ISSUE 40 | VOL 12 | 1 JANUARY 2021

A SPECIAL EDITION

“I wish all of you a very happy new year. I know 2020 was a difficult year for all of us. But at Vedanta, we stood shoulder to shoulder to make sure we remain safe and help the society in whatever way possible. I am thankful to you all for standing with the people and the country at large. The next phase of Vedanta will be guided by technology, innovation and a new way of doing things, whether it is digitalization of our processes and approach, focus on quality and safety of our people. We will be hiring best-in-class people in the new year through campus recruitments with a thrust on diversity. At Vedanta, we are fully committed to do things in an ethical way.”

DIGITALIZATION & BUSINESS TRANSFORMATION

Digitalization has been a key focus area at Vedanta. The Digitalization vision aims to transform Vedanta into a data-driven organization enabling improved recovery, production optimization, enhanced safety and maximized productivity. The focus is to improve business KPIs through the digitalization initiatives.

VEDANTA SPARK – THE STARTUP ACCELAR-ATOR PROGRAMThrough ‘Vedanta Spark’, the company is actively seeking out for cutting edge technical solutions to complement internal innovation efforts in key focus areas. The objective of this initiative is to partner with innovators, disruptors, and start-up firms who can bring in cutting edge technologies and solutions and best practices.

INNOVATION PORTAL – VEDANTA 360Vedanta has set up an innovation portal with the following objectives:

Interact and collaborate on innovation Social Networking on innovation across Vedanta Share and celebrate the innovation success stories Innovation ideas sharing on common platform Open business challenges/problems on common platform and seek solutions from wider group. Horizontal deployment of best practices from each other. Create Shop floor innovation culture Post Ideas/Stories anytime and anywhere

PROJECT NIRMAAN: CAIRN LEADS THE WAYOil companies are in a rush to digitize and Vedanta’s Cairn Oil & Gas has been leading the change. Under its flagship initiative, Project Nirmaan, Cairn works on digitalization initiatives on the following identified and strategic imperatives:

Asset Integrity & Reliability Decline Management Growth, Exploration & New Development Business Process Improvement Health, Safety, Environment and Quality Management

PROJECT DISHAAn effort to build a design-thinking led and user-centric group level dashboard/ analytics platform (accessible on different devices) to gain visibility to data, information and insights across the group. The purpose is to develop a user-centric productivity tool to accelerate decision making & make Vedanta a data-driven organization from grass roots to leaf. In addition, this dashboard acts as a single source of truth for the management and sets a base for powerful data analytics going forward, Eg. Forecasting, what-if analysis, optimization analysis and various other analytics.

THE VIRTUAL COVID MARSHALVedanta Aluminium and Power has put in place the Virtual Covid Marshal – a master dashboard for all SOP compliances including mask detection, social distancing violations or lack of cleaning and disinfection. Any violation is captured on a real time basis for which notifications are sent out. Compliance summary is generated at the click of a single button. The AI based tool tracks compliance across locations.

DIGITAL TRANSFORMATION IN CORPORATE SOCIAL RESPONSIBILITY (CSR)Sterlite Copper has implemented a digital initiative to regularise clean water supply to the communities around plant premises. The innovation designed with no manual intervention, makes use of QR code scanning technology to manage the process by tracking and monitoring the water supply to community beneficiaries. Through the process Sterlite Copper currently reaches 16 villages and with a plan to cover 6 more villages in near future.

2020 has been a year that tested the true mettle of companies, globally. A year that separated winners from the laggards.

As the new year beckons, Vedanta is firmly positioned as a global oil and gas, mining and metals company with a strong thrust on sustainability, technology and innovation. Vedanta is committed to building India’s self-reliance in natural resources and is creating an impact not just for ourselves but also for the communities, regions and countries where we operate in.

Vedanta has been among the pioneers in India to create an integrated Commercial & Marketing Organization which will foster stronger relationships with customers and suppliers and ensure the highest standards of governance. The integrated strategy is the new playbook for profitable growth.

In line with the philosophy of 'Zero Harm, Zero Waste and Zero Discharge’, Vedanta is working towards a net zero emission goal and is committed to de-carbonize our operations over the next decade. The company has signed a declaration on climate change by pledging to move towards carbon neutrality at the Second India CEO Forum on Climate Change

There have been significant improvements in environmental, social and governance (ESG) performance, and Hindustan Zinc and Vedanta have topped the Dow Jones Sustainability Indices (DJSI) ranking in the Asia Pacific region this year.

