• Intuitive Vedanta Metal Bazaar online platform for continuous engagement and feedback
• Periodic connects with key customers by senior executives and top management

• Biennial customer satisfaction survey
• Forum for quick customer query resolution
• ‘Voice of customers’ workshops chaired by CEO & CFO to understand their concerns and feedback

Key considerations during the year

Demand for zinc alloys

Hindustan Zinc’s response

In addition to meeting customer needs, Hindustan Zinc’s commitment lies in product diversification and enhancing its market competitiveness. In response to customer demand, Hindustan Zinc has significantly expanded its value-added product (VAP) production. In FY 2023-24, the Company augmented its VAP portfolio by 34 kt, reaching a total of 161 kt.

Increased demand for primary zinc

Indian primary zinc market has grown by 20% y-o-y to 773 kt in FY 2023-24. Hindustan Zinc has focussed on, and catered more to, the domestic market. The Company has supplied 71% of its total zinc sales to India, which is 12% higher than previous year.

Focus on digitalisation

Hindustan Zinc has implemented live vehicle tracking for material shipments, optimising the logistics efficiency. It has streamlined digital operations through introduction of mobile app for easy access to Vendor Management Portal (VMB). It has further enhanced customer experience through solutions like e-negotiation for fair pricing, buyer registration with digital KYC, and customer dashboard with contract status and market analytics, etc.

• CSR initiatives, events and interventions
• Robust grievance mechanism through strategic Social Performance Committees
• Leadership community connect and community meetings

• Third-party assessments - Impact assessment survey and perception studies
• Communication via newsletters, leaflets, hoardings, print and social media, etc.

Key considerations during the year

Third-party assessments showed that community asset creation is of high need for the community

Hindustan Zinc’s response

Taking this aspect into consideration, Hindustan Zinc further strengthened its community asset creation programme. Investments increased 2.31 times from FY 2022-23 to FY 2023-24. Focus was on holistic development of the amenities within the community with model village concept. We were thus able to reach out to 51 villages, benefitting more than 2.5 lakhs population.

• Contract negotiations, supplier Code of Conduct, policies & standards
• Regular supplier meetings and site visits
• Vendor due diligence and pre-qualification meetings
• On-site quality audits of critical suppliers
• Supplier sustainability desktop assessment

• ROBOS portal for supplier grievance
• Helpdesk for speedy resolution of supplier query
• Webinars for supplier engagement
• Tracking business partner (BP) suggestions for possible implementation
• Focussed discussion on ESG goal alignment with critical supplier

Key considerations during the year

Climate Change & Decarbonisation

Hindustan Zinc’s response

We have deployed electric vehicles for inter-unit transport, which will help us reduce our scope 3 emissions and is in line with our SBTi targets.

We have adopted integrated product level lifecycle assessment (LCA) and carbon pricing for critical commodities & machinery procurement for scope 3 emission reduction. We have also incorporated ESG assessment & qualification into the supplier onboarding process, fostering business partner collaboration & awareness.

Transparency in Governance, Ethics & Integrity

We have undertaken a process to re-register all suppliers in ARIBA supplier lifecycle and performance (SLP). This initiative involves verifying and updating supplier information to ensure accuracy and completeness. By doing so, we aim to maintain transparency in our supplier database, enhance data quality, and strengthen our supplier relationships. We have launched a supplier portal to inform suppliers about the Company’s procurement activities, enhancing governance transparency.

Risk Management & Control

Over the past three years, we have conducted third-party assessments of more than 600 value chain partners, thus evaluating various factors, such as financial stability, operational capacity, compliance with regulations, and adherence to ethical and sustainability standards. By performing these assessments, we aim to mitigate risks and ensure that our critical suppliers are capable of supporting our operations effectively, thereby safeguarding business continuity.

Human Rights

We deliver human rights training to all business partners and their employees to raise awareness about human rights issues, including modern slavery, and ensure compliance with regulations regarding minimum and maximum working hours as stipulated in the Factories Act and Mines Act.

• Advocacy on favourable policy matters through panel discussions, technical representations with various trade and industry associations, state/central mines departments and MOEFCC, etc.
• Regular engagement with various regulators, local administration, inspection bodies, industry associations, etc.

• Partnerships in the Government’s social welfare programmes through active participation and sponsorships
• Regulatory, legal compliances and reporting

Key considerations during the year

Statutory approvals for mining lease & smelters

Hindustan Zinc’s response

Hindustan Zinc ensures regular discussions and follow-ups with the concerned authorities, sending representations through Government departments at appropriate levels. The Company is focussed towards commencement/sustenance of mining operations to enhance production, ensuring revenue generation to Government and employment for local people.

