Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Climate Change
• Electric Vehicles (EVs)
• Environmental Stewardship
• Social Responsibility
• Employee Well-being
• Supply Chain Management

Environmental Achievements

• Generated 21.24 MW of power from renewable sources (solar and wind)
• Undertook ecological restoration of the Kham river (1.5 km)
• Planted 19,851 saplings

Social Achievements

• Spent ₹48.37 million on CSR activities
• Implemented Learn and Earn Scheme at Varroc Academy, benefiting 211 youth
• Sponsored 3 athletes who won 14 international medals

Governance Achievements

• Established a robust risk management framework
• Implemented a Whistle Blower Policy
• Complied with Secretarial Standards issued by the Institute of Company Secretaries of India

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on supply and demand
• Semiconductor shortages
• Higher fuel prices and commodity inflation
• Geo-political issues (Russia-Ukraine conflict)

Mitigation Strategies

• Divestment of 4-wheeler lighting business in Europe & Americas
• Focus on growth and margin improvements in key business units
• Investment in R&D to expand product portfolio
• Digitalisation and automation to strengthen manufacturing capabilities
• Strengthening supply chain management

Supply Chain Management

Responsible Procurement

• Long Term Strategic (LTS) Suppliers
• Collaboration with suppliers on new technologies

Climate-Related Risks & Opportunities

Opportunities

• Growth in EV components

Sustainable Products & Innovation

• EV components
• Light weighting solutions
• Metal to Plastic conversion products

Awards & Recognition

• Platinum Winner at CII National POKA YOKE Competition
• Silver Award at CII National Kaizen Competition
• Platinum Award at CII National POKA YOKE competition
• Award for Excellence in CSR at Machinist Super Shopfloor Awards 2021
• ACMA award for DIPL in New Product Design and Development
• Economic Times Polymer Awards 2022
• 2nd HR Best Practices Competition at ACMA WR Jury Champion 2021
• Award in POKA YOKE Competition at TPM Champions Trophy 2021
• Certificate of merit for achieving “Zero Accident Frequency”
• Times Green Award for Kham River Restoration Project

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• 8% y-o-y reduction in CO2 emissions
• 2% y-o-y decrease in energy consumption
• Scope-1 emission reduced by 168 KT in FY23
• Implemented Zero Liquid Discharge (ZLD) mechanism at various plant locations
• Wastewater treatment system for reuse of treated water
• 100% LED lighting at >10,000 plant locations
• Planted >10,000 trees till FY23

Social Achievements

• Launched 'HR Connect' initiative for shop floor employee concerns
• Implemented HRMS solutions for workforce life cycle management
• 100% COVID-19 vaccination for all staff
• Telemedicine program for remote health examinations
• Various health awareness initiatives held at shop floors
• 91.53% Employee retention rate
• 126 Training programmes held in FY23

Governance Achievements

• Implemented SAP S/4 HANA and SAP Ariba for operational efficiency
• Robust risk management framework in place
• Dedicated Risk Management Committee
• Active involvement of Audit Committee and the Board in risk management

Climate Goals & Targets

Environmental Challenges

• Cyclicality of the steel industry
• Regulatory risk related to mining activities
• Highly competitive industry
• Raw material sourcing costs
• Economic uncertainty
• Cheap imports
• Technological advancements
• Infrastructure bottlenecks

Mitigation Strategies

• Integrated operations with full self-sufficiency in captive iron ore
• Zero-waste mining technology
• Sustained reduction in financial leverage
• Cost reduction initiatives
• Price negotiations with customers
• Sourcing cheaper raw materials
• Implementation of TPM
• Investment in new technologies

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier code of conduct
• Sustainable sourcing practices

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Policy changes, regulations, shifts in consumer preferences

Opportunities

• Implementing energy-efficient technologies and practices

Reporting Standards

Frameworks Used: NGRBC

Certifications: ISO 14001:2015, ISO 9001:2015, ISO 45001:2018, IATF 16949:2016

Third-party Assurance: CareEdge Advisory

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Great Place to Work – Certified consecutively for second year in FY23
• Five-star rating award from Ministry of Mines for Metabodeli Iron Ore mine
• Awards from Quality Circle Forum of India (QCFI) and National Convention on Quality Concept (NCQC)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Stewardship
• Circular Economy
• Biodiversity Conservation
• Health, Safety & Well-being
• Community Engagement & Development
• Talent Attraction & Retention
• Diversity, Equal Opportunity & Inclusion
• Responsible Sourcing
• Business Ethics & Corporate Governance

Environmental Achievements

• Became the first Indian metal and mining company with validated Science Based Targets, aiming for net zero by 2050.
• Inaugurated phase 1 of 4,000 KLD zero liquid discharge (ZLD) plant at Zawar Mines.
• Deployment of 10 electric vehicle (EV) trucks for inter-unit transportation.
• Signed MoU for 180 liquified natural gas (LNG) vehicles for inter-unit and finished good movement, of which 41 LNG vehicles have already been deployed during the year.
• Commissioning of India’s first fumer at Rampura Agucha mines.
• Rampura Agucha mines and Zawar mines became India’s 1st mines to be GreenCo certified.
• Launched first Nature Related financial disclosure (TNFD) report in India.
• Implemented digitisation project v-Unified (ENABLON) to manage ESG KPIs through technological tools.
• 14% reduction in the intensity of greenhouse gas emissions over the past four years.
• 8.67% reduction in freshwater usage from FY 2019-20.
• 6.32 mn MT of waste recycled.
• 18.41 mn m³ of water recycled.

