Vedanta: Aiming To Be An ESG Leader Vedanta has made an enormous push on ESG over the last two years, Hindustan Zinc Limited is the first in the country to introduce battery operated EVs in underground mining
By Shrabona Ghosh •
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When the world is struggling to strike an ecological balance, it is the responsibility of large corporations to contribute in achieving sustainable goals. Vedanta has made an enormous push on ESG over the last two years and aspires to become a net zero carbon business by 2050 or sooner. It also plans to achieve net water positivity by 2030 and ensure gender diversity of 20 per cent across full-time-employees by 2030. The behemoth embraces the philosophy of `Zero Harm, Zero Waste, Zero Discharge'.
Despite a hard period of persistent pandemic disruption, global supply chain issues and cost constraints, Vedanta has collectively managed to produce good operational and financial success. The company's "Transforming for Good" is a vision which encourages group efforts to achieve inclusive, responsible and value-added growth. To provide real advantages to all stakeholders, the efforts will be supported by environmental stewardship, social equality, and impact, in addition to strong governance.
A major turning point in the global effort to combat climate change has been India's commitment that it plans to achieve net zero emissions by 2070. India is setting the bar for a novel approach to economic growth that might sidestep the carbon-intensive strategies many nations have previously adopted and serve as a model for other emerging markets. India's improved outlook in many ways is attributable to the government's quest for self-reliance in manufacturing minerals and resources. Vedanta has a portfolio of 9 metals & minerals that play a significant role in India's energy and mineral independence. "We envision playing an even greater role in the nation's growth narrative and in enabling India to become self-reliant in minerals and energy. This is crucial considering the expanding population and the rise in industrial activities. Vedanta is already expanding its capacities in the aluminum and zinc sectors. To strengthen our assets and boost production, we have invested USD 1.2 billion in growth capital expenditures in FY 2023," Anil Agarwal, founder and chairman of Vedanta Resources Limited, mentioned.
Priya Agarwal Hebbar, non-Executive Director, is a key pillar in strengthening ESG initiatives at Vedanta. Today, under Priya's leadership, Vedanta is on a transformative journey to emerge as an industry leader in ESG, with focused action plans on decarbonization, water positivity, workplace safety, community welfare and workforce diversity. The company's gender diversity has increased from 11 per cent to 14 per cent in one year and "We are well on our way to meet the target of 20 per cent by 2030," she explained, adding that women in STEM roles have also increased. "Our subsidiary HZL boasts of India's first female underground mining engineers. Besides, HZL is the first in the country to introduce battery operated EVs in underground mining."
Priya is the chairperson of Hindustan Zinc, under her aegis the company aims for power delivery agreement for sourcing up to 450 MW of renewable power by 2026, which will help reduce emissions to the tune of 2.7 mn tCO2e. There will be investments up to $1 billion over the next few years, which would include mitigation and adaptation measures. The company targets to achieve 75 per cent electrification of the mining fleet by 2035 and complete electrification by 2040.
In addition to environmental commitments, Vedanta prioritizes local employment, capacity-building initiatives, and support for education and healthcare. "In support of diversity, we have already begun deploying women in our underground mining operations. We are fully aware that ESG considerations are not just a moral imperative but also crucial for the long-term success and sustainability of our business," Priya added.
At Vedanta, the GHG intensity in terms of revenue has reduced by nearly 30 per cent from FY21 and re usage has increased 14 times since FY20. The water management programs have helped reduce net freshwater consumption by more than 10 per cent since FY20 and high-volume-low-toxicity waste recycling has gone up by more than 125 per cent from FY 2020. Aligned with the vision of the World Economic Forum, the company has a commitment to plant 7 million trees by 2030.
Further, by 2030, Vedanta hopes to have 2.5 GW of continuously operating renewable energy (RE RTC) capacity. It has implemented an innovative, market leading EV policy to encourage staff to transition to EVs, and plans to completely decarbonize the fleet of light motor vehicles by 2030.
