Sustainability & CSR

Skill development initiative at Cairn Enterprise Centre by Cairn Oil & Gas


We continue to push forward on our sustainability agenda, knowing it is a key driver for our business performance.
– Phillip Turner, Group Head
– HSE & Sustainability 

Key statistics

  • 3.36 million community beneficiaries (2017: 2.2 million).
  • Carbon footprint: 52m mt
  • LTIFR: 0.35 (2017: 0.40)
  • Water recycling rate: 30% (2017: 27%)
  • 1.3 million m3 of water saved (target: 0.9 million m3)
  • 2.4 million GJ of energy conserved (target: 0.9 million GJ)
  • Community investment: ` 244 crore (2017: ` 144 crore)

Over the years, Vedanta has grown to become the sixth largest diversified natural resources company globally through a combination of organic growth – as can be seen at our copper business – and acquisition of complementary business including Hindustan Zinc, Cairn India, BALCO, Sesa Goa, Skorpion Zinc and Black Mountain Mines . These companies are mature, high-performing businesses in their own right with well-developed governance, HSE and community relations management systems.

As a Group we have sought to embed a standardised, high-performance sustainability culture across all our businesses while allowing each to make its day-to-day decisions without interference from any central body. It is in this context that we introduced the Vedanta Sustainability Framework (VSF) in 2011. The goal of the framework is to ensure that all our businesses integrate sustainability principles into their business practices in a consistent and systemic manner. The VSF has enabled them all to understand and integrate sustainability into their operational and decision-making structures.

We use our central oversight bodies, including the Board and Group executive committees, to set performance expectations (especially on sustainability) and to ensure that our governance standards remain compliant with Environmental Social Governance (ESG) considerations. The individual businesses set their own strategy, technology deliverables, production outcomes, sustainability measures and other goals.

Finally, preserving our licence to operate is one of our strategic priorities, ensuring sustainability issues are incorporated at Group level into management considerations and decision making.

During the year, we have continued to make progress against our priorities, achieving excellent results in some areas, while reviewing how we operate in others and taking steps to improve outcomes for our stakeholders.

Objectives and targets FY2018

The safety of our workforce

Achieve score >75% in six safety performance standards

Status

Performance FY2018

3 of 10 businesses achieved 75% or above

Objectives and targets FY2019

Achieve score >75% in six safety performance standards

Extend baseline health assessment across businesses

Hindustan Zinc, Sterlite Copper, Cairn Oil & Gas and BALCO have completed their initial exposure survey

 

Zero fatal incidents and 33% reduction in LTIFR

7 fatalities occurred in the fiscal year. LTIFR improved from 0.40 to 0.35 – a reduction of ~13%

Zero fatal accidents and LTIFR of 0.30

Environment management

  • Standardise water risk assessment approach for business
  • Undertake water risk assessment for significant businesses with water as a material issue
  • Water savings target: 0.93 million m3
  • Water risk assessment tool developed in collaboration with Antea Group, US.
  • Water risk assessment studies conducted for 25 significant business units across the Group
  • Water savings of 1.3 million m3 achieved

Achieve water saving of 1.5 million m3

Compliance with environmental and social management plan for new projects across the business

Work-in-progress

 

Complete Biodiversity Management Plan (BMP) at our Oil & Gas business

BMP study complete

 

Achieve 50% of fly ash utilisation rate

90% of the generated fly ash utilised

Achieve fly ash utilisation of 75%

We are considering formal GHG reduction targets and we expect to achieve a 16% reduction in carbon intensity by 2020 from a 2012 baseline, which was the first year of audited data

c. 14% reduction achieved in GHG intensity over baseline of 2012

Formalise our 2020 GHG reduction target

Energy saving: 0.87 million GJ

Energy saving of 2.44 million GJ achieved

Achieve 2 million GJ energy saving

Complete the dam break analysis of the identified facilities across businesses

In FY2017, two dams across our businesses had been identified for the analysis. Analysis completed at both

We have taken a serious note of the dam-failure incidents at VAL-Jharsuguda and BALCO and have taken appropriate actions to ensure this is not a recurring issue for our business (ref: page 63)

Develop capability and facilitate strengthening of tailing management practices across the Group

Initiate the capacity-building of selected professionals on biodiversity

Not initiated

 

