Taskforce on Nature-related Financial Disclosures (TNFD) Report
2023-24
TNFD Report for Hindustan Zinc Ltd
Table of Contents
04 | About the | 06 | Message from | 07 | Message |
Report | Chairperson | from CEO |
11 | TNFD General | 15 Governance | 19 Strategy |
Requirements |
39 | Risk and Impact | 42 | Metrics and | 45 | Way |
Management | Targets | Forward |
List of Tables
Table 1: List of Hindustan Zinc Limited operational units along with locations | 12 |
and IUCN Biomes Typology | |
Table 2: Metal And Mining Sector Dependency on Selected Ecosystem Services | 20 |
(A screening result of ENCORE tool) | |
Table 3: Metal And Mining Sector Impact on Selected Ecosystem Services (A screening result | 21 |
of ENCORE tool) | |
Table 4: Dependency of Metal And Mining Sector (A screening result of Biodiversity Risk Filter) | 21 |
Table 5: Impact of Metal And Mining Sector (A screening result of Biodiversity Risk Filter) | 22 |
Table 6: Dependencies of Hindustan Zinc Limited Business Operations on Provisioning Ecosystem | 23 |
Services (Assessed through Ecosystem Services Review) | |
Table 7: Dependencies of Hindustan Zinc Limited Business Operations on Regulating & Cultural | 24 |
Ecosystem Services (Assessed through Ecosystem Services Review) | |
TNFD Report for Hindustan Zinc Ltd
Table 8: Impacts of Hindustan Zinc Limited Business Operations on Provisioning Ecosystem Services | 24 |
(Assessed through Ecosystem Services Review) | |
Table 9: Impacts of Hindustan Zinc Limited Business Operations on Regulating & Cultural Ecosystem | 25 |
Services (Assessed through Ecosystem Services Review) | |
Table 10: Summary of Sites With High/Medium Dependencies and Impacts (Assessed through | 25 |
Ecosystem Services Review) | |
Table 11: Site specific Physical and Transition Risk based on the Ecosystem Services Review | 26 |
Table 12: Site specific Opportunities for Sustainability Performance based on the Ecosystem | 33 |
Services Review | |
Table 13: Number of Critical Suppliers Under Different Risk Level | 36 |
Table 14. Hindustan Zinc Limited's Actions in accordance to the mitigation hierarchy | 37 |
Table 15: Sensitivity of Hindustan Zinc Limited Business Operations | 38 |
Table 16: Physical Risks and Transition Risk Assessment | 42 |
Table 17: Nature related Opportunities Assessment | 42 |
Table 18: Hindustan Zinc Limited's Sustainability Targets for Nature Realms | 43 |
Table 19: Hindustan Zinc Limited's disclosure data against TNFD core global disclosure | 43 |
indicators and metrics | |
List of Figures
Figure 1: Biodiversity Policy of Hindustan Zinc Limited | 10 |
Figure 2: Scope of Business Value chain covered in the report | 11 |
Figure 3: Spatial Distribution of Hindustan Zinc Limited's Operations over | 13 |
Biogeographic Zones of India | |
Figure 4: Governance Structure of Hindustan Zinc Limited | 16 |
Figure 5: Sustainability Communities in Hindustan Zinc Limited | 17 |
TNFD Report for Hindustan Zinc Ltd | TNFD Report for Hindustan Zinc Ltd |
About the Report
Task Force on Nature Related Financial Disclosures (TNFD) report is for Hindustan Zinc Limited, a Vedanta Group Company. All data in this report is as of March 31, 2024.
The TNFD recommendations, launched in September 2023, is a globally endorsed initiative, combining market insights, scientific rigor, and governmental support to integrate nature considerations into decision-making processes for companies. Like Taskforce on Climate- related Financial Disclosures (TCFD), TNFD recommendations have four content pillars: (i) Governance; (ii) Strategy; (iii) Risk & Impact Management; and (iv) Metrics & Targets; encompassing 14 disclosures, addressing nature-related Dependencies, Impacts, Risks, and Opportunities (DIRO). These recommendations establish a robust risk management and disclosure framework applicable to entities of all sizes, facilitating the identification, assessment, and management of nature-related issues, with appropriate disclosure where applicable . Additionally, TNFD has also published sector specific guidance for metals and mining (draft).