Vedanta is committed to operate under the highest standards of corporate governance and deliver value to all stakeholders, even as its flagship social impact project, Nand Ghar, remains committed to transforming the lives of 8 crore women and 2 crore children at the grassroots level.

Meanwhile, the Anil Agarwal Foundation has joined hands with Bill & Melinda Gates Foundation to support the Government of India’s Ministry of Women and Child Development to end all forms of hunger and malnutrition by 2030. As a first step, the partners will build 500 Nand Ghars in Uttar Pradesh over the next 12 months.

As an eventful year goes by, we take a look at Vedanta’s key businesses, along with our technology, sustainability and social impact initiatives, through the prism of our Group newsletters published during the course of the year.

CAIRN OIL & GAS – A SUCCESS STORY IN EXPLORATIONCairn Oil and Gas, a vertical of Vedanta Limited, epitomises India’s success in the world of oil and gas exploration. Cairn, which accounts for more than one-fourth of the domestic hydrocarbon output, has been at the forefront of the country’s quest for energy autonomy by reducing the dependence on imports.

As a responsible oil and gas company, Cairn is guided by the mission of achieving environmental sustainability and promoting safe and ethical work practices. Cairn’s story is powered by a passion for achieving technological excellence while addressing social and community concerns.

ALUMINIUM AND POWER - LEADING THE WAYVedanta Limited, India’s largest aluminium producer, has invested over Rs 52,000 crore to set up an integrated aluminium complex with a capacity of 2.3 million tonnes. It has two aluminium smelters at Jharsuguda in Odisha, and at BALCO in Korba, Chhattisgarh, a two million tonne alumina refinery at Lanjigarh in Odisha, and power capacity of 5,800 MW. The smelter at Jharsuguda is one of the world’s largest single-local smelters outside China. Vedanta enjoys a 40 per cent market share in India’s primary aluminium sector.

The aluminium industry is of strategic importance to the country due to the crucial role it plays in the country’s security, defence, aerospace, automobile, infrastructure, electricity transmission and distribution. It as a building block for the economy and has a huge potential to contribute as a wealth creator for the nation’s growth. The sector has generated over 8 lakh jobs directly and indirectly, developed over 4000 SMEs in the downstream sector, and has a strong output and employment multiplier effect on other key sectors.

HZL: THE SUCCESS STORY OF PRIVATISATIONHindustan Zinc amply demonstrates what privatisation can achieve, that too in a short span of time. HZL was privatised in April 2002 with Sterlite Industries (now Vedanta) acquiring a 26 per cent stake in the company, as part of the then Prime Minister Atal Bihari Vajpayee’s bold reform push. And the success of the move can be best illustrated by the numbers.

HZL saw its profits rise from Rs 69 crore in 2002 to Rs 6,805 crore in FY2020. Revenues have increased from Rs 1,470.5 crore to Rs 20,495 crore during this period. The number of employees has more than doubled from 8,337 to 19,152.

HZL is among the world’s largest and India’s only integrated zinc-lead-silver producer. It is one of the lowest-cost producers of zinc globally and accounts for all of the country’s production and governs about 79% of domestic zinc market. HZL produces about 95% of India’s primary silver and is the sixth largest producer of silver globally. HZL is ranked #1 in Asia Pacific in Metal & Mining in the Dow Jones Sustainability Index 2020 and is a certified Water Positive Company.

ESL: A TURNAROUND STORYVedanta has, over the years, proved to be a turnaround specialist. And just like the success stories of HZL, Balco and Cairn, Vedanta revived the fortunes of ESL with production catapulting to 1.5 million tonne on a consistent and sustainable basis from just around 1 million tonne earlier.

ESL Steels (ESL) is touted as one of the big success stories under the Insolvency & Bankruptcy Code. ESL was the first of the twelve defaulters on RBI’s list of stressed accounts to be resolved under the bankruptcy code. But more importantly, ESL, which was acquired by Vedanta, scripted a big turnaround, that too in a very short span of time.

COPPER: KEY TO SUSTAINABLE DEVELOPMENTSterlite Copper started as a Zero Discharge Copper facility at a time when the concept was still at its infancy. The Thoothukudi unit was among the forerunners globally to set up a zero-discharge facility way back in 1997.

Sterlite Copper has been a trend-setter for the industry in many ways. It was the first company in India to go ahead with a secured landfill facility. Sterlite’s secured landfill facility came up in 1999 using German design, and with the National Productivity Council (NPC) as the technical partner.

So deep-seated has been the thrust on environment safety that emission level at the Sterlite Copper’s sulphuric acid unit was at par with Norddeutsche Affinerie AG, which runs a similar facility in the heart of Hamburg, Germany. In fact, a study done by Brook Hunt has ranked Sterlite Copper as the second most environment friendly smelters globally.