Retaining our social licence to operate

Social impact studies to be continued for remaining sites

Partnered with TARU Leading Edge to conduct baseline, need, impact and SWOT assessments in all businesses. Work is under way

Complete the baseline and social impact assessments in all businesses

Increase the implementation and utilisation rate of the SAP system

The development of a unified reporting system to record the aggregated impact of CSR initiatives and to the manage entire CSR cycle is in process. Institute for Financial Management and Research (IFMR) has been commissioned to develop unified indicators and Goodera (under process) has been identified for providing the software platform

 

Expand the Company's flagship Nand Ghar CSR programme to all our businesses

Nand Ghars constructed: 54 in FY2017-18; 154 till date. 250 under construction

250 Nand Ghars to be constructed in FY2018-19 and planning for additional 1,000 to be completed

Embed and encourage employee volunteering for social initiatives

Employee engagement initiatives have been undertaken in businesses including HZL, Sterlite Copper and BALCO. These initiatives included Khushi Baatiye, audio description movie for visually impaired children, and mentoring programme by employee families, among other activities

Develop employee engagement standard policy for the Group

People and diversity

Employee scorecard coverage to be extended to 100% of the professional employees

Target completed

 

Ensure 100% coverage of Code of Conduct training for all new professional employees

Target completed

Continue to focus on Code of Conduct training for all professional employees, including new hires

Increase gender diversity by hiring 20% women this financial year

19% of all new full-time hires in FY2018 have been women

-

Achieve 33% female representation at Vedanta Board-level by 2020

We have 22% female representation on the Vedanta Limited Board. We continue to focus on our target of achieving 33% representation

Achieve 33% female representation at Vedanta Board-level by 2020

Focus on anchoring and engagement of high-potential employees through our flagship programme V-Connect

Focus on Right Management in Place in each SBU

Achieved

In progress/Partially achieved

Not achieved

LTIFR reduction to

0.35 from 0.4

 

Safety training amounting to

890,389 man-hours

Project Unnati, Cairn Oil & Gas

A unified approach to sustainability

Our Sustainability Framework is central to our sustainability agenda, focusing on our four strategic pillars:

  • Responsible stewardship –
    We are committed to safeguarding our resources by monitoring, managing and improving the Group’s health, safety and environmental performance. Our vision for ‘Zero Harm, Zero Waste, Zero Discharge’ is an outcome of this approach.

    Focus areas: Code of Conduct; ethics; health, safety & environment
  • Building strong relationships –
    We are committed to maintaining an open, ongoing and systematic dialogue with our stakeholders. Our goal is to ensure that we align our business planning, community relations and CSR programmes with stakeholders’ needs in order to maintain and strengthen our social licence to operate.

    Focus areas: Stakeholder engagement and management, human rights, neighbourhood dialogue
  • Adding and sharing value –
    We are committed to driving economic empowerment and generating shared value through significant and relevant investment in local communities and national economies.

    Focus areas: Employees, communities, business investments
  • Strategic communications –
    We are committed to transparent and timely disclosure that builds trust. We believe that clear and regular communication and dialogue with all our stakeholders helps create an environment that facilitates our operations.
  • Responsible stewardship –
    It is of critical importance to us that we take care of the health and safety of our workforce and minimise our environmental impacts to protect our natural resources and those who live around our operations.

a) The safety of our workforce
This year has seen significant leadership attention on health & safety and the message from our Board and senior leadership is very clear: we cannot continue to operate in a manner that puts the lives of individuals at risk. In order to drive the safety agenda further in our organisation, we have implemented a phased programme of new safety systems. This includes fresh approaches to identifying risk areas for accidents and fatalities, developing standards to establish minimum performance requirements, monitoring progress on their adoption and reviewing performance with senior leadership. This systemic approach has begun to yield results. Safety incidents have reduced over a six-year period, as seen in LTIFR, which has reduced from a high of 0.89 in FY2012 to 0.35 in FY2018.

However, of deep concern is that the number of fatalities increased in FY2018 to seven, despite a previous downward trend. Two-thirds of these fatalities occurred in areas that were outside of the focus of our ‘fatal risk campaign’.

