Corporate Citizenship

“There is one kind of charity common enough among us, and which is certainly a good thing, though I do not think it is the best thing we have. It is patchwork philanthropy… What advances a nation or community is not so much to prop up its weakest and most helpless members as to lift up the best and most gifted so as to make them of greatest service to the country. I prefer this constructive philosophy”.

– Jamsetji Tata

As the Tata Steel Group’s operations have expanded manifold to new geographies, it has retained a collective focus on the various areas of corporate sustainability that impact the environment, people and their health and society at large. As a policy, all its businesses promote and encourage economic, social and educational development within their communities while also giving active support to local initiatives. With economic growth, stakeholder expectations have also grown and hence, as compared to last year, the Group’s focus on the area of Corporate Social Responsibility (CSR) stresses more on social and environmental sustainability, social welfare, sport and inclusive growth, in an attempt to ensure that its successes are shared by all its constituents.

From the policies on corporate accountability, drug abuse and alcohol, HIV prevention to a Code of Conduct which the company extends to its stakeholders, issues like ethics too are interwoven in the daily course of Tata Steel’s business. CSR is an integral component of its business strategy and constitutes one of the Company’s key enterprise processes.

Towards a Sustainable Future

Within Tata Steel and other industries, as the demand for unskilled and semi-skilled labourers is reducing, the company is continually working to help local people harness resources and skills available towards sustainable livelihood opportunities, in rural and urban areas.

In India, the Tata Steel Rural Development Society (TSRDS) has focussed on improving agricultural productivity. This year, two major pilot projects were initiated. In the first collaborative project with the Agriculture Consultancy and Management Foundation, Chennai, interventions in approximately 20 acres, resulted in increased productivity of 2.25 tonnes per acre in the first year of the initiative against the target of two tonnes per acre.

The second pilot project on dry land farming with the International Crop Research Institute for Semi Arid Tropic, Hyderabad, developed nearly 22 acres of land resulting in increased yields. In addition, 2800 acres of wasteland have been developed. The second and third croppings in about 3300 acres of land, have been facilitated through 65 water harvesting structures.

The Land and Water Management programme was initiated in the Ganjam district of Orissa. TSRDS took up the job of reviving non-functional lift irrigation systems, covering over 720 acres of land which benefitted 1400 families.

The Company is also training 3000 youths in different kinds of vocations to help them develop several skills. 780 youths from Kalinganagar in Orissa and Chhattisgarh have successfully found jobs.

As a platform to link rural craftsmen and women with potential markets and customers, Tata Steel hosted the 17th Gramshree Mela in March 2009. In this extremely successful initiative, a total of 209 stalls were put up with artisans displaying artefacts from 20 states of India.

Over the past 30 years, the TSE subsidiary UK, Steel Enterprise has provided finance and premises, together with help and advice, to more than 4200 growth businesses to support the economic regeneration of communities affected by changes in the steel industry. The total financial support is over £72 mn with over £50 mn in direct investment, which has enabled these businesses to create over 68,000 new jobs. Projects supported since April 2008 include financial support for community centres and sports projects such as the Stephen Harrison Academy, which uses sport to improve the lives of disadvantaged young people, sponsorship of youth activities such as a new Creative Training Academy project and the Lanarkshire final of the 2008 Prince’s Scottish Youth Business Trust ‘Young Entrepreneur of the Year’ Awards, a grant to improve facilities for Middlesbrough’s South Bank community and help residents find employment.

Over the last fiscal, NatSteel Australia Pty Ltd. donated $5000 to the Victorian Fire Appeal for the victims of the Victorian bush fires in February 2009.

The Sports & Recreation Club of NatSteel Holdings raised an amount of $53,500 which went into the purchase of a handicapped modified van. The company also launched its pilot CSR Leave project which entitles the staff to pro-rate one day leave per year to carry out activities with their adopted charities.

NatSteel Xiamen Ltd. (China), in May 2008, as part of their social sustainability programme, gave the Xiamen Red Cross Society an RMB $160,000 cheque in aid of the Sichuan Earthquake victims. Its employees also donated an RMB $80,000 check to the same.

The Siam Industrial Wire Co. Ltd. (Thailand) undertook the Watdonchan School Project and renovated the canteen, computer room along with the playground. The company also initiated the Bankhai Technical College & SIW Dual Vocational Training project where they trained students for specific careers in SIW.

