Vedanta plays a vital role in India’s development journey, as a globally recognised player in natural resources and technology. With a steadfast focus on responsible practices, the company integrates sustainability and ethical governance into its operations, aligning with global benchmarks and supporting the nation’s progress toward inclusive and enduring growth
Vedanta’s legacy of over six decades is deeply intertwined with India’s emergence as a global leader in natural resources and technology. Our journey is not merely about growth but about embedding sustainability and responsible governance into the very fabric of our business. At Vedanta, ESG is not an add-on – it is integral to our DNA, guiding every strategic decision and operational action as we drive India’s self-reliance in critical natural resources and foster the transition to a greener economy through transformative metals.
Our philosophy of “Evolving Today and Shaping Tomorrow” reflects a continuous commitment to innovation and transformation, ensuring that sustainable growth and value creation remain central to our purpose. We recognise that the complex ESG challenges we face – ranging from climate change and water security to social inclusion, human rights, and governance – demand integrated, forward-looking systems embedded across all levels of the organisation. This holistic approach enables us to anticipate and address evolving regulatory landscapes and stakeholder expectations with agility and accountability.
Vedanta’s comprehensive ESG framework is anchored on three strategic pillars: Transforming Communities, Transforming the Planet, and Transforming the Workplace. Through these, we have a vision of empowering over 2.5 million families with skills, uplifting vulnerable populations via education and healthcare, and fostering inclusive development that strengthens social fabric.
Concurrently, our ambitious climate agenda commits to achieving net-zero carbon emissions by 2050 or sooner, with an aim to spend US$ 5 billion over the next decade. We are advancing our renewable energy integration and driving energy efficiency across our operations to align with India’s national goals and global climate imperatives. Vedanta continues to prioritise workplace safety by striving for zero fatality and ensuring optimal health and safety conditions for employees. Additionally, substantial investments in community development initiatives have strengthened its social licence to operate, fostering resilience and inclusive growth across the regions it serves.
Our governance practices emphasise transparency, leadership accountability, and adherence to best- in-class sustainability frameworks such as SASB, GRI, TCFD and TNFD. We actively engage a diverse set of stakeholders – including investors, regulators, communities, and employees – to ensure our strategies reflect broad-based insights and create shared value. Initiatives like the Vedanta Academy for Sustainability (VEDAS) exemplify our commitment to building a sustainability-first workforce, equipping over 1,00,000 employees and partners to embed ESG principles into everyday business practices.
In today’s interconnected and rapidly evolving landscape, Vedanta stands as a responsible corporate citizen, integrating ESG at the core of our strategy to build lasting impacts. Our approach not only mitigates risks but also unlocks opportunities for innovation and resilience, positioning us to contribute meaningfully to India’s sustainable development and the global transition to a low-carbon, equitable future.
These pillars are the foundation of our commitment, demonstrating that no challenge is too vast for us to tackle. By setting realistic short-, medium-, and long-term milestones as reflected in our ESG Scorecard and Factsheet, we are operating within a robust Environmental, Social, and Governance (ESG) framework to ensure our efforts are both impactful and sustainable.
A robust ESG governance mechanism is crucial for companies to navigate and mitigate environmental, social, and governance risks with agility, ensuring compliance with evolving regulations and industry standards. It fosters transparency and accountability, building trust with stakeholders while driving sustainable innovation. This positions the company as a leader in responsible business practices, aligning with global sustainability aspirations.
They ensure that standardised practices are followed across all Vedanta entities and provide monitoring and oversight for the ESG roadmap implemented throughout the business. Each business unit has its own ESG teams, which are responsible for executing the ESG strategy at their respective levels.
To advance our sustainability agenda, it is vital that our leaders and employees fully grasp both the sustainability risks and challenges as well as the innovative strategies Vedanta has implemented to address them. Embedding sustainability into our organisational fabric is driven by a culture of accountability, with responsibility distributed at every level. While our ESG strategy follows a top-down framework, our 13 function-specific Communities of Practice (CoPs) at the Strategic Business Unit (SBU), Business Unit (BU), and Vedanta Level foster a dynamic, bottom-up approach. This decentralised and inclusive model empowers individuals across the business to actively engage in ESG initiatives.
BIODIVERSITY
COMMUNICATION
COMMUNITY
ENERGY & CARBON
EXPANSION
FINANCE
HEALTH
PEOPLE
SAFETY
SECURITY
SOCIAL PERFORMANCE
WASTE
WATER
A strong ESG governance mechanism is essential for companies to manage risks, meet regulatory requirements, and build long-term value through sustainable business practices. Vedanta’s ESG Governance Structure is showcased below:
At the highest level, Vedanta’s Board oversees and approves key sustainability initiatives, with the Board ESG Committee meeting bi-annually to review ESG performance, assess material issues, and refine actions for execution. The Board ensures global best practices are integrated into the strategy, maintaining Vedanta’s competitive edge and alignment with evolving sustainability standards.
