TRANSFORMING TRANSFORMING TRANSFORMING SUSTAINABILITY REPORT FY 2023 COMMUNITIES THE PLANET THE WORKPLACE Supply Chain Assessment and Capacity Building Programmes Development business-critical partners who provide Evaluation criteria for our business partners We maintain ongoing engagement with our Vedanta upholds its brand values of essential components or services with include: supply chain partners through various integrity, transparency, and responsibility limited alternative follow a risk-based initiatives such as training programmes. These with utmost dedication. To ensure approach to determine the need for • Historical financial performance training sessions are specifically designed to consistency, we have streamlined a additional due diligence or risk audits for • Management capability, including the enhance safety awareness and practices methodological approach for assessing its business partners. This may involve ability to meet regulatory among our business partners and and monitoring key performers based on third-party audits against benchmarked requirements contractors, including on-the-job safety HSE, business ethics and climate change standards. Business partners are training and safety town-halls aligned with parameters. This process helps to identify segmented based on the risks they • Stability and scale of their business Management Standard Competency, Training and track potential risks within the pose to our operations, using criteria operations and Awareness. By providing these platforms, Company’s supply chains. we not only prioritise the safety of all business such as inbound supply chain risk and • Quality of the product/service offered the significance of suppliers and service partners, but also create opportunities to Risk Assessment: Our Technical Standard providers as per defined definitions. To • Ability to adhere to our Supplier Code explore new markets and services while Supplier and Contractor Management ensure responsible sourcing, especially of Conduct - including HSE criteria, familiarising them with the best industrial outlines the fundamental components of in conflict-affected and high-risk areas MSA (Modern Slavery Act) compliance, practices. This approach allows us to deeply our Supplier Risk Management procedure. (CAHRA), robust internal management environmental compliance embed sustainability principles, including This comprehensive process establishes a practices are implemented for Vedanta's decarbonisation aspirations, • Adherence to timelines and continuity uniform method for handling risks conducting due diligence, that enables of delivery throughout the entire value chain. associated with suppliers and their Vedanta to identify, assess, and performance throughout the entire effectively manage potential risks • Collaborating with new-age innovative organization. associated with its supply chains. start-ups CAPACITY BUILDING PROGRAMS • Capacity building around best Desktop assessment: The preliminary In addition, the Company has industrial practices Total number of suppliers in capacity assessment of a supplier involves a implemented a process to identify and building programs thorough analysis conducted through report potential red flags and the desktop review. This helps us to recognize outcomes of risk assessments to senior 492 sustainability matters associated with a management. This enables Vedanta to FY 2023 supplier. These matters could be of proactively identify and address risks present significance and interest to within its supply chains. In cases where % of significant suppliers in capacity essential external stakeholders like red flags are detected, enhanced due building programs regulators, NGOs and wider industry/sector diligence measures are undertaken to developments. thoroughly investigate the presence of 44% risks, which may include serious human FY 2023 On-site Assessment: Vedanta conducts rights abuses, risks related to security annual third-party on-site assessment for forces, support to non-state armed its significant suppliers to understand groups, money laundering, tax evasion, whether the suppliers are compliant with bribery, and fraudulent social and environmental regulations misrepresentation of material origins. applicable in their respective regions Vedanta prioritises strategic or 107