We have introduced additional safety standards in the light of these tragic events, and we are also conducting training and programmes for our workforce so that they can identify, prevent and manage safety risks, even if a specific standard is not in place. ‘Making Better Risk Decisions’ (MBRD) training and the Critical Risk Identification training programmes have been developed to impart this kind of awareness and preparedness. Collectively, we have imparted over 890,389 hours of safety training to our employees, contractors and third-party vendors. We also regularly send out updates on learnings from the investigations into ‘high potential’ and ’fatal’ safety incidents.

(i) Good housekeeping leads to safe workplaces
In FY2018, we launched the international ‘5S Housekeeping Programme’, which provides a process to measure and monitor housekeeping effectiveness. Our goal was to achieve a score of 90% across all of our assets. The thinking was very clear: bad housekeeping is one of the primary reasons why accidents take place. If we can systematically improve it, we are likely to see a drop in safety incidents. So far, we have been able to drive up the score from an average of 65% to 74%. We hope to close FY2019 at 90%.

LTIFR

FATALITIES

(ii) Measure, monitor, report
This year, we supplemented our existing standards with additional rules covering machine guarding; cranes and lifting; molten metals and pit, dump and stockpile safety. All sites are required to adhere strictly to the provisions in these standards and their compliance will be audited in our annual Vedanta Sustainability Assurance Protocol (VSAP).

To ensure that every site adheres to all safety principles, we have appointed ‘zone-wise’ managers who are accountable for the overall safety of their areas. We have mandated that the managers should be chosen from inside the business, people who staff the shop-floor on a daily basis. Combined with an active and engaged leadership, a vigilant ExCo and the strict application of standard safety procedures, we are confident that we will be able to turn around our safety performance.


Our businesses have made significant progress on our GHG reduction commitment to date. Companies such as Hindustan Zinc and Cairn Oil & Gas have committed to increase their investment in solar power. 

Employee at operational site, Cairn Oil & Gas

To further drive up safety performance, we began redesigning the HSE function to ensure that each business has adequate leadership to influence and drive a safety culture. The newly appointed Chief Health & Safety Officers and Chief Environment Managers have been mandated to increase their engagement with business and site-based line leaders to implement effective safety controls. We have also appointed experienced employees at regional levels to drive safety performance and ensure that knowledge sharing and lessons-learnt are adequately implemented at our sites.

We also recruited ten globallyexperienced HSE experts (with three more planned) to fill roles at a unit and regional level. These experts will be tasked with bringing international best practices in safety to our business units and to build organisational capabilities through coaching our business leaders and specialists.

Finally, FY2018 saw the introduction of ‘HSE competency’ as a performance metric for each employee to help us track safe behaviour and awareness of safe work practices. We envisage that this indicator will sit alongside other indicators of individual performance and promote those employees who value safety in all their actions.

(iii) Statistics for health & safety

  • 890,389 man-hours of HSE training
  • 100% periodical medical examination
  • 63 Lost Time Injuries (LTIs) and seven fatalities in FY2018
  • Sterlite Copper received the British Safety Council’s ‘Sword of Honour’ and Cairn Oil & Gas received the British Safety Council five-star rating

b) Managing our environmental performance
Vedanta is committed to minimising its environmental footprint. To do this, we have instituted measures across the organisation that help us minimise our air emissions, reduce our waste and effluent volumes, and improve the energy and water utilisation efficiency of our operations. We have also taken measures to protect the biodiversity of the regions where we operate.

Our VSF comprises comprehensive policies and standards on water, energy and carbon, waste and biodiversity. The framework, combined with objectives and targets on energy, GHG, waste and water management ensures that each of our businesses follows the same high standards of environmental management.

(i) Water management
Effective management of water is critical – both for our operations and for the communities who live in close proximity to us – and the availability of water ☺is a key business risk for our operations. By understanding how we source and use this resource, businesses can de-risk their operations from unplanned stoppages due to the non-availability of water.

This year, we undertook a water risk assessment exercise at 25 of our most significant business locations. This determined water risk is based on waterstress information available in global, public databases and in site-specific measurements. The approach evaluated physical, social/regulatory, economic and business risks related to water. In addition to understanding the water risk at each of these locations, our goal is to standardise our water risk assessment approach for Group companies.

