Sustainability at Hindustan Zinc

Being Responsible to Become More Sustainable

Hindustan Zinc’s value proposition is driven by its continuous efforts towards the realisation of its Sustainability Goals 2025. We remain dedicated to delivering responsible growth to all our stakeholders, with a focus on their long-term sustainable development. It is our consistent endeavour to surge progressively forward on all the key metrics of Environmental, Social and Governance (ESG) through strategic interventions and initiatives designed to promote decarbonisation, resource efficiency, circular economy, water stewardship, efficient waste management, biodiversity conservation and minimisation of our environmental footprint.

A small bird perched on a tree branch surrounded by green leaves.

Our sustainability journey is guided by the principle of ‘ZERO HARM, ZERO WASTE, ZERO DISCHARGE’, and is aligned to the highest national and international standards, and the United Nations Sustainable Development Goals (UN SDGs). It is propelled by the aim of ensuring holistic stakeholder value creation, encompassing all our stakeholder groups, with a particular focus on environmental, community and customer growth.

Our strategic priorities are as follows

Be the ESG leader

We are continuously investing in the industry-leading initiatives to drive inclusive and sustainable development

Go beyond resilience

We believe not just in staying resilient in the phase of challenges but in going beyond, through game- changing innovations and technological interventions

Creating value for our stakeholders

We are focussed on creating sustained, long-term value for all our stakeholders through targeted initiatives, aligned to their expectations and aspirations

During the financial year, we diligently worked on all the three pillars of ESG, demonstrating our dedication to sustainability and responsible business practices. Our key accomplishments included achievement of zero fatalities and promotion of circularity through the commissioning of a fumer plant. We made significant progress towards nurturing diversity by welcoming 16 LGBTQ+ members, and transitioning towards decarbonised operations with the introduction of low-carbon solutions for both operation and logistics. Installing a zero liquid discharge (ZLD) plant and dry tailing plant, fostering a sustainable supply chain, and actively engaging in biodiversity conservation efforts marked other notable milestones in our ESG journey. We remain optimistic about the transformative impact of our business as we forge ahead toward a thriving, equitable and resilient future for all.

Pradeep Singh

Chief HSE & Sustainability Officer

COMPREHENSIVE MANAGEMENT SYSTEM

We ensure that all operational sites have valid certificates in accordance with the ISO 14001 environmental management system, ISO 45001 occupational health and safety management system, and ISO 50001 energy management system. During the year, all operational sites were benchmarked to these standards. In addition, all site management systems are aligned with the ISO 9001 system for quality management.

VEDANTA SUSTAINABILITY FRAMEWORK (VSF)

We follow the same policies and sustainability standards as laid down by our parent company, Vedanta Ltd. Our robust Sustainable Development Framework includes a suite of sustainability policies, standards and guidance notes, which steer our operational and social excellence, advancing business outcomes as well as the communities and environment where we operate. In line with the same, we educate, train and develop our employees and business partners in the framework, ensuring unfailing adherence to world-class sustainability standards, processes and practices.

VEDANTA SUSTAINABILITY ASSURANCE PROGRAMME (VSAP)

VSAP is our sustainability assurance tool, which we use to assess our compliance with the Vedanta Sustainability Standards requirements. It includes a programme of formal third-party audits to ensure framework compliance across 13 elements.

VSAP elements

Compliance

Leadership

Objectives, Targets & Performance

HSE Management

Competency & Training

New Projects

Process Safety & Management of Change

Incident Investigation

Assessment and Continual Improvement

Supplier & Contractor Management

Social Sustainability & Stakeholder Engagement

Resource Use Management

Occupational Health

Over the past 15 years, I’ve undergone a transformative journey at Hindustan Zinc, advancing from a junior executive to Deputy Head of Sustainability. The company has offered invaluable growth opportunities, especially in ESG (Environmental, Social, and Governance) initiatives. Emphasising Diversity and Inclusion, Hindustan Zinc cultivates an environment ripe with advancement prospects for emerging professionals.

Shama Jain

Deputy Head - Sustainability HZL

VSAP is an annual process with clear tracking of results by the Sustainability Committee and the Executive Committee, which in turn report to the Board. On the basis of the identified improvement areas, respective units make management plans and undertake corrective actions, which are periodically reviewed, evaluated and documented.

As a responsible corporate, we have consciously extended our sustainability culture to our customers, a key stakeholder for Hindustan Zinc. We have built our customer service proposition around our wide portfolio of products and transparent disclosure of the environmental impact of our products.

We use the Life Cycle Assessment (LCA) methodology in the environment product declaration (EPD)

EPD is an independently verified and registered document that provides objective, transparent, comparable, and third-party verified data about the life-cycle environmental impact of products
LCA provides a holistic approach for measuring the environmental performance of zinc products by considering the potential impact from each stage of manufacturing, product use, and end-of-life

We have published EPD for our zinc product, underlining our strong commitment to sustainability, transparency and minimising our environmental footprint
Our EPD is comparable with EPDs from other manufacturers around the world, as it complies with ISO 14025:2006 and EN 15804:2012+A2:2019 standards
The LCA study conducted for the development of EPD for our zinc products was benchmarked to the highest standards of ISO 14040 and ISO 14044

Group of Hindustan Zinc miners standing at the entrance of Purvanchal Adits, showcasing their teamwork and safety gear.