The management group, led by the ESG Executive Committee, bridges strategy and execution, providing monthly updates and ensuring alignment with business priorities. The ESG team directs initiatives, collaborating with internal and external stakeholders, while the Corporate Transformation Office (TO) and ESG Management Committee meet monthly for transparency and performance assessment.
At the BU and SBU levels, dedicated ESG teams manage on-ground implementation, supported by "Communities of Practice" that bring together representatives from various functions. Vedanta's Transformation Office and Communities of Practice (CoP) are instrumental in driving strategic initiatives. The Transformation Office focusses on operational excellence, digital transformation, and sustainability through projects. Meanwhile, the CoP oversees community-focussed initiatives, ensuring social performance by addressing concerns and fostering engagement.
These entities work together to enhance Vedanta's social licence to operate and align its actions with global standards. This collaborative approach supports Vedanta's broader sustainability goals.
To strengthen our ethos, Vedanta offers transformative training programmes as well covering sustainability, ESG strategy, health and safety, the code of conduct, and human rights, ensuring alignment across employees and partners. A significant milestone in this journey is the launch of VEDAS (Vedanta Academy for Sustainability), an organisation-wide capacity-building initiative based on the 3C Model – Cultivate, Catalyse, and Cascade. VEDAS aims to embed sustainability into Vedanta’s operations by creating sustainability champions and fostering an ecosystem-wide culture of responsibility. This initiative positions Vedanta as a leader in shaping a sustainable future while driving meaningful impact across its workforce and communities.
The Board ESG Committee sets the tone at the top and ensures that ESG considerations are embedded into decision-making at the highest level. It provides critical leadership, assesses risks and opportunities, and ensures that the company is held accountable for its ESG commitments.
The Board ESG Committee meets twice in a year and charts the course for turning key material issues into executive action. This Committee also remains vigilant about keeping Vedanta’s ESG strategy in sync with global and industry developments and in ensuring that we stay ahead and competitive.
During this financial year, the Board’s ESG Committee focussed on the following material issues: The micro-level concerns covered under each of these material issues are as follows:
Half Yearly
In FY 2024-25, the Board focussed on
The Vedanta Sustainability Framework (VSF) serves as a comprehensive guide for embedding sustainability into our business operations and decision- making processes. Aligned with global best practices and international standards, VSF integrates principles from leading bodies such as the International Council on Mining and Metals (ICMM), International Finance Corporation (IFC), Organisation for Economic Co-operation and Development (OECD), United Nations Global Compact (UNGC), and the Sustainable Development Goals (SDGs). Our comprehensive Sustainable Development Framework comprises a range of sustainability policies, standards, and guidance documents.
To drive consistent sustainability performance, we have incorporated a robust set of policies, standards, and guidelines. This framework not only ensures adherence to world- class sustainability practices but also fosters positive outcomes for our business, the environment, and the communities we serve.
We provide education, training, and development opportunities for our employees and business partners, ensuring their unwavering commitment to adherence of top-tier sustainability standards, processes, and principles
9 Sustainability Policies
92 Standards and Guidance Notes
Robust Monitoring
1
Ensures safe working conditions and minimises health risks.
2
Upholds human rights across all operations.
3
Enhances community engagement and social welfare
4
Aims to minimise environmental impact through sustainable practices.
5
Focusses on reducing greenhouse gas emissions and promoting renewable energy.
6
Promotes sustainable practices among suppliers.
7
Protects and conserves biodiversity in areas of operation.
8
Ensures efficient use and conservation of water resources.
9
Ensures safe and responsible management of tailings facilities.
We provide education, training, and development opportunities for our employees and business partners, ensuring their unwavering commitment to adherence of top-tier sustainability standards, processes, and principles.
The Vedanta Sustainability Assurance Process (VSAP) is a performance monitoring and risk management tool that ensures all business units adhere to the Vedanta Sustainability Framework (VSF). To uphold world-class standards in safety, environmental stewardship, and sustainability, ESG criteria are mandatory Key Performance Indicators (KPIs) for leadership evaluations, directly linked to annual appraisals and increments. VSAP assesses environmental stewardship, health and safety, community engagement, and human rights, ensuring compliance across our diverse business portfolio. It involves systematic monitoring, corrective action tracking, and periodic external audits by subject matter experts. Operating on an annual cycle, VSAP is overseen by the Sustainability and Executive Committees, which monitor progress and report to the Board and has a weightage of 15% in annual performance-linked KPIs that determine executive compensation Any identified gaps lead to management plans and corrective measures, with continuous evaluation to enhance performance.