Findings from the study informed us that some of our operations in the high water-stress regions of India (Rajasthan, Punjab and Tamil Nadu) had a greater risk of shortages over a period of time than our businesses in other locations. This is because of competitive pressures for water usage in those regions. Based on the findings of the study, each of our businesses has been mandated to put in place appropriate mitigation measures to counter these risks.

To further support our water management, we have rolled out a water management performance standard, along with a guidance note for the uniform implementation of the performance standard.

Our overall water consumption has shown a marginal increase of 0.04%, indicating the improved water efficiency across our businesses.

We have initiated several water conservation projects related to operational efficiency and water recovery that have helped achieved a saving of 1.3 million m3 of water compared to our target of 0.93 million m3.

Trainees at Cairn Enterprise Centre, Barmer

Water recycled

30%

Fly ash utilisation rate

90%

(ii)Energy and carbon management
Our energy & carbon management adopts a two-pronged approach: improving energy and process efficiency and diversifying our energy portfolio to include renewable energy. We are committed to invest in newer technologies and processes to enhance our energy efficiency.

Last year, we defined our energy and carbon management performance standard and we are in the process of releasing accompanying guidance to adopt a uniform management approach across the business.

Our total energy consumption increased by 3.2% over the previous year, driven by increased production volumes across our businesses.

This year, we achieved our annual energy saving target and more: through operational efficiency and energy-saving projects, we saved about 2.44 million GJ of energy, against the target of 0.87 million GJ.

  • Climate-related business risk
    Climate change continues to pose an ever-present risk to the planet. India, which has set ambitious targets of reducing its carbon intensity by 33-35% by 2030 and sourcing 40% of its electric power from non-fossil sources, continues to push ahead to meet those targets.

    Vedanta also continues to remain committed to decrease its climate change impact. Last year, we stated our expectation to reduce our GHG intensity by about 16% from a 2012 baseline by 2020.

    Our businesses have made significant progress on our GHG reduction commitment to date. Companies such as Hindustan Zinc and Cairn Oil & Gas have committed to increase their investment in solar power, while other businesses have made significant improvements in their process efficiencies, thereby reducing their GHG emissions. As at March 31, 2018, we have been able to achieve a 14% reduction in our GHG intensity from our baseline number. This is good news and we are confident of achieving our target by 2020. A ~2% decline in our absolute GHG emissions from last year is also testament to this commitment.

    We are also committed to developing an internal carbon price mechanism to manage our climate-related financial risk.

(iii)Tailings dam management
Tailings dams are considered a significant HSE risk and have been part of the Group Risk Register since FY2016. A breach in the dam would result in the spillage of accumulated wastes that can pollute the soil and damage property due to a ‘flood’ event. It is therefore imperative that their integrity is maintained.

Last year, we conducted tailings dam risk assessment studies at nine dams across our businesses, which had been internally classified as high-risk. In two out of these nine dams, an additional dam-break analysis was conducted to quantify the impact of dam failure. However, as the findings from the analysis were being studied, one of the dams – located at our Aluminium & Power business in Jharsuguda – experienced a breach in the wall of the ash dyke. This resulted in a spillage of the contained fly ash onto an adjacent plot of land, which is majority-owned by Vedanta. In anticipation of a lack of storage space for newly produced Trainees at Cairn Enterprise Centre, Barmer fly ash, the regulator (Odisha State Pollution Control Board) imposed partial restrictions on the operation of our power plants. This restriction was progressively lifted as storage space became available. Remedial measures have been taken at these dams.

We also experienced a minor overflow of the ash dyke at BALCO. However, the incident did not result in significant environmental, health and safety or social impacts.

These incidents have raised the issue of potential failures in the future and a comprehensive plan to eliminate this risk has been undertaken. A crucial first step is the review of our dams and we have extended the earlier review of nine dams to cover every dam globally to ensure that they are all designed, constructed and managed consistently, in line with global practices. We have engaged an experienced third-party to conduct this evaluation. For those already reviewed, the consultant has taken the review to the next level of detail in terms of management approaches and implementation. The results and progress of interventions are overseen by both our Executive and Risk Management Committees. We have also rolled out the ‘Vedanta Tailing Management Standard’ to ensure that we have consistent dam management practices across all Group companies.

