Sustainability Mining

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SUSTAINABLE

MINING CHARTER
An Approach to Sustainable Mining
METAL & MINING SECTOR -
TOWARDS A SUSTAINABLE FUTURE

The metals and mining sector in India is bound to


witness significant growth in the coming decade
with per capita demand for key metals such as
steel, projected to increase from 74 kg in 2018 to
158 kg in 2030 (Invest India, 2020) and that for
aluminium, projected to increase to more than
triple from 2.5 kg in 2018 to 8.7 kg by 2030 (Fitch,
With greater focus on the environmental and
2020). The Government of India recognises the
social impact of mining operations, there is an
critical importance of the sector to the nation;
opportunity to adopt a growth model that is
through ongoing policy reforms, it aims to attract
integrated and holistic, simultaneously creating
investment and further growth.
economic, social, and environmental value for a
However, operational expansion and economic wide range of stakeholders
growth must be balanced with a focus on
community and worker well-being, environmental
stewardship, and the economic development of
local communities. This is particularly critical in the
mineral-bearing parts of India, which are also rich
in forests, biodiversity, and tribal populations.

SUSTAINABLE MINING CHARTER | 2


SUSTAINABLE
MINING CHARTER
OUR BLUEPRINT FOR
SUSTAINABLE MINING
As a global metals business working across
the aluminium and copper value chains with
operations in 10 countries, sustainability is at the
core of Hindalco’s operations.

Hindalco’s global operations necessitate a holistic


and well-rounded approach to sustainability that
encompasses a variety of areas, like sustainable
mining practices, energy conservation, recycling,
environment-friendly disposal of industrial wastes,
safety practices, socio-economic development of
the communities around our mining locations and
empowerment of our employees.

At Hindalco, we envision a more Resilient,


Responsible and Reliable future and the
Sustainable Mining Charter is aimed at accelerating The Sustainable Mining Charter provides
our shift towards sustainability-focused operations. a holistic framework to accelerate the shift
from compliance focused operations to
The Sustainable Mining Charter has been sustainability focused operations and become
developed through an in-depth participatory future ready to meet the rising demand of
process. With the aid of extensive consultations
metals and minerals.
and inputs, review of publications by industry
bodies and policymakers, and benchmarking of
global best practices, the Sustainable Mining
Charter reflects ground realities and a collective
consensus on addressing the challenges of
achieving sustainability in mining operations.

This comprehensive document transcends the


limitations of the existing linear approaches
to sustainability through a set of actionable
frameworks and case studies to support the
design and implementation of sustainable mining
practices, with a strong focus on execution
roadmaps and governance across mines.

SUSTAINABLE MINING CHARTER | 3


SUSTAINABLE
MINING FRAMEWORK
The Sustainable Mining Charter presents a systems mitigating and offsetting environment impact
view of the mining ecosystem. By identifying and of mining operations and Social Performance
understanding the interconnectedness between Leadership, focusing on enhancing resilience of
different components, the Charter identifies seven communities we operate within. Coupled with a
thematic (focus) areas, actions across which, will strong governance mechanism, which provides
create a positive impact on the environment and the guidance on designing, executing and monitoring
society. sustainability interventions, and reporting
sustainability performance, our framework provides
Our Sustainable Mining Framework is based on a holistic approach for achieving sustainability
the fundamental principles of Environmental across the mining operations.
Stewardship, focusing on avoiding, minimizing,

Figure 1. Sustainable Mining Framework

SUSTAINABLE MINING CHARTER | 4


Although the actions based on the Charter can have an impact on almost all SDGs, they can significantly
contribute towards the below SDGs:

Environmental sustainability goals Social inclusion goals

Sustainable economic development goals

SUSTAINABLE MINING CHARTER | 5


DELIVERING SUSTAINABILITY
ACROSS THE THEMATIC AREAS
The seven thematic areas capture vital environmental and societal impacts of mining operations; actions across
these seven areas provide a holistic approach to building sustainable mining operations.

