TRANSFORMING TRANSFORMING TRANSFORMING SUSTAINABILITY REPORT FY 2023 COMMUNITIES THE PLANET THE WORKPLACE Vedanta Sustainability Assurance Process (VSAP) Vedanta Sustainability Assurance Process or Executive compensation linked to ESG VSAP, is a tool used by Vedanta to assess the compliance of all our business units with the Compensation Topics Brief Summary Impact Details Vedanta Sustainability Framework. It plays a crucial role in ensuring that sustainability Scorecard-based KPIs Emphasis on objective and Annual performance rating and ESG is a mandatory KPI for all employees including considerations are effectively integrated into transparent KPIs fixed pay senior leaders – to foster a culture of safety/sustainability all decision-making processes and actions across the organization, and aims at driving continuous improvement and accountability ESG component in Safety/sustainability Annual bonus pay-out A minimum score of 70% is needed in VSAP audit in sustainability practices. annual performance scorecards have a 15% as a threshold for pay-out under this component. bonus weightage VSAP Audit has extensive factors in place – Assurance Models We consistently foster a culture that upholds a total of 70 guidance (Compliance, New Projects, Process Safety) etc. world-class standards in safety, factors environmental stewardship, and sustainability. Safety Focus Works (Work at Height, Confined Space, etc) To further embed this culture, ESG criteria have been made a mandatory KPI for Integration of fatalities Fatalities are a negative Annual bonus pay-out 10% reduction on one fatality – leading to potential leadership during annual performance into annual bonus multiplier on the overall 25% reduction overall in case of multiple fatalities appraisals and increment cycles. We follow a performance (not just the formal scorecard-based performance ESG component) management approach across the entire organization, providing a unified experience for all full-time employees. Focus on long-term Integration of ESG into Long-term incentive payout ‘Long term strategic sustainable’ objectives have a sustenance long-term strategic KPIs weightage of 1/3 Executives driving the ESG agenda for the Group carry significant weightage in these ESG framework in LTIP Carbon footprint and Long-term incentive payout Carbon footprint evaluations, with the compensation structure plans fatalities integrated into 15% weightage in business performance comprising elements such as fixed pay, long-term incentive plan (40% of total weightage) in scheme benefits, annual bonuses, the Long-Term Fatalities Incentive Plan (LTIP), and components that 10% additional pay-out kicker in case of no consider holistic employee growth and fatalities during the vesting period well-being. 19