The assessment was completed in March 2018 and the findings have been shared with our Group Executive Committee and Risk Committee. The businesses are in the process of addressing issues reported from the assessment. We are also appointing a global expert for regular inspections of all our tailings dams and ash dykes. This expert will also provide advice on improving the tailing management system, which will cover the design, construction and operation of these storage dams.

We fully anticipate better management of these structures in the future.

Employees at Export Tank, Mangala Processing Terminal, Barmer


We have recycled 81% of our overall High Volume and Low Effect waste in sustainable applications and are continuing to develop innovative ways to increase the proportion of waste we recycle. 

(iv)Air quality
We are committed to identifying and managing our emissions to the air. As part of our ambient air quality monitoring process, we monitor Particulate Matter (PM) and SOx. We also monitor lead and fluoride emissions from our operations, as applicable.

(v)Waste
According to our Resource Use and Waste Management technical standard, we follow the principle of first reducing the waste, in quantity as well as quality (reducing the toxicity), and then recovering and recycling where possible (either in-house or through authorised recyclers). The last stage is disposal in landfill or by incineration, using authorised, licenced and secured landfills. We aim to remain environmentally friendly across all the stages.

Major wastes generated from our operations are non-hazardous, high-volume and low-effect waste.

Hazardous waste includes used/spent oil, waste refractories, aluminium dross, spent pot lining and residual sludge from smelters, while the high-volume and low-effect waste include fly ash, red mud and phospho gypsum.

We have recycled 81% of our overall high-volume and low-effect waste in sustainable applications and are continuing to develop innovative ways to increase the proportion of waste we recycle.

(vi)Environmental statistics

  • We recycled 81% of high-volume and low-effect waste in sustainable applications.
  • GHG intensity reduction from a 2012 baseline is on-track (14% achieved against expectation of 16% reduction by 2020).
  • We saved 1.3 million m3 of water against the targeted savings of 0.93 million m3.
  • We conserved 2.44 million GJ of energy against the targeted savings of 0.87 million GJ.
  • Two incidents related to the partial collapse of our tailings dam and ash-dyke walls at VAL-Jharsuguda and BALCO.

2.Building strong relationships
Please refer to Stakeholder Engagement for more details on page 38.

a) Human rights
For Vedanta, upholding human rights is a fundamental responsibility and of particular importance since the majority of our operations are in developing countries. It is a material consideration across all our business decisions.

Our Human Rights Policy is aligned to the UN Guiding Principles on business and human rights and includes strict prohibition of child or forced labour – either directly or through contract labour.

Additionally, our Code of Business Conduct and Ethics underpins our approach to protect the fundamental rights of all our direct and indirect employees, communities and immediate supply chain.

We uphold our workers’ right to freedom of association at all our operations. The collective bargaining agreements are based on transparent and fair discussions between the management and union representatives. Our Suppliers’ Code of Conduct is implemented as part of the terms and conditions of supplier contracts across the Group and all new suppliers are required to sign, endorse and practice this Code. We also have a Supplier & Contractor Sustainability Management Policy. Both the Code and the Policy clearly communicate our expectations of our suppliers: to operate in compliance with all relevant legislation and follow our policies while executing work for us, or on our behalf.

(i)A note on our operations in Tuticorin
This year, our social licence to operate was challenged by communities living around our Sterlite Copper plant in Tuticorin. The protests, while widespread, are based on misinformation around the perceived pollution caused by the plant. The fears stem from historic incidents, for which the Company received legal sanctions in 2013. However, it has since taken corrective measures to ensure that incidents of pollution are not repeated and the plant now operates well within regulatory limits for air emissions. It is also a zero liquid discharge operation, which means that there is no possibility of effluents polluting local water sources.

We are working with the communities as well as the regulatory bodies to arrive at a solution to the questions raised. We are mindful that pollution will remain a key issue in the region, which is an industry cluster with more than 60 manufacturing units (including thermal power plants, dyeing units and other large-, medium- and small-scale industries), and we would like to play a key role in reaching long-term solutions that incorporate the views of all stakeholders. We are committed to running our operations responsibly and our door remains open for dialogue.

