Vedanta Limited’s pledge to invest USD 5 billion in decarbonization initiatives over the next decade reflects its unwavering commitment to ESG principles.
Words Rusen Kumar
NEW DELHI (India CSR): Vedanta Limited has set a bold vision for the future with a commitment to invest USD 5 billion, approximately Rs. 41,000 crore, over the next decade in decarbonization initiatives. This investment is a significant step towards sustainable growth and environmental responsibility. With a strong team of over 1,600 driving this transformation, Vedanta is well-positioned to lead in sustainable business practices.
Arun Misra, Executive Director of Vedanta Limited, recently presented the company’s 4QFY24 investor presentation. In this presentation, he highlighted the mining and metal leaders’s ambitious plan to mammoth investment, over the next decade on various decarbonization initiatives. This move underscores Vedanta’s commitment to Environmental, Social, and Governance (ESG) principles, aiming to lead the way in sustainable business practices.
Led by Chairman Anil Agarwal, Vedanta Limited, a subsidiary of Vedanta Resources Limited, stands as a leading global conglomerate in the natural resources sector. With a diversified portfolio, the company’s primary operations encompass zinc-lead-silver, iron ore, steel, copper, aluminium, power, nickel, and oil and gas.
Decarbonization initiatives are comprehensive efforts aimed at reducing or eliminating carbon dioxide (CO2) emissions and other greenhouse gases (GHGs) from various sectors of the economy and human activities. The ultimate goal is to transition to a low-carbon or carbon-neutral society to mitigate the impacts of climate change. However, Decarbonization is a complex and multifaceted challenge that requires a collaborative effort from governments, businesses, and individuals. By implementing ambitious initiatives and fostering innovation, we can transition to a more sustainable and resilient future.
ESG: Commitment to Excellence – Path to Leadership
I observed Vedanta’s ESG strategy is centered on 11 key aims. These aims reflect the company’s dedication to integrating community welfare, environmental sustainability, and robust governance into its business operations.
1. Community Welfare at the Core
Keeping community welfare at the heart of its business decisions is a primary aim for Vedanta, One of the world’s foremost natural resources conglomerates. The company is committed to empowering over 2.5 million families by enhancing their skillsets. Through various programs, Vedanta has already skilled 1.4 million families, marking a 40% year-on-year increase.
2. Uplifting Women and Children
Vedanta aims to uplift over 100 million women and children through education, nutrition, healthcare, and welfare programs. The company has already impacted 17.4 million women and children, providing them with better opportunities and improved quality of life. Initiatives like the establishment of over 6,000 Nandghar centers are pivotal in this endeavor.
3. Net-Carbon Neutrality by 2050
A significant aspect of Vedanta’s ESG goals is achieving net-carbon neutrality by 2050 or sooner. The company is investing in renewable energy projects and other green technologies to reduce its carbon footprint. Currently, Vedanta has 838 MW of renewable energy under construction, demonstrating its commitment to a sustainable future.
4. Achieving Net Water Positivity by 2030
Water conservation is another critical focus area for Vedanta. The company aims to achieve net water positivity by 2030. This involves implementing efficient water management practices and technologies. As of now, Vedanta has achieved 0.7x water positivity, indicating substantial progress towards this goal.
5. Innovations for a Greener Business Model
Vedanta is continuously innovating to develop a greener business model. This involves leveraging new technologies and practices to minimize environmental impact. The company’s efforts in renewable energy have led to the usage of over 1 billion units of renewable energy for three consecutive years.
6. Prioritizing Safety and Health of Employees
The safety and health of employees are paramount to Vedanta. The company has implemented rigorous safety protocols and health initiatives to ensure a safe working environment. This commitment is reflected in the company’s high health, safety, and environmental standards.
7. Promoting Gender Parity, Diversity, and Inclusivity
Diversity and inclusivity are integral to Vedanta’s workplace culture. The company aims to promote gender parity and has already made significant strides, with women constituting 20% of the workforce and 33% in enabling functions. Additionally, Vedanta has included 38 transgender individuals in its workforce, promoting inclusivity.
8. Adhering to Global Business Standards
Vedanta is dedicated to adhering to global business standards of corporate governance. This includes transparent reporting, ethical business practices, and responsible management. The company’s strong governance framework ensures accountability and integrity in all operations.
9. Transforming Communities
Vedanta’s ESG initiatives have a profound impact on communities. The company’s efforts in skilling, healthcare, and education have transformed the lives of millions. By focusing on community welfare, Vedanta is building a sustainable and prosperous future for all. Read full Report. Also Read CSR Spending Report for FY 2024.
10. Transforming the Planet
Vedanta is committed to transforming the planet through its environmental initiatives. By investing in renewable energy, achieving water positivity, and striving for carbon neutrality, the company is playing a crucial role in mitigating climate change.
11. Transforming the Workplace
Vedanta is also transforming its workplace by fostering a culture of safety, diversity, and inclusivity. This ensures that all employees are valued, respected, and provided with a safe and healthy work environment.
Key Highlights of FY’24
Vedanta’s ESG achievements in FY’24 are noteworthy. The company has planted 2 million trees, achieved 90% high-value technology utilization, and maintained significant renewable energy usage. These accomplishments highlight Vedanta’s ongoing commitment to sustainability.
Important Facts about Vedanta’s ESG Initiatives
| Total Investment | USD 5 Billion (Rs. 41,000 crore) |
| Skilled Families (FY’24) | 1.4 million (40% y-o-y increase) |
| Women & Children Uplifted (FY’24) | 17.4 million |
| Renewable Energy Under Construction | 838 MW |
| Water Positivity Achieved | 0.7x |
| Nandghar Centers Established | 6,000+ |
| Women in Workforce | 20% (33% in enabling functions) |
| Transgender Employees | 38 |
| Trees Planted (FY’24) | 2 million |
| Renewable Energy Usage (FY’24) | 1.6 billion units |
| Carbon Neutrality Goal | By 2050 or sooner |
| Net Water Positivity Goal | By 2030 |
| ESG Team Size | 1,600+ |
*****
About the Author
Rusen Kumar is the founder and managing editor of India CSR – The CSR watchdog of India. He writes on CSR, Sustainability and Environmental affairs.
(India CSR)
Also Read