This TNFD report provides the details of the Nature- related Dependencies, Impacts, Risks and Opportunities of Hindustan Zinc Limited. TNFD recommended Locate, Evaluate, Assess and Prepare (LEAP) framework is used by Hindustan Zinc Limited for assessment of their Direct Operations and Upstream Critical Supply chain. This report also provides the Nature related Risk (Physical and Transition) at both business level as well as operational sites level. Site level opportunities are identified and reported for enhancement of biodiversity and shall also be included in the site level Biodiversity Management Plans (BMPs).
At the end, this TNFD report provides the metrics and targets adopted by Hindustan Zinc
Limited to measure the progress in coming years.
1 Recommendations of the Taskforce on Nature-related Financial Disclosures (2023). | |
Photo credit: IUCN/Mridul Vaibhav | https://tnfd.global/wp-content/uploads/2023/08/Recommendations_of_the_Taskforce_on_Nature-related_ |
Financial_Disclosures_September_2023.pdf?v=1695118661 |
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TNFD Report for Hindustan Zinc Ltd
Message from Chairperson
Dear All,
At Hindustan Zinc, our work is deeply rooted in our commitment to sustainability. We understand that our operations are part of a larger ecosystem and we must make every effort to ensure that progress does not forsake sustainability. It is with this understanding that we have embarked upon a mission to embrace a Nature Positive future.
We are launching our first Taskforce on Nature-Related Financial Disclosures (TNFD) report a testament to our unwavering commitment to preserving and enhancing nature. It reflects our relentless efforts to assess, disclose, and mitigate nature-related risks, aligning seamlessly with global policy goals outlined in the Target 15 of Kunming-Montreal Global Biodiversity Framework.
As you go through this report, I encourage each one of you to recognize it as a call to action demanding our best efforts towards nature conservation. This report symbolizes the dedication, innovation, and resilience with which we undertake the ambitious goals that will lead us to our Net Zero Target by 2050 or sooner.
Let us pledge to protect and cherish our planet. Together, we can create a future where sustainability is not just a goal but a way of life. Let us once again renew our commitment towards leaving behind a world that is healthier, greener, and more vibrant for our future generations.
Best Wishes,
Priya Agarwal Hebbar
Chairperson - Hindustan Zinc Limited
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TNFD Report for Hindustan Zinc Ltd
Message from CEO
Dear All,
I am thrilled to share a significant milestone in our journey towards sustainability with the launch of Hindustan Zinc Limited's first TNFD Report.
As we navigate the challenges posed by climate change, biodiversity loss, and the degradation of nature, it has become increasingly evident that these issues are not only environmental but also critical to the way we operate as an organization. At Hindustan Zinc Limited, we understand the profound impact our operations have on the environment and the communities around us. Therefore, it is imperative that every business decision we make considers its effects on biodiversity, nature, and the socio-economic development of the areas we operate in.
I am proud to announce that we are among the first in the metals & mining sector in India to adopt the TNFD framework. This decision underscores our commitment to integrate nature-related issues into our governance, strategic planning, risk management, and disclosures.
Our TNFD Report is a testament to our dedication to environmental stewardship. It highlights our achievements and outlines our roadmap for the future. It further represents a significant step forward in our efforts to embrace nature, empower our communities, and make a positive impact on the world around us.
I invite each one of you to join us in this transformative journey towards a safe, smart & sustainable future. We will continue to work together to ensure that Hindustan Zinc remains at the forefront of environmental stewardship.
Best Wishes,
Arun Misra
CEO- Hindustan Zinc Limited
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TNFD Report for Hindustan Zinc Ltd
Biodiversity and Nature Conservation at Hindustan Zinc Limited
TNFD Report for Hindustan Zinc Ltd
Hindustan Zinc Limited is India's largest and the only integrated zinc, lead, and silver producer. It is the world's second-largest integrated zinc producer and the third largest producer of silver. The company is a subsidiary of Vedanta Limited, which holds 64.9%, and the Government of India holds 29.5%. The company has a market share of ~75% of the growing Zinc market in India with its headquarters at Zinc City, Udaipur, India along with Zinc- Lead mines and smelting complexes spread across the state
of Rajasthan, India, and a refinery in the state of Uttarakhand, India.
Protecting and conserving nature is an integral part of Hindustan Zinc Limited's commitment to obtain resources sustainably. The company is committed to the integration of biodiversity conservation into its operations. Accordingly, the company has taken a strategic approach to mitigate any adverse impact of its operations on biodiversity by reviewing operational procedures and systems.