(ii)Modern Slavery Act, 2015
In accordance with the UK’s Modern Slavery Act, (MSA) 2015, we have updated our Supplier Code of Conduct and Contract Conditions and our Code of Business Conduct and Ethics to ensure the prevention of modern slavery and human trafficking in our operations and supply chain.

We have also introduced the MSA framework at all our business units. Under this framework, we have a system in place for training of vendors/ suppliers, due-diligence and selfdeclaration. We perform audits periodically to make sure that all business units follow this framework rigorously.

Implementation of the compliance framework for MSA rests with our Group Commercial team. They have been tasked with ensuring that all our vendors meet the stringent requirements of the Act.

3.Adding and sharing value
Our operations are predominantly located in the developing economies of India and Africa. We believe that we have an important role to play in developing the societies and communities where we operate, enabling them to share in the value we create.

a) Our approach
We are committed to giving back to the stakeholders who play a vital role in powering our growth. Reducing the social and economic divide by generating economic value, distributing wealth, investing in employees and enhancing standards of living are all key elements of our sustainability framework. We not only drive economic growth through taxes, royalties, wages and supplier contracts, but our operations also help to provide the products these communities need to further their development, for example, through infrastructure and housing.

b) Communities
Proactive engagement with communities helps to resolve concerns they may have about our operations. It also allows us to understand their expectations from the Company, thereby helping us develop a comprehensive engagement strategy. This strategy includes creating opportunities for employment, using the services of local vendors, and implementing focused CSR and community development activities. Collectively, these actions allow us to create a positive social impact.

The majority of our initiatives are identified, developed and carried out in collaboration with local government bodies and community organisations. This ‘4Ps’ (public-private-peoplepartnership) model has inspired us to participate in ambitious long-term projects such as the Nand Ghar initiative.

In FY2018, Vedanta spent ` 244 crore on social investments and CSR activities. This is an increase of 69% over the previous year, when we spent ` 144 crore on social investment. This money is spent across 1,400-plus villages, benefiting nearly 3.36 million people.

c) Project updates
Proactive engagement with communities helps to resolve concerns they may have about our operations. It also allows us to understand their expectations from the Company, thereby helping us develop a comprehensive engagement strategy. This strategy includes creating opportunities for employment, using the services of local vendors, and implementing focused CSR and community development activities. Collectively, these actions allow us to create a positive social impact.

(i)Project Nand Ghar
The Nand Ghar Project is our commitment to transform the lives of 85 million children and 20 million women across 1.37 million Anganwadis in India, by building a world-class model of pre-school education, healthcare, nutrition and women’s empowerment. The Nand Ghars provide a best-in-class curriculum through e-learning, healthcare with a doctor at the doorstep, hygienic pre-packed meals for nutrition and customised skills training for empowering women economically across India. Today, there are 154 Nand Ghars across Rajasthan, Uttar Pradesh, Madhya Pradesh, Goa and Uttarakhand and our commitment is to construct 4,000 centres across 11 states in India.

Their impact is paving the way for the Anganwadis model across the country.

(ii)Children’s well-being and education
Our focus is on building the capacity of the next generation to create a longterm sustainable impact. Educational programmes include a wide range of activities covering pre-school through to higher education. The total reach of all our education projects extends to some 21 million children. ‘Khushi’ is one of the largest collaborative projects with the Government, which aims to strengthen the functioning of 3,089 Anganwadis across five districts of Rajasthan. This programme alone impacts nearly 64,000 children. Other programmes in the education space are focusing on creating better teaching and learning environment.

(iii)Healthcare
Good health is the cornerstone of community well-being. While we have always invested in healthcare (through mobile health vans, camps and so forth), we are now focusing on creating world-class healthcare facilities, especially in areas where these do not exist. This year saw the opening of the BALCO Medical Centre, a 350-bed cancer hospital in Naya Raipur. The hospital brings modern, comprehensive and high-quality medical care within the reach of the population of Chhattisgarh in particular and Central India in general. Another step in the same direction is the signing of an MoU between the Government of Odisha and Vedanta Limited, to establish a 500-bed hospital and medical college at Bhawanipatna, in Kalahandi District. Vedanta will spend about ` 100 crore on the construction of the hospital, which will be run by the State Government. In FY2018, nearly 2.46 million people benefited through various health initiatives of the Company.