SESA GOA – A RICH LEGACYVedanta’s Sesa Goa Iron Ore Business has a rich legacy in exploration, mining and processing of iron ore. The unit, founded way back in 1954 as Scambi Economici SA Goa, has been one among the lowest cost producers of iron ore in the country. Sesa Goa diversified into the manufacture of pig iron and metallurgical coke in the 1990s and developed environment-friendly technology for producing high-quality metallurgical coke. Sesa Goa Iron Ore has a 60 MW power plant that produces clean power by using

the waste heat recovery from its coke ovens and blast furnace gas.Vedanta Sesa Goa is India’s largest producer and exporter of iron ore in the private sector with operations in Goa and Karnataka. The division uses advanced and comprehensive environment protection measures – a hallmark of Vedanta - and is committed to ensuring sustainable mining across its operations. Sesa Goa is among the very few iron ore mining businesses globally to have received top honours for its thrust on green mining

VZI, A CATALYST FOR GROWTH It is turning out to be the catalyst for growth in South Africa. Vedanta Zinc International (VZI) - one of the largest private sector employers in the Northern Cape – is playing a crucial role in the economic development of South Africa. And with big expansion plans on the horizon, VZI’s overall impact on the local economy is set to become much bigger.

VZI’s Black Mountain Mining (BMM) is a major job creator in the region and employs approximately 90 per cent of local South Africans. BMM’s underground operation currently provides employment to more than 1,600 people, while the Gamsberg project has around 1,200 people on its rolls. Around 1,900 people are employed at Skorpion Zinc.

VZI’s vision is to create an integrated world-class regional zinc complex comprising the BMM (including Gamsberg) and the Skorpion Zinc mining and refining operations.

INTEGRATED ORGANISATION – THE NEW MANTRAOver the past few years, Vedanta has emerged as a global leader in the diversified natural resources space with its business units spread across different geographies producing a wide range of commodities including oil and gas, aluminium, zinc, silver, lead, copper, iron ore and steel. As part of its transformational journey to keep the momentum going, Vedanta has been among the pioneers in India to create an integrated Commercial & Marketing Organization.

COMMERCIAL & MARKETING ORGANIZATION: THE STRATEGIC GOALThe focused objective of the integration of marketing and commercial is to build category expertise, foster benchmarking and data-driven decision making backed by technology and digitalization. Vedanta is engaged in buying and selling within the Indian subcontinent to foster national growth, and the integration of the marketing and commercial functions is aimed at creating stronger relationships with customers and suppliers ensuring the highest standards of governance. The integrated strategy is the new playbook for profitable growth.

UNITED AGAINST COVID-19

Meals for All’ Program More than 11.46 lakh meals distributed to daily wage earners across the country in phase 1 and 2. More than 49,626 dry ration packets to the local communities. More than 12.70 lakh feedings to stray animals in Delhi, Mumbai, Jaipur and Pune.

Preventive Healthcare Distributed more than 4.54 lakh masks across communities. Provided more than 26,000 surgical masks and more than 75,000 surgical gloves to district hospitals across the country. Vedanta has joined hands with the Ministry of Textiles to import 23 machines for indigenously personal protective equipment (PPEs). Also, Vedanta distributed more than 1,03,777 units of soaps and sanitizers across communities.

Employee Safety & Welfare Vedanta, in collaboration with Apollo Hospitals, has established a 24x7 general helpline for the employees to ensure timely healthcare advice during the pandemic. The services are open for all employees and their families. To avail the free-of-cost healthcare support facility, call 18605003475.

Vedanta has been at the forefront of sustainable practices. Even as the company has, over the years, grown to become one of the largest diversified natural resources companies in the world, the goal has been to ensure that each of the businesses integrates sustainability principles into their operational structures and leverages new technologies to safeguard the environment and communities.

VEDANTA RANKS AMONG TOP SUSTAINABLE COMPANIESVedanta has embraced sustainability as a comprehensive, integrated business practice that involves collaboration, innovation, and a course of action. The company has made significant improvements in environmental, social and governance (ESG) performance with its Dow Jones Sustainability Indices (DJSI) ranking in the metals and mining sector having risen to 12 this year, as against 21 in 2019. Vedanta group company, Hindustan Zinc ranked 8 in the global tally. HZL and Vedanta have topped the DJSI rankings in the Asia Pacific region.

The DJSI – which are float-adjusted market capitalization weighted indices – evaluates the sustainability performance of the world’s largest companies.