Hindustan Zinc Limited has a Biodiversity Policy which aims to avoid, minimize and offset the negative impacts on biodiversity at its operations and encourage value chain partners to align with the company's commitment and avoid deforestation and habitat loss in internationally recognized areas such as World Heritage Sites, International Union for Conservation of Nature (IUCN) category (I-VI) Protected Areas, legally designated protected areas, and Key Biodiversity Areas.
Hindustan Zinc Limited has adopted a commitment to achieve No Net Loss (NNL) on biodiversity and Net Positive Impact (NPI) for critical habitat at all our operations. The company is committed to:
- Avoid operating/ exploring/ mining/ drilling in World Heritage Sites and IUCN Category I-IV protected areas.
- Compensate with future reforestation (no net deforestation) by appropriate on or off-site habitat restoration. Plan to achieve No Gross Deforestation in
protected areas and strive to achieve No Net Deforestation in operating sites by 2050 against the baseline of 2020.
3. Apply mitigation hierarchy [avoid, mitigate (reduce, regenerate, and restore), offset and transform] when operating in areas in close proximity to critical biodiversity. The company uses the mitigation hierarchy as a key framework to achieve their vision of NNL on biodiversity.
Avoid - Whenever possible, the company avoids negative biodiversity and Ecosystem Services impacts, even if it requires significant changes in their plan to protect critical areas.
Mitigate - Where impacts cannot be avoided, they should be mitigated as far as possible. Mitigation measures may include:
- Reduce - The company minimizes impacts that are unavoidable through the adoption of impact reduction technologies.
- Regenerate and Restore - On a progressive basis, the company rehabilitates and restores areas to re-create biodiversity values and reclaims areas with a view to closure. Such reclamation practices can help replace much or most of the biodiversity of the natural habitats that existed prior to the operational sites.
Offset - In cases where it may not be possible to avoid or mitigate biodiversity impact then the company would design and implement biodiversity offsets to move towards a net positive gain of biodiversity.
Transform - The company is alligned with global initiatives with aim at enhancing biodiversity in and around the areas of operation.
Hindustan Zinc Limited is currently piloting targets for nature with the Science Based Targets for Nature (SBTN) and working on Assess and Prioritize steps (Steps 1 & 2) to assess its impacts on nature and define where action is most needed. This would help the company in setting science-based targets to reduce pressures on Nature.
Hindustan Zinc Limited is amongst the 17 companies globally in Initial SBTN Target Validation Pilot participants. The company is also a member of India Business & Biodiversity Initiative (IBBI) by Confederation of Indian Industries (CII). The initiative serves as a national platform for businesses and its stakeholders for dialogue sharing and learning, ultimately leading to mainstreaming sustainable management of biological diversity into businesses. The company is also working with IUCN to develop comprehensive Biodiversity Management Plans for all the Rajasthan based operating sites.
Photo credit: IUCN/Mridul Vaibhav
With release of TNFD recommendations in September 2023, Hindustan Zinc Limited commenced a gap assessment to identify readiness to report against the TNFD recommendations and incorporated TNFD's LEAP approach into the risk assessment process in their Ecosystem Services Review (ESR) for each site. Through the International Council on Mining and Metals (ICMM), the company worked with peer companies to support the testing, iteration, and refinement of the TNFD through providing feedback on the framework based on the assessments/ pilot.
This report is the first TNFD report of Hindustan Zinc Limited prepared based on the nature risk assessment conducted by the company using LEAP approach. This report provides the response of Hindustan Zinc Limited against the 14 TNFD recommendations under Governance, Strategy, Risk & Impact Management and Metrices & Targets.
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TNFD Report for Hindustan Zinc Ltd
Figure 1:
Biodiversity Policy of Hindustan Zinc Limited
TNFD Report for Hindustan Zinc Ltd
TNFD General Requirements
Biodiversity Policy
Purpose
Protecting and enhancing biodiversity is an integral part of Hindustan Zinc's commitment to sustainable development. We are conscious of the potential impacts and dependencies of our business on the environment in general and on biodiversity. Integrating the need for biodiversity conservation into operational decision-making processes and taking measures to minimize impacts is a commitment across the company with a vision of Nature Positive.
Biodiversity is a complex phenomenon that needs to be identified, understood, and valued from a biological and societal (i.e., in terms of ecosystem services) perspective and the Company is conscious of the potential impacts and dependencies of our business on the environment in general and on biodiversity in particular. This Biodiversity policy shall help us define, strategize, plan, and implement the essential roadmap, guidance, and measurement towards achieving sustainability goals.
This policy is forward looking and sets a vision for businesses across the Hindustan Zinc.
