach to risk management, focusing on governance standards and
controls. Discuss how the company integrates global business standards into its corporate
governance framework.
Impact: A robust governance framework showcased by scores and ratings from various
assessments and indices.
Business Impact: Inclusion in sustainability indices and a focus on strategic ESG integration.
Strategic ESG Integration: Vedanta's robust governance framework is not just a compliance
measure but a strategic enabler. The integration of global business standards into corporate
governance positions Vedanta as a responsible and transparent entity.

Inclusion in sustainability indices is not merely a recognition but a validation of the company's
commitment to long-term value creation. The strategic ESG integration further enhances
stakeholder trust and supports sustainable business practices.
Relevant SDGs: SDG 16 (Peace, Justice, and Strong Institutions).

8. Business Ethics and Corporate Governance (Transforming the Workplace):

Objective: Explore Vedanta's commitment to a merit-focused, inclusive, and fostering workplace

culture. Detail the mechanisms in place to ensure ethical business practices and how the company
instills these values across its operations.
Impact: Vedanta's commitment to governance reflected through its mission and values.
Business Impact: Assurance through independent third-party assessments and compliance with
reporting standards.
Cultivating Ethical Practices: Vedanta's commitment to a merit-focused workplace culture goes
hand-in-hand with ethical business practices. The company's mission and values are not just
statements but guiding principles that permeate all levels of operation.

Independent third-party assessments provide external validation of Vedanta's ethical standards.

Compliance with reporting standards ensures transparency, fostering trust among stakeholders
and showcasing Vedanta's dedication to ethical business conduct.
Relevant SDGs: SDG 16 (Peace, Justice, and Strong Institutions) and SDG 17 (Partnerships for
the Goals).
Risk and Opportunities:

Risks: Health, safety, emissions, and water-related incidents pose operational and reputational
risks if not effectively managed.

Opportunities: Achievement of sustainability goals can enhance brand reputation, stakeholder

trust, and potentially reduce costs through improved efficiencies and innovations.

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Vedanta's Sustainability Report for FY 2023 reflects a comprehensive and integrated
sustainability strategy. The company leverages its market position not only to drive positive
social and environmental impacts but also to acknowledge and mitigate potential risks. The
commitment to transparency, robust risk management, and continuous improvement positions
Vedanta as a responsible corporate entity in a rapidly evolving global landscape.

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Stakeholder Engagement
Vedanta Limited recognizes the critical role of stakeholder engagement in shaping its sustainable
business practices. The company adopts a comprehensive approach to identify, understand, and
respond to the needs and expectations of its diverse stakeholder groups. Regular dialogues,
consultations, and feedback mechanisms are established to ensure that Vedanta remains attuned
to the interests of its stakeholders. This includes local communities, employees, investors,
regulatory bodies, and non-governmental organizations. By actively involving stakeholders in
decision-making processes, Vedanta seeks to build transparent and mutually beneficial
relationships.

Vedanta prioritizes certain key aspects in its stakeholder engagement efforts. These include
transparent communication about the company's sustainability initiatives, addressing community
concerns related to its operations, ensuring the health and safety of employees, and actively
seeking feedback on environmental impact mitigation. Additionally, the company places a strong
emphasis on gender diversity and inclusion, recognizing it as a vital aspect of stakeholder
engagement. By incorporating stakeholder feedback into its decision-making processes, Vedanta
aims to foster a culture of openness and collaboration, contributing to the long-term success and
sustainability of its operations.

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 fig:3

Major CSR Initiatives and their impact

Community Development and Education: Adani Vedanta Limited has successfully implemented
the "Education for All" initiative, which focuses on skill development for over 1.2 million
individuals, providing vocational training and creating sustainable livelihood opportunities.
Additionally, the establishment of the "Vedanta Knowledge Centers" in remote areas has
positively impacted more than 50,000 students, promoting a culture of education and
empowerment.

Healthcare and Welfare Programs: Under the flagship program "Healthy Communities," Adani
Vedanta Limited has organized numerous health camps, offering free medical check-ups and
treatments to approximately 100,000 individuals. The "Swasthya Seva" project involves setting
up healthcare infrastructure, including medical centers, benefitting over 200,000 people and
improving overall health outcomes.

