TRANSFORMING TRANSFORMING TRANSFORMING SUSTAINABILITY REPORT FY 2023 COMMUNITIES THE PLANET THE WORKPLACE Material Issue Business Case Impact (Cost, Business Strategies Risk, Revenue) Climate Change & Transitioning to a lower-carbon economy requires extensive changes in policies, regulations, Risk Our climate change strategy and roadmap prioritize net-zero emissions by aligning our financial capital allocation Decarbonization technologies, and markets to address mitigation and adaptation requirements related to climate framework and social values with the goals of the Paris Agreement. The roadmap consists of four stages: change. Depending on these changes, transition risks may pose varying levels of financial and a) From 2021 to 2025, we aim to reduce GHG intensity (TCO e/MT) of our metal businesses by 20% compared reputational risks to the Company. Increasing regulatory change and investor pressures aimed 2 at limiting or reducing GHG emissions are likely to impact the Company’s operations due to to the FY 2021 baseline, with cumulative progress assessed in FY 2025. increased costs for fossil fuels, levies for emissions exceeding permitted levels, and increased b) Between 2021 and 2030, our focus is on creating renewable energy capacity. By FY 2030, we aim to establish administrative costs for monitoring and reporting. For instance, the Carbon Border Adjustment enough capacity to provide 2.5 GW of round-the-clock (RTC) renewable power for our facilities. Mechanism will be applicable for our Aluminium as well as Iron & Steel business. The Company c) From 2026 to 2030, we expect to achieve a 25% reduction in absolute GHG emissions compared to FY 2021. would need to account for the carbon content of its products and potentially pay additional This reduction will be measured against the baseline as we actively pursue decarbonization. taxes for imports into countries implementing CBAM. Also, CBAM could potentially increase the Company’s risk exposure due to decreased market access. d) Beyond 2030, we will intensify the deployment of emerging technologies and expand our renewable energy capacities. These efforts will propel us towards becoming a net-zero carbon business by FY 2050. Workplace Health Maintaining a safe work environment is a top priority for our company. Unsafe conditions lead to Risk We have implemented processes and checks to identify and mitigate hazards. Our employees undergo rigorous & Safety absences, loss of productive hours as well risk of reputation loss. To ensure the well-being of training to understand the risks associated with their work. The Safety Community of Practice oversees the our workforce, we prioritize creating a safe workplace that promotes their health and safeguards implementation of these measures throughout our organization. their overall well-being. This commitment is fundamental for our organizational growth and the positive impact we can make on society. In FY 2023, the company reported 13 fatal incidents. Our safety framework is comprehensive and includes 17 safety performance standards and 20 health and safety technical and management standards. To validate our commitment, all our operational facilities and sites have By prioritizing health and safety, we build trust with our employees and other stakeholders. A obtained prestigious certifications such as ISO 45001 and OHSAS 18001. strong health and safety record demonstrates our responsibility as an employer and showcases our caring nature. This enhances our reputation in the industry and positions us as an employer We have also initiated a Critical Risk Management program aimed at identifying and prioritizing critical risks, of choice. Consequently, we can attract and retain talented employees who value their allowing us to focus our efforts on effectively managing and mitigating them. Furthermore, we are currently in the well-being. process of overhauling our safety standards under the VSF initiative, ensuring continuous improvement and alignment with the best practices in the industry. Water Water is a critical input for Vedanta’s operations and has the potential to disrupt operations, to Risk Vedanta has comprehensive water management strategy in place at operations to ensure that fair allocation of Management impact productivity of staff as well as to impact revenues and logistics. With operations in both water is maintained for key municipal, agricultural and industrial users in the regions where the Company operate water-stressed areas and areas prone to flooding, change in water availability is a material risk in. Vedanta has undertaken significant initiatives to progress towards becoming water positive: for businesses like BALCO, HZL and Cairn Oil and Gas. a) Site-specific roadmaps are being developed, which involve identifying projects both within and outside the There could be water-related stakeholder conflicts, due to which, availability and accessibility of Company’s premises to improve the Company’s water positivity ratio. Four sites have attained water-positive the water with required quality for our operations and stakeholders will be impacted. These status (HZL, IOB, Cairn India and BMM). impacts can result in: b) To reduce freshwater usage, the Company is banking on technology deployment across our sites for process improvement and recycling of wastewater. a) Decrease in the capacity utilisation of operation resulting in productivity losses c) As part of their integrated watershed management initiatives (IWMI), the Company is creating rainwater b) Legal conflicts resulting in loss of credibility and reputation of the Company. harvesting and groundwater recharging projects for communities to improve freshwater availability. c) Higher financial burdens and increase in specific water cost of product due to high degree of pre-treatment if quality is the issue and handling, storage issues if availability is the cause of the conflict. 30