Benefiting 3.36 mnpeople across

1,400+ villages

(iv) Women’s empowerment
At Vedanta, we believe that women’s empowerment is a fundamental building block of a strong and fair society. The Subhalaxmi Cooperative Society was started in 2008 with this objective. What began with ten women is today among the largest women’s cooperative in western Odisha with 3,324 members and 280 Self-Help Groups (SHGs), across 64 villages of 3 blocks of Jharsuguda. It started with ` 1,000 as working capital and today, it has an earmarked corpus fund of more than ` 2.23 crore with an average net profit of ` 6-7 lakh/per annum. Around ` 49.2 million has been distributed to female entrepreneurs to set up micro enterprises in FY2018. It has now established a special ‘Udyami Fund’ to support emerging and aspiring microenterprises in Jharsuguda. At Vedanta, we work with almost 28,000 women who are members of such SHGs and during the year nearly, 1,900 women set up or expanded their own enterprises.

(v) Drinking water and sanitation
We focus on drinking water and sanitation, since both are basic requirements for healthy lives and societies. The Jeevan Amrit Project is one of the largest drinking water programmes undertaken by any company in Rajasthan. Cairn’s MoU with the Government of Rajasthan is about setting up 330 Reverse Osmosis (RO) water plants for communities in the water-stressed district of Barmer in Rajasthan. Already, 115 plants have been installed; during the year, they dispensed over 4 million litres of clean water, benefiting nearly 100,000 people.

(vi)Agriculture and animal husbandry
Because we operate in remote rural locations, agriculture is the backbone of the economy in our surrounding villages. Project Unnati was set up by Cairn to support the farmers of Barmer in enhancing incomes through sustainable farming. As part of an MoU with the Central Arid Zone Research Institute (CAZRI), Jodhpur, 700 farmers were trained in improved farming techniques. This was supported by the installation of irrigation drips for 60,000 horticulture plants across 120 acres. As a result, this year, the farmers in Barmer have harvested over 60 tonnes of Ber, Gunda and Anar.

(vii) Skilling young people
Our skills programmes are focused on helping young people to learn a trade and gain hands-on experience that equips them to secure a job. In FY2018, we helped 3,500+ youths to acquire diverse skills and find employment.

(viii)   Sports
Sport is one of the most powerful means of connecting with young people. Our Sesa Football Academy (SFA) (an IOB CSR initiative) was established in 1999 on a reclaimed mine at Sanquelim, with a vision to become a premier academy in India. Over the years, it has directly trained around 175 aspiring footballers at residential academies and reached over 500 youth players. Many of them are today realising their dream of pursuing a footballing career with major clubs. Seven alumni of SFA have played for the Indian national team and eight are playing in the elite Indian Super League 2017-18 season. We have now expanded the football programme to Rajasthan, with Hindustan Zinc setting up a world-class technology based football academy. This will use science and technology as a differentiator in its approach and is also setting up a network of community feeder academies. 56 such community academies are currently active, training-up nearly 2,000 talented under-14s.

(ix) Statistics for Community

  • ` 244 crore has been invested in social investment programmes.
  • 1,400+ villages are benefiting from our CSR programmes.
  • There are 3.36 million beneficiaries of our community development programmes.

People and Culture
Vedanta has always aspired to build a culture that demonstrates world-class standards in safety, environment and sustainability. People are our most valuable asset and we are committed to providing all our employees with a safe and healthy work environment.

Our culture exemplifies our core values and nurtures innovation, creativity and diversity. We align our business goals with individual goals and enable our employees to grow both personally and professionally.

Diversity
Diversity remains a strong focus. We are committed to providing equal opportunities to our employees regardless of their race, nationality, religion, gender or age. We are pleased with our progress to date on gender diversity and women now represent 10.6% of our total workforce and 22% of our Board. We have set ourselves a target to reach over 33% women at senior levels by 2020 and aim to achieve 20% female diversity amongst our employees.

Since most of our operations are in remote areas, we place a strong emphasis on recruiting employees from among the local population. A significant percentage of the Senior Management and our employees are recruited from the country in which our operations are located.

Recruitment
We have put a range of initiatives in place to support us in hiring skilled professionals.