SBTi VALIDATES HINDUSTAN ZINC’S NEAR-TERM & LONG-TERM NET-ZERO TARGETS

During FY 2023-24, Hindustan Zinc became the first metal and mining company in India to have validated Science Based Targets in line with 1.5^oC, with approved targets of 50% reduction in scope 1 & 2 and 25% reduction in scope 3 GHG emissions by 2030, and net zero by 2050 from base year 2020.
Science Based Targets for Nature (SBTN) has established a pilot group of 17 companies that are planning to set nature targets in 2024. Hindustan Zinc is among the initial group of 17 companies, and the only mining company globally to be part of this initiative. The purpose of this pilot is to ensure a robust, feasible and clear process for companies to set targets before the full roll- out, expected in 2024.

ROBUST SUSTAINABILITY GOVERNANCE FRAMEWORK

The topic of sustainability is discussed at all Board and management meetings, as well as at the business unit (BU) management meetings.

To effectively steer our sustainability journey, we have in place a robust sustainability governance framework.

The three-tiered framework is headed by a Sustainability Committee at each level
It guides us in organising our thoughts and ideas, undertaking informed planning, evaluating our ESG activities, and ensuring accountability on all ESG related issues
It aids us in defining our short-term and long-term goals, and in systematically monitoring our performance across the organisation, in harmony with our sustainability principles

TIER 1

Oversight of ESG matters

Sustainability and ESG Committee of the Board

TIER 2

Setting goals; provide resources; track progress and support in implementation

Sustainability Committee at Executive Level

TIER 3

Implementation of project

SBU ESG Committee

A bird flying with an industrial structure in the background, illustrating the coexistence of nature and industry.

TIER 1 - Sustainability and ESG Committee of the Board

Hindustan Zinc has a separate four-member Sustainability and ESG Committee at the Board level. The committee, which holds half-yearly meetings, is leading our sustainability efforts and proactively driving our ESG journey.

THE MANDATE

The Committee helps the Board in fulfilling its ESG-related responsibilities and ensuring strong governance for sustainability
It enables the Company to make continuous improvements in its sustainability performance, and to effectively implement the various processes and policies needed for the same
It guides and reviews the sustainability strategy, and long-term goals and targets at Hindustan Zinc
It plays a pivotal role in business decisions related to workplace safety and elimination of environmental footprint
It contributes to strengthening the Company’s commitment towards its stakeholders, and its reputation as a leader in the sustainable metal and mining sector

Committee Composition

MR. AKHILESH JOSHI

Non-Executive Independent Director - Chairperson

MR. ARUN MISRA

Executive Director - Member

MS. NIRUPAMA KOTRU

Non-Executive Nominee Director - Member

MS. VEENA KUMARI DERMAL

Non-Executive Nominee Director - Member

TIER 2 - Sustainability Committee at Executive Level

Our Executive Sustainability Committee is chaired by the Chief Executive Officer (CEO) and includes all the Executive Committee members and chairmen of our 10 communities. It undertakes monthly review of our progress on the Sustainability Goals 2025.

THE MANDATE

It is tasked with formulation of the Company’s sustainability strategy, and setting of its long-term goals and targets
It continuously tracks the status of projects identified to meet the sustainability goals, along with the progress against all goals
It guides the strategic allocation of resources for achievement of the Sustainability Goals 2025

Sustainability Communities

Energy and Carbon Community

Waste to Wealth Community

Biodiversity Community

Water Management Community

Central Occupational Health & Safety Council

People Community

Corporate Social Responsibility (CSR) Community

Supply Chain Community

Communication Community

Finance Community

TIER 3 - SBU ESG Committee

Each of our strategic business units (SBUs) has an SBU ESG Committee to ensure the implementation of sustainability practices relating to ESG aspects.

THE MANDATE

The Committee works as per the guidance provided by the committees at the above two tiers for the accomplishment of the Sustainability Goals 2025
It ensures continuous identification and monitoring of risks arising at the location
It assesses the risk impact and formulates appropriate mitigation efforts to minimise or eliminate the risk and meeting the requirement of Sustainability Goals 2025

Climate Change

0.5 mn tCO₂e greenhouse gas (GHG) emission savings in our operations from the base year 2017

Progress Status

0.40 mn tCO₂e GHG emission savings achieved from base year 2017

Water Stewardship

Become 5x water positive company and achieve 25% reduction in freshwater consumption

Progress Status

8.67% reduction in freshwater withdrawal achieved from base year 2020

Circular Economy

3x increase in gainful utilisation of smelting process waste

Progress Status

1.67x increase in gainful utilisation of smelting process waste (2.55 lakhs MT)

Biodiversity Conservation

Protect and enhance biodiversity throughout the life cycle

Progress Status

Restoration of the habitat, with 0.67 mn trees planted (from base year 2020)
IUCN Progress - Primary data collection for 3 seasons including impact assessment completed