The Charter outlines objectives (aspirational end states) for each thematic area, aiming to act as the north
star for our teams and challenge us to innovate. The Charter provides actionable frameworks across mine
lifecycle to guide actions, identifies challenges and proposes risk mitigation strategies. It also suggests key
performance indicators, which mine teams can incorporate to measure critical sustainability parameters
while sharing relevant and practical case studies and best practices from Hindalco and other global mining
companies.

OBJECTIVES

/ Ensure growth of local environmental and social infrastructure through


effective conservation, restoration, rehabilitation & resettlement and
SUSTAINABLE responsible mine closure practices
LAND USE
/ Minimize risk to natural resources, biodiversity, livelihood, socio-cultural
and natural heritage

/ Rethink and redesign mining activities to avoid and minimize impact on


WATER watershed
USE / Conserve, restore and equitably share water resources with stakeholders in
order to maintain positive water balance in the watershed

/ Manage waste responsibly and go beyond compliance to reduce, reuse,


WASTE
recycle, recover and ensure safe disposal of waste
MANAGEMENT
/ Transform towards a circular economy and create value out of waste

/ Become carbon positive by adopting low-carbon growth strategy


EMISSIONS
REDUCTION / Ensure a healthy and safe environment by balancing the impact of mining
operation of air quality and climate change

BIODIVERSITY / Strive for No-Net-Loss of biodiversity by avoiding, minimizing, restoring


MANAGEMENT and if necessary, offsetting residual impacts on biodiversity

/ Achieve ‘zero harm’ through institutionalizing systems, controls and


HEALTH & standards
SAFETY / Ensure safe environment for mine workers and communities with focus on
employee well being

COMMUNITY / Develop an integrated, equitable and sustainable growth model that


DEVELOPMENT creates synergistic and symbiotic socio-economic value for the community

SUSTAINABLE MINING CHARTER | 6


GOVERNANCE EXCELLENCE
TO DRIVE IMPLEMENTATION
Actions to improve sustainability performance across different focus areas are anchored by a strong
Governance mechanism, which will enhance efficiency, participation, transparency, accountability and foster
continuous improvement.

The Charter defines a three-tiered Governance Organisation, which will be able to provide guidance on and
ensure implementation of sustainability interventions, and a Sustainability Dashboard, which can be used to
measure overall mine level sustainability performance across the seven thematic areas.

At Hindalco, we believe in transparency in reporting our sustainability performance, which is reflected by


our public disclosures through standards such as Dow Jones Sustainability Index (DJSI). Recognizing the
importance of public reporting the Charter defines a Reporting Framework, which can be used by mine teams
to understand different reporting standards and ensure alignment with standards being followed by the
organization.

GOVERNANCE SUSTAINABILITY REPORTING


ORGANISATION SCORECARD FRAMEWORK

Consisting of cross Provides a structured Identifies different types


functional teams to enable framework to quantify the of reporting that can be
an organization to implement sustainability performance used by the organization
sustainable mining strategies of a mine using a defined for external reporting and
across various focus areas, set of KPIs and weightage provides approaches for
manage goals, target setting assigned to each focus area selecting the right standard,
and monitor progress. to measure and monitor suited to the organizational
mine level performance. needs and objectives.

SUSTAINABLE MINING CHARTER | 7


MINE-LEVEL SUSTAINABILITY
IMPLEMENTATION ROADMAP
Success of guidelines and frameworks provided in Charter is dependent on effective implementation at mine
site level. The Charter thus provides a mine level sustainability implementation roadmap.

The Sustainability implementation Roadmap provides guidance to mine team on developing mine
sustainability goals aligned with corporate sustainability goals; designing and implementing sustainability
interventions; and reporting performance.

It also provides guidance on incorporating mine specific factors such as the stage of the mine in its lifecycle,
type of mineral and extraction methodology and land ownership, to name a few, while defining goals and
designing interventions thus allowing each mine to prioritise issues and design solutions, which are best
suited to its requirement.