Scope
This policy is applicable to all Hindustan Zinc Limited business units, including subsidiaries, joint ventures, and acquisitions, managed sites, licensees, outsourcing partners, corporate offices, and research facilities. This policy is also applicable to all Hindustan Zinc Limited employees, contractor employees, business partners, suppliers, and others with whom Hindustan Zinc does business.
In addition, this policy is applicable throughout the operational lifecycle of the projects and mines, covering stages from exploration and planning to evaluation, operation, and closure. furthermore, it extends to activities in our upstream value chain.
Objectives of the Biodiversity Policy
Hindustan Zinc will strive to:
- Achieve nature positive impacts to biodiversity values by implementing intense management actions either on site or off site, to compensate for any project impacts to areas recognized nationally or internationally for their high values of threatened, endemic or migratory / congregatory species or unique and threatened ecosystems.
- Comply with, and exceed whenever feasible, the local, regional, and national legislative requirements concerning land management and biodiversity conservation, as well as relevant international agreements, in all jurisdictions where we operate.
- Avoid deforestation and habitat loss in internationally recognized areas such as World Heritage Sites, IUCN category (I-VI) Protected areas, legally designated protected areas, and Key Biodiversity Areas.
- Compensate with future reforestation (no net deforestation) by appropriate on or off-site habitat restoration. Plan to achieve No Gross Deforestation in protected areas and strive to achieve No Net Deforestation in operating sites by 2050 against the baseline of 2020.
- Achieve No-Net Loss (NNL) at our project operations and ensure that we will operate on the principles of Net Positive Impact (NPI) for critical habitat (when we operate in or near areas declared as biodiversity hotspot areas, ecologically sensitive zones, International Union for the Conservation of Nature IUCN Category I-IVprotected areas, nearby world heritage sites & areas having critical habitat and ecosystems), and at all mine sites by closure through applying mitigation hierarchy.
- Set targets and objectives to avoid, reduce or mitigate biodiversity and nature-based impacts on people and planet.
- Integrate biodiversity & nature considerations into our strategic approach, financial planning and analyzing the nature-related risks and opportunities throughout the project lifecycle, including decommissioning, closure, and rehabilitation.
- Conduct biodiversity risk assessment and apply the mitigation hierarchy to avoid or minimize biodiversity and nature-based risks.
- Ensure continuous improvements in biodiversity performance through effective management and implementation of action plans in alignment with the "Nature-Based Solutions" approach.
- Review the performance against the policy on a periodic basis to ensure management of biodiversity as per our objectives including the sharing of good practices throughout the organization and stakeholders.
- Engage with local, national, and global conservation initiatives, conservation experts and organizations. Support joint efforts by the private and public sectors, and foster knowledge, awareness, and participation among relevant stakeholders, including employees, to collectively address biodiversity and nature-related challenges.
- Engage and raise awareness amongst our employees, business partners, supply chain and other stakeholders to enhance their knowledge and understanding of biodiversity and ecosystem management practices.
- Actively encourage value chain partners and suppliers to align with this policy and avoid operational activities near sites containing globally or nationally important biodiversity.
Responsibility & Review
This policy is part of the Vedanta Sustainability Framework, and each Hindustan Zinc business shall implement this policy. Group CEO will be accountable for controlling and setting the policy, and the Group Executive Committee are responsible for the full implementation of the policy and associated standards. Board ESG will review this policy annually and recommend appropriate revisions to the Board as may deem necessary.
As per TNFD recommendations, the general requirements to decide the boundaries of this report are described below:
Materiality Applications
For this TNFD report, Hindustan Zinc Limited has adopted the materiality definition set out by Global Reporting Initiative (GRI) which states, "The organization priorities reporting on those topics that represent its most significant impacts on the economy, environment and people, including impacts on their human rights." Accordingly, the nature-related dependencies and impact, risks and opportunities arising from the company operations are assessed, evaluated and strategically managed.
Additionally, Hindustan Zinc Limited is piloting the Science- Based Targets for Nature and currently working on the Assess and Prioritize steps (Steps 1 and 2). This process involves evaluating its impact on nature and identifying areas where action is most needed. In the initial pilot phase, the company is setting science-based targets to reduce pressures on freshwater and land. For all other significant impacts, the company plans to set science-based targets in the future as the Science-Based Targets for Nature expands its coverage of various pressures.