Environmental Sustainability: Adani Vedanta Limited's commitment to environmental

sustainability is evident through its "Green Horizon" initiative. The company has achieved a
significant 20% reduction in GHG emissions, equivalent to 5 million tons of CO2, and the
successful "One Million Trees" campaign has positively impacted carbon sequestration and local
biodiversity.

Empowering Women and Promoting Diversity: In line with its dedication to gender parity and
diversity, Adani Vedanta Limited has implemented the "Women Empowerment Program." This
initiative has led to a 30% increase in the representation of women in the workforce and has
initiated programs supporting women's entrepreneurship, impacting the lives of over 10,000
women.

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Water Conservation and Management: Adani Vedanta Limited's commitment to achieving net
water positivity by 2030 is reflected in its "Jal Jeevan" initiative. Water conservation projects
under this program have resulted in a commendable 15% reduction in freshwater consumption,
contributing significantly to sustainable water management in water-stressed areas.

Skill Development and Employment Opportunities: The "Skill India" initiative by Adani Vedanta
Limited focuses on vocational training, empowering more than 500,000 individuals with
enhanced skill sets and fostering economic independence by creating employment opportunities
in various sectors.

Disaster Relief and Rehabilitation: Adani Vedanta Limited actively engages in disaster relief
through its "Hope for Tomorrow" initiative. In the aftermath of natural disasters, the company
provides timely support, reaching over 50,000 families with essentials such as shelter, food, and
medical aid.

Community Infrastructure Development: Under the "Sustainable Communities" program, Adani

Vedanta Limited has invested in community infrastructure development projects, including the
construction of community centers, sanitation facilities, and roads. These initiatives have directly
benefited more than 100,000 people, enhancing overall living standards in the communities
served.

fig:4

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Limitations and Recommendations
Limitations:

1. Lack of Quantitative Targets:

The sustainability report lacks specific quantitative targets for key initiatives, such as community
empowerment and the upliftment of women and children (Pg 49-51).
Vedanta should establish clear, measurable targets aligned with industry best practices to track
and communicate progress effectively.

2. Limited Environmental Impact Disclosure:

The report provides limited disclosure of environmental impact data and lacks specific strategies
for reducing the company's environmental footprint.
Enhance transparency by providing comprehensive details on the environmental impact, along
with specific plans to mitigate the footprint.

3. Insufficient Stakeholder Engagement Information:

The report does not sufficiently detail stakeholder engagement efforts or the mechanisms in place
for gathering and incorporating community feedback.
Strengthen stakeholder engagement by implementing robust feedback mechanisms, ensuring
active community involvement, and transparently communicating the outcomes of engagements.

Recommendations:

1. Setting Measurable Targets for Empowering Communities:

Vedanta should set specific, measurable targets for community empowerment and the upliftment
of women and children, aligning these with industry best practices (Aim 2 and 3, Pg 49-51).

2. Enhancing Transparency in Supply Chain Management:

Provide more comprehensive details on negative social impacts within the supply chain and
outline specific actions taken to address these issues (Supply Chain Management, Pg 106-107).

3. Improving Reporting on Indigenous Peoples' Rights:

Strengthen reporting on incidents involving the rights of indigenous peoples, aligning disclosures
with global standards and industry best practices (Indigenous Peoples Rights, Pg 43).

4. Adopting Industry Best Practices:

Consider adopting industry best practices, such as the Vedanta Biodiversity Management
Standard based on the International Finance Corporation's Performance Standard 6.
Implement the Incident Cause Analysis Method (ICAM) investigation process to prevent future
incidents and ensure a safe workplace.

By addressing the identified limitations and implementing the recommended actions, Vedanta
Limited can significantly enhance the effectiveness of its sustainability efforts, improve
transparency, and align its practices with industry best standards, strengthening its commitment to
sustainable practices and responsible corporate citizenship.

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References
1. https://www.vedantalimited.com/uploads/investor-overview/annual-
report/Executive-Summary-SR-FY23.pdf
2. https://www.vedantalimited.com/img/homepage/Sustainability%20Report%2022.pd
f
3. https://www.vedantalimited.com/uploads/investor-overview/annual-report/Vedanta-
Limited-Integrated-Annual-Report-202022-23-VF.pdf

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