Understanding Mine Target


setting and Execution
site conditions sustainability Review and
STAGES Intervention plan
and maturity of goal Reporting
development development
mine practices development

Understand Incorporate Develop yearly Develop a plan Report


site conditions mine-specific targets for to execute performance
through factors (lease different goals different against targets
baselining duration, initiatives
studies mineral type Design including Review
etc.), corporate interventions finalizing performance
ACTIVITIES Understand sustainability utilizing against overall
maturity goals, local approaches Teams goals and
of current community provided in action plans
practices across needs and Part A of the Roles and
thematic areas mine plan to Charter responsibilities Score and track
utilising self develop mine mine level
assessment Project timeline sustainability
sustainability
questionnaires and budget performance
goals

Baseline Sustainability Yearly targets Plan for Performance


information goals across across executing report
across different thematic areas different
OUTPUT thematic areas thematic areas initiatives Adjustments to
Interventions (project plan, action plans
Mine maturity across roles and
score different areas responsibilities,
budgeting).

SUSTAINABLE MINING CHARTER | 8


WAY FORWARD
For us at Hindalco, growth ties in with sustainability. Through our Sustainable Mining Charter, we are trying to
transform mining to become a force for adding value to businesses, the environment and communities.

We envision this Charter to advance a shared understanding of socially, economically and environmentally
responsible areas that proposes a common platform for disseminating best practices and establishing
benchmarks within the mining industry in India.

We will continuously attempt to share our learnings with the broader mining community to develop a nation-
centric approach to sustainable mining in India.

In case of any queries on the Charter, please write to anoma.basu@adityabirla.com

SUSTAINABLE MINING CHARTER | 9


ABOUT HINDALCO INDUSTRIES LIMITED
Hindalco Industries Limited [HIL] is the metals flagship company of the Aditya Birla
Group. An $18 billion metals powerhouse, Hindalco is the world’s largest aluminium
company by revenues, and a major player in copper. It is also one of Asia’s largest
producers of primary aluminium.

Guided by its purpose of building a greener, stronger, smarter world, Hindalco


provides innovative solutions for a sustainable planet. Its wholly-owned subsidiary
Novelis Inc. is the world’s largest producer of aluminium beverage can stock and
the largest recycler of used beverage cans (UBCs). The Company operates several
bauxite and coal mines in India for captive consumption in its aluminium business.

Hindalco’s copper facility in India comprises a world-class copper smelter,


downstream facilities, a fertiliser plant and a captive jetty. The copper smelter is
among the world’s largest custom smelters at a single location.

Hindalco’s global footprint spans 47 manufacturing units across 10 countries.

June 2021 | © All rights reserved. All information, advice, text, images and other content provided in
this Sustainable Mining Charter (“Charter”) is given in good faith and is based on sources believed to
be reliable and accurate at the time of release of the Charter. Whilst every endeavour is taken to keep
the information up-to-date and correct, Hindalco Industries Limited (“HIL”) make no representations or
warranties of any kind, expressed or implied, about the accuracy, completeness, suitability, reliability with
respect to the content of the Charter or any other information contained in the Charter for any purpose.
HIL own all copyright in the Charter under the Copyright Act, 1957. Except prior written permission of
HIL, you are prohibited from copying, reproducing, modifying, distributing, displaying, performing or
transmitting any of the contents of the Charter for any purposes, and nothing otherwise stated or implied
in the Charter confers on you any license or right to do so.

You may use the content of the Charter solely for your own individual non-commercial and informational
purposes only. Any other use, including for any commercial purposes, is strictly prohibited without our
express prior written consent. Requests and inquiries concerning any of the above mentioned rights
should be addressed by email to anoma.basu@adityabirla.com

HINDALCO INDUSTRIES LIMITED.


Registered Office: Ahura Centre, 1st Floor, B Wing
Mahakali Caves Road Andheri (East), Mumbai 400 093
Website: www.hindalco.com

Document design, layout and illustrations by Shubho Broto Das, goTotallySocial.com

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