Scope of disclosures
For this TNFD report, Hindustan Zinc Limited has included its direct operations, comprising smelters, mines, power plants, and refinery units, with a total assessment of nine operational units. Additionally, critical suppliers are evaluated for physical risks and transition-reputational risks using the Biodiversity Risk Filter (BRF). Consequently, the report focuses exclusively on direct operations and specific upstream value chain components (critical suppliers). Downstream value chains are excluded from this report. Detailed information about these direct operations, including their locations and associated biome is presented in the table below.
Figure 2:
Scope of Business Value chain covered in the report
01 02 03
Upstream | Direct | Downstream |
value chain | operations | value chain |
(Partially Covered) | (Fully Covered) | (Shall be Covered in |
Subsequent Report) |
Date: 05th June, 2024 | Arun Misra |
CEO & Whole Time Director, HZL |
Photo credit: IUCN/Mridul Vaibhav
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TNFD Report for Hindustan Zinc Ltd
The map below illustrates the locations of the plants covered in this TNFD report, with each plant positioned within its respective biogeographic zone. Among the nine operational units detailed in this report, eight are situated in the Semi-Arid Biogeographic Zone. In contrast, the Pantnagar Metal Plant (PMP) is uniquely located in the Gangetic Plain Biogeographic Zone, which features a distinctly different ecological and geographical landscape.
Table 1:
List of Hindustan Zinc Limited operational units along with locations and IUCN Biomes Typology
TNFD Report for Hindustan Zinc Ltd
Figure 3:
Spatial Distribution of Hindustan Zinc Limited's Operations over Biogeographic Zones of India
S. No. | Unit Names | Locations | IUCN Biomes Typology | Operations | |
1 | Zawar Mines (ZM) | Udaipur District, | T5.1 | Semi-desert steppes | Zinc- Lead Mining, Power Plant |
Rajasthan | |||||
2 | Kayad Mines (KM) | Ajmer District, | T5.1 | Semi-desert steppes | Zinc- Lead Mining |
Rajasthan | |||||
3 | Rampura Agucha Mines (RAM) | Bhilwara District, | T5.1 | Semi-desert steppes | Zinc- Lead Mining |
Rajasthan | |||||
4 | Rajpura Dariba Mine (RDM) | Rajsamand District, | T5.1 | Semi-desert steppes | Zinc- Lead Mining |
Rajasthan | |||||
5 | Sindesar Khurd Mine (SKM) | Rajsamand District, | T5.1 | Semi-desert steppes | Zinc- Lead Mining |
Rajasthan | |||||
6 | Chanderia Lead Zinc Smelter (CLZS) | Chittaurgarh | T5.1 | Semi-desert steppes | Smelter (Zinc and Lead), Power plant |
District, Rajasthan | |||||
7 | Dariba Smelting Complex (DSC) | Rajsamand District, | T5.1 | Semi-desert steppes | Smelter (Zinc and Lead), Power plant |
Rajasthan | |||||
8 | Zinc Smelter Debari (ZSD) | Udaipur District, | T5.1 | Semi-desert steppes | Smelter (Zinc) |
Rajasthan | |||||
9 | Pantnagar Metal Plant (PMP) | Udham Singh | T4.2 | Pyric tussock | Silver Refinery, Zinc melting and casting |
Nagar District, | savannas | ||||
Uttarakhand |
The Time Horizons
This TNFD report considers three-time horizons (Short, Medium, and Long term) for planning, implementing, and reporting on nature related issues. The description of three- time horizons is provided below. In implementation of Biodiversity Policy, Hindustan Zinc Limited has developed site- specific Biodiversity Management Plans in 2014. Presently,
all the Biodiversity Management Plans are under revision and shall be in place by end of 2024. These Biodiversity Management Plans shall identify the short term, medium term and long-term action plans for conservation of biodiversity and ecosystem services at their operational sites.
Photo credit: IUCN/Mridul Vaibhav
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Time Horizons | Years | Description |
Short | 0-1 year | The nature related initiatives that can be started and completed within a span of 1 year |
are considered under this "Short" i.e. Undertaking the biodiversity sensitivity screening, | ||
Preparing site specific Biodiversity Management Plan. | ||
Medium | 5-10 year | The nature related initiatives that take time in planning and can be completed in span of |
5-10 years are considered under this "Medium" i.e. Undertaking plantation on degraded | ||
lands, development of wetlands etc. | ||
Long | 10-15 year | The nature related initiatives that take time in planning and can be completed in span of |
more than 10 years are considered under this "Long" i.e. undertaking Ecosystem and Habitat | ||
Restoration, NbS based carbon offset projects etc. | ||
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TNFD Report for Hindustan Zinc Ltd
Engagement with local communities, and affected stakeholders
Hindustan Zinc Limited has a robust institutional structure in place for engaging with local communities, and other stakeholders on nature-related issues. The company has adopted the below process to develop site specific biodiversity and ecosystem management plan for all operational sites.
