TRANSFORMING TRANSFORMING TRANSFORMING SUSTAINABILITY REPORT FY 2023 COMMUNITIES THE PLANET THE WORKPLACE Climate Governance Climate change is considered a crucial 4-stage GHG Reduction Roadmap aligned We are fully committed to becoming a "Net Zero Carbon" organization by 2050, or Net GHG emissions of governance issue at the Board level, and with 2⁰ C scenario. potentially even sooner. To achieve this goal, the Company has identified four key 3.31 MTCO e against 2 FY 2021 baseline and it is regularly discussed in various levers that will help us to reduce GHG emissions and meet our 2030 emission contexts such as strategy discussions, targets. These levers will pivot around renewable energy deployment, switching to 14.73 MTCO e against 2 business performance, investment low-carbon or zero-carbon fuels, improving energy and process efficiencies, and 2012 baseline decisions, and the assessment of From 2021 to 2025, we plan to reduce purchasing carbon offsets for residual emissions. scenario triggers and signposts . The GHG intensity (TCO e/MT) of our metal 2 Board members bring diverse expertise businesses by 20%, with the cumulative from sectors including resources, energy, change achieved being assessed in FY Levers for achieving decarbonization finance, government, and public policy. 2025, for a FY 2021 baseline. Lever 1: Increasing Renewable Energy Lever 3: Improving the energy and process efficiency At Vedanta, we have implemented a of our operations comprehensive governance framework • By end of FY 2023, power delivery agreements to effectively integrate climate change From 2021 to 2030, we will create (PDAs) for 788 MW of renewable energy have • Several energy efficiency projects completed: considerations into our business been finalized and an additional 50 MW has (i) R&M of 1 unit of 600 MW at VAL Jharsuguda Savings potential renewable energy capacity that can been approved by the Board. 370,000 TCO e/year operations and strategic planning. ensure 2.5 GW of Round-The-Clock 2 The Board assumes responsibility for • Resultant avoidance of 6.6 million tonnes of (ii) VAL Lanjigarh Evaporation - 1 Calendria 1 & 2 tubes (RTC) equivalent renewable power CO2e per year replacement Savings potential 18,000 TCO e/year overseeing all sustainability matters, power for our facilities by FY 2030. 2 (iii) VAL Lanjigarh Boiler 2 junior APH replacement Savings which includes the climate change • 32% of the target of 2,500 MW RE-RTC power by 2030, aligned potential 16,000 TCO e/year agenda. 2 (iv) ESL Fuel crushing index improvement Savings potential 31,000 TCO e/year Aligning with the global call for climate Lever 2: Switch to low-carbon/zero- 2 Between 2026 to 2030, we will push carbon fuels (v) ESL LD gas recovery project completion Savings potential action and transparency, we have taken 18,000 TCO e/year towards decarbonisation to actually start 2 the bold step of integrating climate yielding results. We anticipate a reduction considerations into our long-term • Target of 5% coal substitution with biomass in Several projects are planned with the target of bringing energy strategies and decision-making in our absolute GHG emissions in line with our thermal power plants efficiencies to the aluminium sector. These include: processes. Our management is firmly our target of 25% absolute GHG (i) In FY 2023, 4x YoY growth in biomass usage, (i) 100% graphitisation with copper inserted collected bar Savings emissions reduction by FY 2030. This will potential: 1.1 MnTCO e/year 2 committed to stewarding a low-carbon reaching approx 78,000 MT growth path for our Company and be against a FY 2021 baseline. • Fleet electrification for mining fleets and (ii) Vedanta pot controller implementation Savings potential: 0.2 MnTCOe 2 oversees the systematic implementation Light-Motor-Vehicles: (iii) Commissioning of TRT and BPRT at ESL Savings potential: of our climate-focused strategies. Our (i) HZL launched its first BEV for working 82,000 TCO e/year underground and first 2 ESG Board Committee meets twice a (iv) Natural gas usage at Lanjigarh alumina refinery Savings year to discuss climate issues and their Beyond 2030, we will deploy emerging LNG-powered 55-tonne heavy-duty trucks potential: 1,20,000 TCO e/year technologies at scale and expand our (ii) Jharsuguda facility is running 27 electric 2 implementation. Climate issues are also forklifts on the agenda of the Board of Directors renewable energy capacities to become a and come up for annual review and net-zero carbon business by FY 2050. • Biofuel trials underway at BALCO and Purchase of carbon offsets for residual discussion. VAL-Jharsuguda and will soon start at Sterlite emissions Lever 4 Copper and Sesa VAB Our climate change strategy and We will consider this option for hard-to-abate GHG emissions at the roadmap follows the guidelines set by end of our target period, once our mitigation drives are over. the Paris Agreement to limit global temperature rise to well below 2°C, We aim to spend US$ 5 billion over the next decade to expedite our transition towards Net Zero operations. ideally within 1.5°C. The strategy revolves around: 55