Sustainable Development Report Card – FY 2015

1 July 2015 Roma Balwani President, Group Sustainability, CSR & Communications

Sustainable Development Model: underpins Licence to Operate

Sustainable Development Model

Social Licence to Operate

2

Sustainable Development Framework: integral to our business

Sustainable Development Framework

3

Embedding a culture of sustainability

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Our Sustainable Development Framework helps our businesses put the Sustainable Development Model into practice

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The goal is for the Framework to be embedded in every decision we take  >12,000 management-level employees trained with e-learning modules  Board members engaged through inhouse experts, who sit on or are invited to the Executive and Sustainability Committees

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Our Code of Business Conduct and Ethics provides a set of principles to guide our employees

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Global partnerships, including with WBCSD, UNGC and GRI, will be important going forward

4

Monitoring our material issues Materiality Matrix 

Annual internal and external ‘materiality’ reviews enable us to identify and prioritise social and environmental issues

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Our performance and approach to these issues are detailed in our Sustainable Development Report

5

Key areas of focus in FY 2015

1. Employee health & safety

2. Community relations – social licence to operate

3. Adherence to global governance standards

4. Human rights

6

Key initiatives in FY 2015 – health & safety

Employee safety

Water, Health and Sanitation

8 fatalities in FY 2015, down from 19 in FY 2014

Vedanta signed the World Business Council’s WASH pledge

First in India to implement on this scale

45 of our 52 sites are OHSAS

Self assessment completed by all business units with 70% average score

Gives senior management greater visibility on Group sustainability performance

All units are implementing WASH action plans

Will bring transparency in reporting and facilitate reporting standards

18001 certified

Improvement in VSAP score - average score of 67 in FY 2015 vs. 63 in FY 2014

SAP Sustainability and CSR

7

Key initiatives in FY 2015 - environment

Managing our environmental footprint 88% of sites certified to ISO 14001 standards

Zero higher category environment incidents

Invested $61.5m to bring efficiency savings, build relationships with stakeholders, and maintain our ‘licence to operate’

Protecting biodiversity

Water and energy targets

Aim to achieve a minimum of No Net Loss of biodiversity and Net Positive Gain of biodiversity at all our operations

Achieved efficiency savings through combining new technology and advancing our business processes

Vedanta Ltd became a signatory of the Indian Biodiversity and Business Initiative

All Group companies are implementing Biodiversity Action Plans

Met energy targets over the year, consuming 1.15 million GJ Total water conservation of 7.38m cubic metres vs. target of 2.49m cubic metres Recycled c.40m cubic metres of water: 17% of overall water consumption

8

Key initiatives in FY 2015 – social

Community needs assessment

Human Rights and diversity

Community Impacts

Completed our largestever community needsbased assessment for Indian sites

Sustainability Committee completed assessment against the UN Guiding Principles for business and human rights

Around 4 million beneficiaries through our community initiatives

Over 4,600 village and community meetings

Training for all new hires in Code of Business Conduct and Human Rights

Compliance with India’s 2% CSR law

Partnered with local government and NGOs

CEO’s pledge on UN’s Women's Empowerment Principles

Focus on local consent prior to accessing resources

Community grievance management systems at all sites

Commitment to 25% female representation at Board level by FY 2016

250+ partnerships with NGOs, local governments, academia and private hospitals

9

Case Study – KCM Stakeholder Engagement in Africa

10

Nandghar – A PPP Approach to Women and Child Development (I) Aganwadi

Model Aganwadi

(Gayatri Mandir, Viramgam, Gujrat)

(Hasanpur, Sonepat, Haryana)

11

Nandghar – A PPP Approach to Women and Child Development (II)

12

FY 2015 focus - integrating Sustainability & CSR

FY15

FY15 Group wide SAP Environment, Health and Safety IT project rolled out

More rigorous process in respect of safety, energy, water, biodiversity and other environmental aspects

FY15 FY15 FY15 Third-party led materiality analysis

Building community awareness of existing sustainable development initiatives

Incorporated sustainable development KPIs into executive remuneration

Promoting a culture of ‘zero harm’ and positioning Vedanta as a caring organization globally

FY15 Sustainability model now includes “strategic communications” pillar, aligning licence to operate with business goals 13

Soft power at Vedanta

CSR Vision: 

Integrating CSR with business sustainability so as to ensure ‘Licence to Operate’ for all our businesses

Sustainability Vision: 

Creating a culture of a ‘zero harm’ organization

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Strategic communications

Vision: 

Social vision aligned to business vision

14

Thank you