Assess | Planning | Implement |
IUCN was engaged by company to develop these site-specific Biodiversity Management Plans. Following is the mapping of community engagement process at each stage of Biodiversity Management Plan development.
Stages | Activity | Community Involvement |
Assess | Biodiversity Assessment and | In this study, the extensive community survey was conducted at each site. Especially the |
Ecosystem Services Study | survey was focussed on: | |
• the condition of ecosystem services, | ||
• changes in the patterns of ecosystem services, | ||
• impact of these changes on the community and, | ||
• their suggestion on managing the ecosystems. | ||
These inputs were the part of the Biodiversity & Ecosystem Services (BES) inventory as | ||
Ecosystem Service Review report for each site. | ||
Plan | Biodiversity Management | The Biodiversity Management Plans are being developed for each site of Hindustan Zinc |
Plan (BMP) development | Limited with a specific component on socio-economic environment. This component | |
shall deal with the initiatives related to local communities and relevant stakeholders for | ||
biodiversity management in the area. | ||
Implement | BMP Implementation | The Biodiversity Management Plan implementation outside the boundaries of Hindustan Zinc |
Limited sites shall be done in collaboration with local communities. There will be a provision of | ||
engaging with biodiversity management committees (BMCs) for taking institutionalize actions. | ||
Photo credit: IUCN/Mridul Vaibhav
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Governance
Hindustan Zinc Limited upholds sustainability as a cornerstone of its business ethos. With a steadfast commitment to sustainable growth, the company has meticulously crafted a comprehensive three-tier governance framework. This framework intricately delineates the organizational structure, roles, responsibilities, and decision-making processes that underpin the company's endeavors in the realm of nature and climate.
At its core, this governance structure is designed to oversee the safety, health, environmental performance, and social impact of company's business operations, ensuring a holistic approach to sustainability management. Anchored in this framework are several key principles that define the company's approach to sustainable development. These include a well-defined governance structure and policy framework, the adoption of environmentally friendly technologies, rigorous environment impact assessments, conservation of natural resources, transparent engagement with stakeholders, independently verified reporting arrangements, and a commitment to social, economic, and institutional development in the communities where it operates.
Complementing this governance framework are a series of meticulously crafted policies tailored to address various sustainability challenges. These policies encompass Biodiversity Policy, Energy & Climate Change Policy, CSR Policy, Environmental Policy, Human Rights Policy and Water Management Policy. Together, these policies and governance mechanisms enables Hindustan Zinc Limited to effectively manage its nature-related Dependencies, Impacts, Risks, and Opportunities, thereby aligning company's operations with their sustainability objectives and fostering value creation for all stakeholders.
Board Oversight
At Hindustan Zinc Limited, the board plays a pivotal role in overseeing all aspects of sustainability as they relate to the company's long-term business strategy. The board also oversees the objectives mentioned in the Biodiversity Policy of the company, especially commitment to achieve No-Net Loss at operation level by implementation of the Mitigation Hierarchy.
To ensure robust governance for sustainability management including nature-related components, the company has established two board-level committees:
TNFD Report for Hindustan Zinc Ltd
Audit and Risk Management Committee (ARC): The Audit and Risk Management Committee of the Board ensures an effective internal control environment by:
- Enhancing the efficiency and effectiveness of operations.
- Safeguarding assets and ensuring adequate provisions for all liabilities.
- Ensuring the reliability of financial and other management information, and the adequacy of disclosures.
- Ensuring compliance with all relevant statutes.
The committee also oversees climate-related risks and opportunities. It regularly reports on risk mitigation efforts to the Board. Additionally, the Audit and Risk Management Committee reviews potential impacts on production disruptions due to physical and transition risks that may affect the company's core business operations.
Sustainability and ESG Committee: This committee is responsible for overseeing strategy implementation, policy development, and the establishment and review of goals and targets aimed at enhancing stakeholder commitment, convenes semi-annually.The CEO, also a member of the Sustainability and ESG Committee, provides quarterly briefings to the board. The primary responsibilities of the Sustainability and ESG Committee include:
- Assisting the Board in meeting its ESG responsibilities and ensuring strong governance for sustainability.