The Wuxi Jinyang Metal Products Company donated RMB 120K for the disaster of earthquake in Sichuan province and NatSteelVina Co. Ltd. (Vietnam) donated to flood efforts in Bac Giang and Vinh Phuc Provinces.

Giving Back to the Community

Since its inception, Tata Steel has been working towards improving the quality of life in its areas of operations.

In India, Project RISHTA (Regional Initiative for Sexual Health by Today’s Adolescents) safeguards the youth from adverse effects of teenage pregnancy, sexual abuse and disease. This year, it reached out to 24,000 youth. 7750 children were immunised and 8400 women were covered through antenatal check-ups. Over 1640 cataract operations were also conducted. During the year, over 7000 couples were protected through permanent methods of family planning.

As part of the HIV/AIDS interventions, counselling at Sneh Kendra, Jamshedpur, has helped over 1440 ‘at risk’ people. Under Project Kavach, various media events, counselling sessions and Khushi clinics were organised throughout the year to minimise the risk of HIV/AIDS among truckers.

The Port Talbot steel plant of Tata Steel Europe welcomed Alexander Rose, the founder of the STOP (Solve This Ongoing Problem) Knife Crime campaign, to witness the destruction of 729 knives, blades, swords and axes handed in a knife amnesty in 2008 and their recycling into new steel slab.

During the year, Tata Steel Thailand organised an environmental conservation camp for 50 students and provided for rebars for the Yuwawitsawakornbopit 36 Bridge Construction Project operations. It also provided life bags for flood victims in Tambon Khao Sam Yord Lopburi Province and to the victims in Amphur Bangban, Ayudhya Province as well.

A Focus on Literacy and Education

Tata Steel has endowed a Professorship of Metallurgy in the Department of Materials, Science and Metallurgy at the University of Cambridge. The first holder of the chair, inaugurated in November 2008, is Dr. Harry Bhadeshia, a world-renowned expert on the physical metallurgy of steels. The endowment recognises the commitment of Tata Steel and the University to world-leading research in the field.

In India, the Company continued its efforts to improve literacy rate and has taken several initiatives to attain ‘education for all’ with a specific focus on rural and urban slum children, girls and youths from scheduled castes and tribes. In the urban areas, out of about 570 students who were enrolled in 12 centres, over 380 students (67%) have been integrated into formal schools. In the rural areas, 22 centres catered to 550 children in the age group of 3-6 year with a 100% success rate for 110 students in the 5-6 age groups. To help the underprivileged girl children enter the mainstream, a Camp School programme was initiated with the help of Jharkhand Education Project. This nine-month intensive learning course for students aged 9-14, helps them complete education up to the 5th standard and qualify for admission to class VI. Through adult literacy programmes, over 3800 persons were made functionally literate. Financial assistance programme for meritorious students under the Jyoti and Moodie Scholarships covered 660 students in FY 09.

In January 2009, the management and staff of NatSteel Holdings volunteered at the award presentation ceremony of the Society for the Physically Disabled (SPD) Education Programme. A cheque of SGD $50,000 was also presented as part of the bursary awards to the disabled students.

Towards Environmental Sustainability

Tata Steel’s approach to environmental management has been guided by the Tata Code of Conduct (Clause 8: Health, Safety & Environment), the Tata Steel Environmental Policy and the UN Global Compact Principles. Tata Steel is progressing well towards it key goal of CO₂ emission reduction.

In India, a project on Renewable Energy for Rural Livelihoods (RERL) was launched in 2006 in five villages. The major include 255 solar home lights, 21 street lights, 240 biogas plants and five woody biomass gasifiers. The project is being replicated in 10 more villages of the district covering 843 households. In the year 2008-09, 130 biogas plants have been constructed in three villages.

TSE and its supply chain management provider TDG, have unveiled a new trailer to reduce carbon emissions. This trailer has been designed to carry steel loads of various shapes and sizes and will further reduce ‘empty running’ as it offers increased versatility. TSE has cut a million truck miles a year, saving 1315 tonnes of CO₂ emissions and 500,000 litres of diesel.

REACH is a new European Union regulation concerning the Registration, Evaluation, Authorisation, and restriction of Chemicals. An important step in the REACH process is to collect all relevant (eco) toxicological information of substances so they can be manufactured and used in a safe way. Recognising its commitment to REACH, TSE has been working since June 2007 to comply with the regulation.

TSE is the largest steel recycler in the UK. Corus Steel Packaging Recycling promotes steel packaging recycling to consumers, local authorities and the commercial sector, and offers an established end market for recovered used steel packaging.