Disinvestment of Hindustan Zinc

Non-deal roadshows by DIPAM (Department of Investment and Public Asset Management) along with Hindustan Zinc’s management concluded. The Company maintains regular dialogue with the Government, extending complete collaboration.

Impact of Gazette notification from Ministries including Ministry of Mines, Ministry of Environment, Forest and Climate Change, Ministry of Labour and Employment

Hindustan Zinc honours the notifications issued by the Government and takes due measures for ensuring uninterrupted operations.

• Annual General Shareholder Meetings, quarterly financial results declaration and earnings call with senior management
• Investor relations events, one-on-one investor meetings, investor conferences, non-deal roadshows

• Disclosure tools, including Annual Reports, Sustainability Reports, Business Responsibility and Sustainability Reports, Tax Transparency Reports and Investor Presentations
• Complaints and grievance management

Key considerations during the year

Financial performance and shareholder returns

Hindustan Zinc’s response

Hindustan Zinc’s strategic focus is on delivering superior industry-leading returns to our investors. The overarching pillars of stringent cost control and strong operational efficiencies ensure the delivery of robust margins and healthy cash flows even in a volatile economic environment.

Resilience to macro-economic and geopolitical factors

During the year, the impact of lower zinc LME was partly offset by consistent cost optimisation and operational efficiencies, thereby maintaining strong margins.

The Company’s management has an agile decision-making and a proactive approach, which ensures sustainable growth and robust performance. In FY 2023-24, the management adopted silver maximisation strategy by leveraging the technologies, providing flexibility of running operations, which resulted in increased benefits from silver prices to our investors and the business.

Corporate footprint, sustainability performance and ESG issues

Sustainability is a key priority for Hindustan Zinc. We have in place a wellarticulated ESG roadmap for the execution of our overall strategic vision and plans of achieving net zero emissions by 2050.

The Company plans to source over 50% of its overall power requirements through its 450 MW renewable energy power deliver agreement, the first flow of which had commenced in May 2024. We have deployed India’s first underground battery electric vehicle and have plans to convert all our diesel-run mining vehicles into battery-operated vehicles.

The Company is also strongly focussed on the concepts of circular economy and waste management and has been progressing well towards the same. During the year, Hindustan Zinc commissioned India’s first fumer facility for reducing the smelter waste generation and recovering additional metals. The Company has also partnered with technical and innovative partners to recover residual metal from tailings and jarofix.

• Emails as an official and transparent communication medium
• Mentorship programmes for new hires with senior leaders
• Sampark townhall meetings with the CEO, location townhall with location heads and pulse checks by HR teams
• Flyers to communicate behavioural, motivational and other aspects, promoting a positive work environment

• Focus group discussions by leaders and one-on-one discussions with managers
• Grievance handling portals and company website
• Company website for significant communication
• In-person family gatherings during festivals and events to enhance a positive atmosphere and develop a healthy community
• Awareness of employee benefit policies via regular connects
• Annual employee surveys (internal and external)

Key considerations during the year

Employee Feedback Mechanism

Hindustan Zinc’s response

Year-round surveys are conducted to check the pulse of the organisation. During the year, Kincentric Award Survey, in-house Employee Satisfaction Survey and new hires onboarding experience feedback were undertaken to gauge the overall satisfaction, engagement, and well-being of the employees. These provided us with valuable insights, and helped to identify the areas of improvements for making data-driven decisions to enhance employee experience. Our business partners and workmen are also covered under the feedback mechanism.

Embracing Parenthood

Our Progressive Parenthood & Childcare Policy emphasises on the principles of inclusiveness, diversity, equity and belongingness. This is done through various initiatives like sabbatical leaves, adoption leaves, paternity leaves, flexible working hours, etc.

Diversity, Equity and Inclusion

Hindustan Zinc’s proactive efforts in fostering a culture of inclusion and respect included a “No Questions Asked” monthly work-from-home day for women executives to support their physical and mental health. We also launched the gender reaffirmation leaves policy, providing financial support & medical reimbursement as per mediclaim policy of up to ₹ 2 lakhs for gender reaffirmation surgery. We organised interactive sessions to honour and celebravte the LGBTQ+ community.

• CSR initiatives and review meetings
• Events at the field and community meetings
• Robust grievance mechanism through strategic Social Performance Committees
• Capacity-building programmes and stakeholder meetings

• Third-party assessments - Impact assessment survey and perception studies
• Communication via email, notice boards, websites, newsletters, leaflets, social, print and electronic media, etc.
• Review & Governance mechanisms

Key considerations during the year

Capacity-building workshops within the area in which the development organisations are working

Hindustan Zinc’s response

Within every programme, we have developed a mechanism for capacity building of every personnel to enhance the skillsets of the team.

Development sectors are keen to share the effects on the ground by the corporates towards environment & society

We have captured their thoughts through impact materiality assessment covering various sustainability matters.