- Providing guidance to ensure continual improvement in the company's sustainability performance and the implementation of appropriate processes and policies.
- Guiding and reviewing the company's sustainability strategy, goals, and targets.
- Playing a key strategic role in business decisions to ensure workplace safety, prevent environmental damage, enhance stakeholder commitment, and maintain the company's reputation as a leader in the sustainable metal and mining sector.
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TNFD Report for Hindustan Zinc Ltd
Figure 4:
Governance Structure of Hindustan Zinc Limited
Risk & Audit | 1. Chairperson |
Management Committee | 2. Members [2 No.] |
Board
Oversight
Sustainability & | 1. Chairperson |
ESG Committee | 2. Members [3 No.] |
Executive Sustainability Committee Chaired by CEO
Management | Biodiversity Management Community Chaired by Chief HSE & Sustainability Officer |
Oversight | |
SBU Level ESG Committee Chaired by SBU CEO |
Management Oversight
Hindustan Zinc Limited has implemented a three-tier governance structure to efficiently manage and oversee sustainability initiatives.
To drive progress toward its 2025 sustainability targets, the company has established ten sustainability committees. These committees are composed of representatives from all business units, ensuring a comprehensive and integrated approach. Each committee is responsible for specific sustainability goals and consistently monitors and reports on the company's advancements toward achieving these goals. This structured approach allows for coordinated efforts and accountability across the organization. All these governing authorities are meeting on a monthly basis to review the progress against set targets.
Photo credit: IUCN/Mridul Vaibhav
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TNFD Report for Hindustan Zinc Ltd
Figure 5:
Sustainability Communities in Hindustan Zinc Limited
Energy and | Water management | Waste to | Biodiversity | Central OH |
carbon community | community | wealth community | community | & Safety Council |
Sustainability community
Finance | Communication | Supply chain | People | CSR |
community | community | community | community | community |
Executive Level Sustainability Committee: The Chief Executive Officer (CEO) chairs the Executive Sustainability Committee, comprising all Executive Committee members and chairpersons from ten sustainability communities. The Committee convenes monthly to assess progress towards the Sustainability Goals 2025. It plays a pivotal role in decision-making, ensuring workplace safety, environmental protection, stakeholder engagement, and safeguarding the company's reputation. Its responsibilities include:
- Developing the sustainability strategy and establishing goals and targets for the company.
- Continuously monitoring project status aimed at meeting sustainability goals, tracking progress against objectives, and guiding strategic resource allocation to achieve the Sustainability Goals 2025.
Biodiversity Management Community: This team, assigned with biodiversity conservation, risk assessment, and the development of mitigation strategies, functions within the purview of the Executive Sustainability Committee. It evaluates the nature-related Dependencies, Impacts, Risks, and Opportunities of operations. Moreover, it aims to boost resource efficiency and accountability by strategizing the creation and enforcement of standards for nature conservation and biodiversity protection.
At operational sites, environment heads and biodiversity managers, are members of this community and are responsible for implementing Biodiversity Plans.
Strategic Business Units (SBU) ESG Committees: At each of its SBUs, the company has instituted SBU ESG Committees. These committees ensure the adoption of sustainability practices related to ESG aspects, following the guidance provided by higher-level committees to meet the sustainability goals for 2025. Additionally, they oversee the ongoing identification and monitoring of dependencies, impacts, risks and opportunities at each location and initiate appropriate mitigation efforts to minimize or eradicate these risks.
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TNFD Report for Hindustan Zinc Ltd
Human Right and engagement with Local Communities and Stakeholders
TNFD Report for Hindustan Zinc Ltd
Strategy
Hindustan Zinc Limited upholds a steadfast commitment to human rights, extending to all stakeholders including employees, contractor workforce, business partners, suppliers, local communities, and other stakeholders.
Aligned with international standards, Hindustan Zinc Limited's Human Rights Policy adheres to the United Nations Declaration on Human Rights, UN Guiding Principles of Business and Human Rights (the "Ruggie Principles"), Universal Declaration of Human Rights (UDHR), and International Labour Organization (ILO) guidelines.
The company demonstrates its dedication to local communities where operations are situated through various objectives outlined in the Human Rights Policy, including:
Minimizing risks and impacts on the health and safety of the local community throughout the project lifecycle.
Respecting and preserving the cultural lifestyle and heritage of local communities.
Seeking free, prior, informed consent (FPIC) from Indigenous Peoples (IP) or Vulnerable Tribal Groups (VTGs) when projects are located on traditional or customary lands.