MINIMIZING CARBON FOOTPRINTVedanta has re-constituted the ‘Carbon Forum’ to help steer the group towards a less carbon-intensive way of operating. The company had set targets to reduce its GHG emissions intensity by 16% by 2020, from a 2012 baseline. At the end-of-cycle, we were able to achieve a reduction of 13.83%, which is equivalent to ~9 million TCO2e in avoided GHG emissions. Discussion are underway across our businesses to finalize our FY2025 and FY2030 GHG reduction targets.

Vedanta is committed to substantially decarbonize its operations by 2050. The thrust will be on innovation and investment in renewables. Minimizing the company’s environmental footprint is essential for long-term sustainability. Vedanta aims to deliver growth and long-term value while upholding sustainable development through its diversified portfolio of large, long-life and low-cost assets. The company has launched several initiatives under the “Waste to Wealth” initiative and deployed technologies that will not only aid in reducing the volume of waste produced, but also improve metal recovery rates. The goal is to develop processes and value-chains that enable the creation of a circular economy model, thereby eliminating future waste streams

VEDANTA SIGNS CARBON NEUTRALITY PLEDGEIn a major step to lower greenhouse gas emissions, Vedanta has joined hands with the Government of India to sign a declaration on climate change by voluntarily pledging to move towards carbon-neutrality. Vedanta signed this declaration, along with 24 top private companies, which have aligned themselves with India’s commitment under the Paris Agreement. The mission is to take the country to net zero emission goal through specific emission measures, including promotion of renewable energy, enhanced energy efficiency, water efficient processes, green mobility, planned afforestation and waste management & recycling

VEDANTA’S CALL OF DUTY

VEDANTA: FOCUS ON ESG PRACTICES

NAND GHAR

VEDANTA FOUNDATION: A BEACON OF HOPE

BASELINE REPUTATION ASSESSMENT STUDY

Vedanta, in partnership with the Ministry of Women and Child Development, has set up Nand Ghar, a project that is transforming the Anganwadi ecosystem with modern amenities and focuses on eradicating child malnutrition, providing interactive education, access to quality healthcare, and empowering women by providing skill development.

Nand Ghar, which is operating more than 1700 centers across 7 states, aims to change India’s future by transforming the lives of 8 crore women and 2 crore children at the grassroots level.

A PARTNERSHIP BETWEEN TWO GLOBAL PHILANTHROPISTS

Global philanthropists Bill Gates and Anil Agarwal have announced a new partnership to support the Government of India’s Ministry of Women and Child Development (MoWCD) as it works to achieve United Nations Sustainable Development Goal 2, which aims to end all forms of hunger and malnutrition by 2030. During a virtual meeting last week to discuss ways to work together, Bill Gates and Anil Agarwal expressed their shared belief that the future of children and women will be made more secure by eradicating poverty at the grassroots level.

Bill & Melinda Gates Foundation will partner with the Anil Agarwal Foundation and the MoWCD to set up 500 Nand Ghars in Uttar Pradesh over the next 12 months. Nand Ghar and the Bill & Melinda Gates Foundation will jointly fund the expansion program in a 50:50 ratio and help in the transformation of the Anganwadi ecosystem and strengthen nutrition interventions in the state of Uttar Pradesh.

Vedanta Foundation, a philanthropic initiative of Vedanta Resources Limited, has been serving the people of this nation since its inception in 1992. The Foundation works to uplift the less privileged communities by making them adept with the skills to run their livelihood independently.

Vocational Training Program has been the flagship project of the Foundation, with the numerous centres turning around the lives of 1.4 million beneficiaries since last 27 years. The Foundation runs higher and primary education institutes for students from less-privileged communities. It runs three colleges and two schools that are focused on providing quality education The Foundation also manages two special schools in Mumbai and Bharatpur that are imparting education and care to the specially-abled children.

BALCO MEDICAL CENTRE: PROVIDING CANCER CARE DURING COVID TIMESBMC, the flagship healthcare initiative of the Vedanta Group, is a state-of-the-art 170-bed therapeutic cancer care hospital in Raipur. Working on the fundamentals of Triple C – ~Compassion, Care and Cure’ – BMC provides affordable, world-class treatment and is fast emerging as a national leader in the oncology space. The hospital has treated over 5,500 cancer patients since its inauguration in March 2018.

At Balco Medical Centre (BMC), even before the onset of coronavirus outbreak, the Hospital Infection Control Committee established stringent systems and processes. Additional protocols have been put in place to ensure that cancer patients and health care professionals are safe.