Global Internship Programme (GIP)
We initiated the programme in FY2017 with the objective of attracting best talent from the world’s leading universities. We select candidates from first-year MBA students from premier B-schools, including Harvard, INSEAD, London Business School and Indian Institute of Management (Ahmedabad and Bangalore) with the goal of creating lasting business value by onboarding world-class talent. Internships provide these candidates with an opportunity to work with top management, especially the C-suite, on live projects that directly impact the business. They work in a dynamic, fast-paced team environment and conclude their internship having gained broad experience in several facets of the natural resources industry.

Vedanta Leadership Development
Programme (VLDP) In FY2017, we also launched the Vedanta Leadership Development Programme (VLPD) for full-time hires. The programme aims to build organisational capability for the future by onboarding best-in-class young talent from top management and technology institutes as full-time employees. We nurture them to be our leaders of tomorrow by providing them with a tailored programme including induction, job rotation and a range of roles, opportunities, job rotations and anchoring.

During the first year, 19 students joined the programme and in the second year, 28 students have been recruited.

Right Management in Place (RMIP) - Strategic hiring
We introduced a recruitment drive to fill several leadership positions, including expat/specialist positions to realign the organisation structure and strengthen our management teams across the business. Hiring for these positions focused on recruitment from best-practice companies.

Talent Management and Development
We focus on retaining and developing talent from within the Company to take on future leadership roles.

Internal growth workshops
We have always aimed to be an organisation headed by ‘leaders from within.’ Recognising internal talent and promoting them to leadership roles has been a driving factor in our rapid growth. Aligned with this philosophy, the Group conducts ‘Chairman’s Internal Growth Workshops’ to identify potential candidates across the Group. These workshops have resulted in the identification of 500+ cross-functional, high-potential new leaders in the Group’s businesses to date, who have taken up significantly enhanced roles and responsibilities. Our Internal Growth Workshops have also enabled us to reduce our lateral hiring significantly for critical roles across the Group in the past two years.

‘V Connect’ initiative
This initiative was launched across the Group in association with AON as an anchoring/mentoring and training programme covering all 12,000 professionals. The key output has been to derive enhanced engagement levels from employees. To facilitate the programme, a dedicated app – Aon Lead – was introduced. The app allows participants to schedule their ‘connects’ with their mentor, get the latest business updates from around the globe, access articles and videos that focus on effective leadership and skill-building and participate in quizzes and learning challenges. To date, more than 5,000 conversations have been completed using the app.

Performance Management and Total Rewards
We ensure that we monitor and reward performance.

V-Perform: One performance system for one Vedanta
V-Perform is a pan-Vedanta initiative to standardise our Performance Management System (PMS) and processes by leveraging technology. This assists the functions, teams and individuals in tracking performance, generating analytics and taking steps to ensure they are achieving Vedanta’s overall business plan and targets. To enhance our safety performance in the workplace and achieve our ultimate vision of zero harm, a safety competency assessment process has also been initiated as part of V-Perform to strengthen our existing safety management system.

Employee Stock Option Scheme (ESOS) 2017
To reward our employees and enable them to share in the financial success of the Company, we have launched an ESOS, following statutory and shareholder approval.

ESOS 2017 covers the Company’s 2,832 employees and aims at rewarding them with wealth creation opportunities, encouraging high-growth performance and reinforcing employee pride. The scheme was launched after obtaining statutory approvals, including shareholders’ approval in 2016.

One Vedanta network
As an international company employing thousands of people working across a range of remote and diverse geographic locations, we recognise the importance of fostering a culture of transparency, collaboration and knowledge-sharing across the organisation to keep employees informed and engaged. As social networking platforms continue to grow in popularity, we have developed One Vedanta – a platform on Workplace by Facebook – which enables all Vedanta employees to share content with their peers using a range of interactive tools such as live videos, news feeds, posts and media upload options.

The platform was launched in early 2017 and currently, more than 13,000 employees are signed up to this employee engagement tool with 4,000 active conversations per week. On November 29, 2017, a new ‘Chairman Connect’ bot application was launched on One Vedanta by our Chairman, Anil Agarwal. This application aims to give every employee direct access to the Chairman and leadership team to share ideas and feedback and to post questions. Mr. Agarwal’s vision is to tap into the rich pool of ideas and experiences shared by employees and to make Vedanta an open and connected organisation.