Social Achievements

• CSR contribution of ` 269 crore.
• 1.91+ mn CSR beneficiaries.
• 16,633 employment created.
• 21.7% women representation.
• 122,107 hours of learning and development.
• ZERO fatality.
• India’s 1st ever all women Integrated underground mine rescue team.
• Integrated 16 LGBTQA+ individuals into the workforce.

Governance Achievements

• Collaborated with over 600 active suppliers and service partners. 73% of total supplier by value have been assessed by third party for ESG criteria.
• Gross income ` 33,221 crore.
• Taxes ` 10,273 crore.
• Dividend ` 5,493 crore.
• Implemented ARIBA SLP for efficient supplier profile and data management.
• Integrated ESG and quality assessments into the vendor onboarding process.
• Established a vendor grievance portal.

Climate Goals & Targets

Environmental Challenges

• Potential water scarcity
• Potential non-compliance in non-GHG emissions
• Risks associated with physical changes in climate matters
• Potential tailings dam seepage and breach
• Risk of fire, fall of ground, accidents and fatalities, structural collapses
• Rising community unrest
• Disruptions in operations due to higher expectations from labour union
• Risks of data loss, vulnerability of IT infrastructure

Mitigation Strategies

• Complete transition from wet tailings to dry tailings disposal by 2025
• Become 5x water-positive company and achieve 25% reduction in freshwater by 2025
• 17% reduction in non-GHG emissions (SOx and NOx emissions) by 2025
• Achieving Net Zero emissions by 2050 or sooner
• Zero work-related fatalities and 50% reduction in Total Recordable Injury Frequency Rate (TRIFR) by 2025
• Positively impacting 1 mn lives through social, economic and environmental initiatives by 2025
• Inclusive and diverse workplace with 30% diversity by 2025
• Risk Management framework is being reviewed and updated under Project Pragya

Supply Chain Management

Supplier Audits: 309 suppliers assessed by third party for ESG criteria

Responsible Procurement

• Supplier Code of Conduct
• ESG Qualification questionnaire
• ARIBA Supplier Lifecycle and Performance (SLP) module
• ESG-based scoring
• Product Level LCA & Carbon Pricing

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Droughts
• Heat waves

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Renewable energy deployment

Reporting Standards

Frameworks Used: GRI Standards, GRI 14: Mining Sector Standard, UNGC, FIMI, ICMM Sustainable Development Framework, UN Sustainable Development Goals (SDGs), CEO Water Mandate, UNGC Women Empowerment Principles, IFRS S1, SBTi

Certifications: ISO 9001, ISO 31000, ISO 14001, ISO 37301, ISO 50001, ISO 27001, ISO 45001, ISO 22301, SA8000 (66% units)

Third-party Assurance: Mazars Advisory LLP

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• EcoZen, Asia’s first low carbon ‘green’ zinc

Awards & Recognition

• Ranked 1st globally in the S&P Global Corporate Sustainability Assessment (CSA) 2023
• Won the large industry category in the 2nd FICCI Sustainable Industry Practice Awards
• Featured among the top 1% in the S&P Global CSA Sustainability Yearbook 2024 for the 7th consecutive time
• Achieved global recognition by CDP with a Leadership Band (A-) for climate change and water security efforts
• Won the Mission Energy Foundation Award for efficient fly ash management
• 7 business units of Hindustan Zinc recognised by British Safety Council at International Safety Awards 2024

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• 14% absolute reduction in Scope 1 & 2 emissions from previous financial year
• 6% absolute reduction in Scope 3 emissions from previous financial year
• 7% reduction in fresh water intensity from previous financial year
• 48% of total energy consumption is from renewable sources
• Water positive company (Since FY2023)

Social Achievements

• 100% of our permanent employees and workers are covered under health and accident insurance, and maternity and paternity benefits
• 99.1% return to work rate and 83.6% retention rate for our permanent employees post parental leave
• 92% employees and 99.2% workers were provided skill upgradation training
• Positively impacted 496,618 individuals through CSR initiatives

Governance Achievements

• No disciplinary action against Directors/KMPs/Employees/Workers by any law enforcement agencies for charges of bribery/corruption
• Sustainability and CSR Committee act as nodal Committee for ESG related matters
• 36.4% of Board members are women directors

Climate Goals & Targets

Environmental Challenges

• Regulatory compliance
• Pharmacovigilance (PV)
• Water Management
• Waste Management
• Energy and emissions management
• Talent attraction and retention
• Combating counterfeit medicines
• Business continuity
• Business ethics/bribery and corruption
• Geopolitical risk
• Data security, data privacy, and cybersecurity
• Supply chain
• Product development

Mitigation Strategies

• Robust quality processes and systems
• Mature system to monitor benefit-risk profile of products
• Water management strategy involving water efficiency, alternative sources, and creating freshwater potential
• Waste management systems at all facilities
• Decarbonisation strategy focusing on energy mix, conservation, and renewable sources
• Analytics to measure employee performance and address skill gaps
• Comprehensive measures including DSCSA implementation and serialisation
• ERM and assurance functions to identify key risks
• Code of Business Conduct and Ethics (COBE) and Anti-Bribery and Anti-Corruption policies
• Monitoring geopolitical developments and mitigating exposure
• ISMS based on ISO 27001 and NIST Cybersecurity Framework
• Active management of third-party relationships and diverse supplier base
• Upskilling workforce and adopting new technologies

Supply Chain Management

Supplier Audits: 25.5% of value chain partners (India direct spend) evaluated on ESG parameters

Responsible Procurement

• Supplier Code of Conduct with sustainability requirements
• ESG assessment for strategic suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards 2021, UN SDGs, NGRBC

Certifications: ISO 14001, ISO 45001, SA8000

Third-party Assurance: DNV Business Assurance India Private Limited

Awards & Recognition

• National Award for the Empowerment of Persons with Disabilities