BMC is the first hospital in Chhattisgarh to have received approvals from State and National Accreditation Board for Testing and Calibration Laboratories (NABL) to do the testing for COVID. The laboratory department at BMC comprises some of the finest histopathologist, microbiologists, lab technicians who are supported with world-class instruments and equipment.

VEDANTA SPORTS UNIFYING COMMUNITIESThe Vedanta Group has been incubating sporting programmes at the grassroots level to transform India into a global sporting powerhouse. To give wings to this dream of letting every child play and excel in sports, Vedanta Sports was born as an umbrella brand designed to create a unified narrative for all the sporting activities across the group.

Vedanta shares the dream of millions of Indians who want to see the country on the world football stage. To achieve this goal, Vedanta has invested Rs 100 crore in the past decade to develop grassroots football in the country. Two state-of-the-art academies have been set up in Goa and Rajasthan, showcasing Vedanta’s commitment to the cause of the football, the most-loved sport globally.

EMPOWERING WOMEN THROUGH SPORT

In line with the Vedanta Group’s key focus on women empowerment, Vedanta Women’s League was rolled out in collaboration with Goa Football Association. The league provides a platform for women footballers in the state to gain competitive experience and showcase their skills. The Vedanta Women’s League is gaining popularity with the successful completion of the three editions reaching out to more than 300 aspiring footballers. Two of these girls have represented the senior national women’s team in various tournaments.

TRAINING DURING COVID TIMESIn line with Vedanta’s policy of Safety First, the Vedanta football academies sent the trainees home during the outbreak of Covid-19 so that they could be safe with their families. The on-ground activities had come to a halt. However, to keep the footballers in them up and running, the coaches and technical staff developed e-mentorship modules, and consistently connected with the players over virtual platforms to improve their physical and mental conditioning. Along with regular training, consultation on nutrition and sleep patterns have also been part of the agenda through online video sessions.

In a recent survey, the perception of Brand Vedanta was benchmarked vis-à-vis leading conglomerates of India. The survey covered more than 2,400 respondents that included Government / Media & Influencers/ Employees/ NGOs & Partners /Suppliers and the general public across 10 cities.

THE SURVEY WAS CARRIED OUT WITH THE FOLLOWING OBJECTIVES1. To assess Vedanta Group’s BRAND PERCEPTION as compared to other prominent

Indian conglomerates.2. Draw insights from STAKEHOLDER SENTIMENTS towards the brand.3. Understand stakeholder EXPECTATIONS from the brand beyond what is already being done4. Set a BENCHMARK to continue our brand journey in comparison to other prominent Indian groups.

KEY FINDINGS OF THE SURVEYVedanta has been ranked in 2nd position among peers surveyed

BRAND LEADERSHIP SCOREVedanta achieved a strong overall Brand Score of 3.6/5.The survey showed Vedanta as a brand is seen as a Great Employer (3.2/5), Nation Builder (3.7/5) and Making a Social Impact (3.9/5).

TRUST SCORE: Vedanta achieved a Trust Score of 3.63/5 from its primary stakeholders, while the overall score, with general public perception added, was 4/5, mainly on account of a successful brand campaign execution and brand recall.

*72.6% of the respondents cited Vedanta as a trustworthy brand. *Anil Agarwal brand was associated with 'Giving Back’, being a 'Visionary’ and for the 'Nand Ghar project’

REPUTATION SCOREVedanta obtained a Reputation Score of 3.62/5 in the primary stakeholders’ category, but with general public perception added, the score rose to 3.89/5. This reflected a positive change in public perception towards Brand Vedanta.

72.4% of the respondents rated Vedanta as a brand of repute People connected with the brand respect and admire the work we are doing. Big improvement in perception from the pre-brand campaign study done in August 2019

ENGAGEMENT SCOREVedanta received an Engagement Score of 3.55/5 in the primary stakeholders’ category. However, with general public perception added, the score jumped to 3.72/5.

Most stakeholders feel a strong engagement with the brand at varied levels Consistent engagement led to better understanding of the brand.

OVERALL SENTIMENT SCOREVedanta has been ranked in the 2nd position among all peers surveyed, with an overall brand score stands of 3.66/5. This is the composite score achieved across all stakeholders and includes the public perception of the brand.

NGOs and Government officials have rated the brand quite high. Nand Ghar and Employment Generation were the most recalled terms in the CSR domain 'Desh ki Zarroraton ke liye’ was the recalled Brand Campaign

NEW YEAR

MESSAGE FROMCHAIRMAN

Vedanta Newsdesk

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THE YEAR THAT WAS...