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Vedanta Business Responsibility Report
- 1. BUSINESS RESPONSIBILTY REPORT GROUP MEMBERS: MOHD. FAISAL KHAN, NIDHI SHARMA & LAXMI SWARUPA DAS MRBR | CASE 8 | PGDFM 2019-2021 | IIFM
- 2. INTRODUCTION • Vedanta Limited is a global diversified metal and mining company. • It has its presence in many high growth markets countries such as - • India, South Africa, Namibia, and Australia. • It is one of the largest mining, non-ferrous metals company in India. (HZL) • Vedanta Resources was listed on the London Stock Exchange in December 2003. (was a constituent of the FTSE 100 Index) Founded in 1979 at Bombay, India. Current Headquarter: London, United Kingdom Founder – Dwarka Prasad Agarwal (Father of Anil Agarwal) Employees – 76,752 (2019) Products – Zinc, Lead, Silver, Oil & Gas, Iron Ore, Steel, Aluminum and Power. Revenue: US$ 14,031 mil. (2019) Operating Income: US$ 1,949 mil. Net income: US$ 424 mil.
- 9. ENVIRONMENTAL DAMAGE & NIYAMGIRI HILLS The Kondh Tribes in the region opposed the move in 2008, supreme court granted clearance to deforest the area to conduct the mining Vedanta started a joint venture with Odisha Mining Corporation Ltd. To mine bauxite from Niyamgiri Hills Saxena Committee There had been blatant violations of the rights of the tribes under the Forest Rights Act 2006 by Vedanta and OMCL, and even the rights of Dalits not protected under that Act. Vedanta ended up losing over Rs 4,000 crores There had been repeated violations of the Forest Conservation Act 1980, with Vedanta wilfully concealing information about the project. MoEF gave stage 1 clearance in 2009 faced international condemnation The Gram Sabhas set up to look into the matter unanimously rejected the project in 2013 Vedanta had committed significant violations of the Environmental Protection Act 1986 when it came to the refinery, which had been expanded without getting environmental clearances. human rights and activist groups, Survival International, Amnesty International and Niyamgiri Surakshya Samiti Refused to grant stage 2 clearance
- 10. STERLITE PROTEST FIRING • This event took place on 22 & 23 May 2018 in Thoothukudi, Tamil Nadu. • The violence took place during an ongoing protest against proposed expansion of a copper smelter plant run by Sterlite Corporation • Police opened fire on the protesters, killed 13 people and left 102 injured. Several policemen were also injured during the protests • The United nations condemned the firing by the police as excessive and disproportionate. • Vedanta delists from London Stock Exchange amid protests. KORBA, CHHATTISGARH. • Under-construction chimney was collapsed at the power plant in Sep. 2009 • Which resulted the death of 40 people and many people got injured. • In 2012, state-appointed judicial commission found that – it was caused by due to negligence of BALCO, the contractors and relevant govt. • In Sep. 2017, the Chhattisgarh Environment Control Board (CECB) instructed BALCO to shut down the power plant for violation of the Water (Prevention and Control of Pollution) Act 1974. • BALCO was reportedly pumping polluted water into a nearby canal (which drains into the Hasdeo river) after the ash dyke at the plant was damaged. CHINGOLA, ZAMBIA. • Residents of Chingola filed civil cases against Vedanta and KCM claiming that they were negligent and violated Zambian environmental laws • Waste from the mine is alleged to have polluted the local waterway and caused personal injury and damage to property. • Vedanta tried to argue that the English courts couldn’t hear the case as it related to claims in Zambia • But the English Court of Appeal rejected these claims, and allowed the claims of the 1,826 Zambian villagers to proceed • The main case hasn’t yet been decided..
- 11. Business Responsibility Report FY 2018-19
- 12. P1 : CONDUCT, GOVERNANCE, ETHICS, TRANSPARENCY AND ACCOUNTABILITY ● Established code of conduct for business ethics ● Whistle blower policy:1 out of 25 reported cases verified and resolved. ● Supplier code of conduct ● Zero tolerance : applies to all officers, directors, and employees of the company and subsidiary ● Values:Transparency and integrity
- 13. P2: SAFETY AND OPTIMAL RESOURCE UTILISATION ACROSS PRODUCT LIFECYCLE. ● Limited control over downstream value addition and use of products ● 95% produced water in oil and gas is recycled ● 100% domestic treated sewage water used for horticulture ● Commitment to reduce GHG emissions by 16% by 2020 over 2012 levels.
- 15. P4:ENGAGING STAKEHOLDERS: SUSTAINING VALUE 101 complaints received and responded to. Shareholders Promoting best practices Industry Consultation and participation based on SEPs Civil society Compliance with national laws and regulations Host government Disadvantaged and vulnerable groups catered to through CSR activities Communities
- 16. P5:PROMOTING HUMAN RIGHTS ● Human rights policy aligned with UN guiding principles with strict prohibition on child or forced labour underpinned by national legislation on the same ● Mandates for suppliers, NGOs and contractors too ● Zero human rights violations reported.
- 17. P6:NURTURING THE ENVIRONMENT ● With sustainable development framework in place encompassing HSE policy, EM standards, and policies specific to biodiversity, energy and carbon, and water management. ● All sites are ISO 14001 certified ● Regular internal audits are conducted to prepare Corrective Action Plans, capability development, and management review. ● Energy portfolio diversification and efficiency ● Carbon forum constituted to strategize on risks to company from Climate change: CBS, risk assessment and interconnectedness.
- 18. P7: RESPONSIBLE POLICY ADVOCACY ● A member of TERI, CII, WBCSD, IBBI, ASSOCHAM for constant improvement on sustainability practices. P8: Support Inclusive development ● An investment of INR 51.72 cr made in supporting neighbourhood communities. ● Poverty alleviation programmes ● Children’s education and well-being: 50,000 children covered ● Drinking water and sanitation: Jeevan amrit project ● Agriculture and animal husbandry ● Community infrastructure: Rainwater harvesting, community ponds, etc ● Upskilling youth for better employability P9:Proving customer value: TQM, 1SO 9001.
- 19. LOSS AND PROFIT ANALYSIS OF VEDANTA LTD. LOSS • During the last five years of curtailed operation, the company has lost about Rs 2,500 crore on an investment of Rs 5,000 crore in the Lanjigarh plant”. On the other hand, the company claims, that he contributed Rs 830 crore to both the Centre and the state government in the form of taxes and spent another Rs 170 crore on peripheral development activities in Lanjigarh. Now, in the idle state also, the company has to spend Rs 10 to Rs 11 crore towards salaries, electricity bill, payment to contractors, establishment cost and maintenance. • The consolidated income of the company during January-March quarter dropped to Rs 20,382 crore, over Rs 25,096 crore • Diversified natural resources firm Vedanta reported consolidated net loss of Rs 12,521 crore for the quarter ended March 31, 2020 on the exceptional loss of Rs 17,132 crore, primarily due to impairment of assets in oil and gas, copper and iron ore business. PROFIT • Vedanta Ltd reported a 49.1 per cent rise in its consolidated profit at Rs 2,348 crore for the December 2019 quarter, on the back of lower expenses. • The company released a report that the profit of Rs 1,574 crore in the October-December period of the previous financial year, Vedanta Ltd said in a filing to the BSE.
- 20. THANK YOU