Climate change is one of the most important issues facing the world today. In 2008, the Group launched its Climate Change Strategy, which recognises that the steel industry is a significant contributor to man-made greenhouse gas emissions as the manufacture of steel unavoidably produces carbon dioxide (CO₂). It continues to improve its current processes to increase its energy efficiency and to reduce its carbon footprint, with a goal of reducing CO₂ emissions per tonne of liquid steel by at least 20% (to less than 1.5t/tls) by 2020 compared to 1990 levels. In February 2008, TSE announced an investment of £60 mn in energy management technology at its Port Talbot site, an investment that will reduce CO₂ emissions from 2009 onwards. In addition to these improvements, TSE is also working with other steel makers in Europe on a major research and development project, ULCOS (Ultra-Low CO₂ Steel making) to investigate new technologies that could bring about a step change reduction of 50% CO₂ emissions per tonne of liquid steel by 2050.

NatSteel Holdings increased the use of NEWater (recycled water) in operations, to be ‘greener’ in its use of water. It is also in the process of building a baghouse to collect all fugitive dust generated from the scrap melting process.

NatSteel Australia Pty Ltd. implemented an energy audit/tracking programme this year and reduced the use of multi-machine servers. It also installed rainwater tanks to harvest rainwater.

The Siam Industrial Wire Co. Ltd. began its Stop Global Warming project, in which employees, 350 government officers, teachers, students and residents from the nearby communities planted saplings at the Nong Plalai Reservoir and Rayong Province.

Well-being Through Sport

The Tata Steel Group has always actively encouraged and supported sport in multiple ways. From corporate sponsorship of promising sports persons, to making available sporting facilities to people across socio-economic stratas.

In India, Tata Steel runs residential academies of Football, Archery and Athletics and a majority of players in the Indian Football Team are from the Tata Football Academy (TFA). Tata Archery Academy students have already won medals at an international level and a Tata Athletics Academy student won a Bronze Medal at the Doha Asian Games.

Besides residential academies, Tata Steel also runs training centres in different sports disciplines for the community where over 500 children are trained regularly. From the Boxing Training Centre, Anthras Lakra went to the Beijing Olympics.

As a corporate partner of the British Triathlon Federation, TSE is committed to the development of triathletes from grassroots level through to potential Olympic champions. Since the start of its involvement with triathlon in 2006, it has helped British Triathlon build an environment that enables the sport and its participants to be the best that they can. TSE employees have volunteered at these events, getting local schools involved and helping to set up children’s triathlon clubs. Over 7,000 children have taken part in the series so far.

Corus has teamed up with Study United to create the Corus Goal Challenge – an exploration of science, technology, engineering and mathematics in the world of sport for primary schools across North Lincolnshire. Pupils were challenged to design, build and test models of floodlights for Scunthorpe United Football Club and suggest the boots, players should wear on different pitch surfaces.

The 71st Corus Chess Tournament 2009 took place at Wijk aan Zee in the Netherlands in February 2009. The Tournament is one of the leading chess competitions in the world and the 2009 grandmaster participants include 14 of the world’s top chess players.

Affirmative Action

Tata Steel is fully committed to the need for growth and development of Scheduled Castes (SCs) and Scheduled Tribes (STs) in a spirit of Affirmative Action. Though Affirmative Action was declared as a Policy in 2006 by the Government of India, Tata Steel has been practising it for over three decades now. Its focus population includes the SC/ST communities in Singhbhum (East & West) and Sareikela-Kharsawan in Jharkhand. An important initiative is the socio-economic development project at primitive tribe villages for which four hamlets, two each of Birhor and Savar have been identified, a detailed socio-economic survey conducted, and project implementation has been initiated in areas of sustainable livelihood, education, health and sanitation.

Tata Steel contributed towards the development of a self-learning kit for the Santhali language in collaboration with Santhal Engineers’ Welfare Association, a group of Santhal professionals. The package is geared at the revival of Santhali language and comprises of basics of alphabet, elementary grammar, vocabulary and math to enable learners to read and write.

“Humata, Hukhta, Hvarshta” – These words in the ancient Avestan language, are inscribed on the crest of the founder of Tata Steel, Jamsetji Nusserwanji Tata. They mean: Good Thoughts, Good Words and Good Deeds. These words form the essence and the driving force of the Corporate Citizenship philosophy of Tata Steel, which amply communicates to all its stakeholders that “… what comes from the people goes back to the people …”