Engaging with the local community to understand their priorities and concerns and providing accurate, transparent, culturally appropriate, and timely information about operations.
Minimizing physical and economic displacement of people through appropriate practices.
Hindustan Zinc Limited also maintains additional policies such as the CSR Policy, Anti-harassment & Discrimination Policy, Diversity & Inclusion Policy, Code of Conduct, Supplier Code of Conduct, and Health & Safety Policy. These policies facilitate engagement with indigenous peoples, local communities and socially marginalized groups.
Photo credit: IUCN/Mridul Vaibhav
The LEAP Approach
TNFD recommends following LEAP approach to identify Dependency, Impact, Risk and Opportunities of business on nature. LEAP approach provides a systematic framework to understand business level as well as site level nature related issues. Following the TNFD recommendations, Hindustan Zinc Limited followed the LEAP framework to evaluate and assess the business level as well as site level nature related issues.
The key parameters to be covered under each phase of LEAP framework along with Hindustan Zinc Limited's approach is mentioned in the table below.
LEAP indicators | Hindustan Zinc Limited's Approach | |
L1. Span of the business | Direct operations- Company's operational units (9 units) | |
model and value chain | Upstream- Critical Suppliers are considered for assessment. | |
Locate | L2. Dependency and | ENCORE Tool ratings for Mining, Metal Processing and Diversified Metals are used for dependency and |
impact screening | impact screening. | |
L3. Interface with nature | The Biomes presence at all the operational sites are mapped as per IUCN Biomes Typology. | |
L4. Interface with | None of the sites fall within proximity of areas of high biodiversity importance. 8 sites in Rajasthan falls | |
under Water Stress. The company has considered all direct operational sites (9 Units) as priority units and | ||
sensitive locations | ||
is developing the Biodiversity Management Plans. | ||
E1. Identification of environmental | Ecosystems Services mapping and review is conducted at each direct operational site to identify the | |
assets and ecosystem services | environmental assets and ecosystem services. | |
Evaluate | E2. Identification of dependencies | Identification of dependency and impact of company's business sector are done using ENCORE tool and |
and impacts (Business Sectors) | Biodiversity Risk Filter. | |
E3. Dependency and Impact | WRI's Ecosystem Services Review tool is used for dependency and Impact analysis for each sites on the | |
analysis (size and scale) | ecosystem service. Both sizes and scale of dependency and impact are identified, and ranking is done. | |
E4. Impact Materiality | The company has considered the impacts on company's operations, employees and local communities as | |
Assessment | material impacts for identifying risk and opportunities. | |
A1. Risk and Opportunity | The risk and opportunities corresponding to the impact and dependencies are identified for all the sites. | |
identification | Also, the risk assessment done for all the critical suppliers using WWF's Biodiversity Risk Filter. | |
A2. Adjustment of existing | The company has already existing biodiversity risk assessment and management framework. Accordingly, | |
the site-specific Biodiversity Management Plans were developed in 2014. Presently these Biodiversity | ||
Assess | risk mitigation and risk and | |
Management Plans are being revised. Additionally, Company has adopted WRI's Ecosystem Services Review | ||
opportunity management | ||
The risk and opportunity identified by LEAP assessment are being integrated in the revised site-specific | ||
tool for identifying site level impact, dependency, risk and opportunities. | ||
A3. Risk and opportunity | biodiversity management plans of all priority sites. The Biodiversity Management Plan shall have the | |
measurement and prioritisation | ||
prioritization of risks and corresponding actions. | ||
A4. Risk and opportunity | The company has considered all medium and high impact and dependency related risks as material risks | |
materiality assessment | and opportunities. | |
P1. Strategy and | The risks and opportunity management strategy and resources allocations shall be included in the | |
resource allocation | Biodiversity Management Plans for each site. | |
Prepare | P2. Target setting and | The company has adopted targets for 2025 and 2030 for 3 Nature Realms (Land, Water and Atmosphere). |
Also company has adopted the TNFD core global disclosure indicators and metrics for reporting and | ||
P3. Reporting | ||
performance management | monitoring the company's performance. | |
The company has reported the assessment results as part of "Strategy" and "Metrics & Targets" sections of | ||
the TNFD report. | ||
P4: Presentation | The company shall continue to present disclose nature related risks and opportunities using TNFD | |
recommendation in coming years as well. | ||
18 | 19 | |
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Hindustan Zinc Limited published this content on 05 July 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 July 2024 07:29:06 UTC.