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MATERIAL ISSUES
Focussing on issues that matter
Tata Steel’s strategic planning process incorporates the economic, environmental, social, and governance material issues relevant for -the long-term growth and financial success of the Company.
The material issues are taken into consideration while defining and executing our strategic objectives. While the Environmental, Social and Governance (ESG) related material issues have been arrived at through an exclusive and extensive stakeholder engagement process, the economic material issues have been revisited through various stakeholder engagement processes and business reviews by the senior leadership.
Addressing ‘Focus’ issues
‘Focus’ issues are incorporated in the strategy and planning process. These issues are reviewed monthly by the issue owners and quarterly by the senior management, and reported in the Integrated Report. The material issues related to all the capitals are tracked and reported to the senior management on a quarterly basis. Exceptions on any of the parameters are reported on an interim basis. Among the material issues, we target to achieve specific carbon emission of <2 tCO2/tcs, 100% waste utilisation, zero effluent discharge and doubling of our CSR reach by 2025 as part of this strategy.
HOW WE IDENTIFIED MATERIAL ESG ISSUES
Tata Steel conducted a pan-India exercise to identify the ESG issues that are material to value creation, by engaging with close to hundred stakeholders viz. customers, investors, suppliers, shipping and logistics partners, media, industry associations, government and regulatory bodies, employees including contract employees and union leaders, and community representatives. The findings were then classified into the ‘Focus’ (high), ‘Track’ (medium) and ‘Discuss’ (low) categories.
ESG material issues
HOW WE ARE ADDRESSING MATERIAL ISSUES
| Economic | |||
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| Strategic Objectives | |||
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| Capitals Impacted | |||
 
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| Material issue | |||
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Business growth |
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Long-term profitability |
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Product quality, price offerings and delivery |
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Focus on organic and inorganic growth New materials business (Fibre Reinforced Polymer and Graphene) Service and Solutions business Foraying into newer segments such as oil & gas, lifting and excavation Increase sales of downstream products |
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Maintain leadership in chosen segments Enhance raw material security Operational efficiency enhancement Shikhar25 cost management initiatives |
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Product and process innovation Value engineering Customer service teams and delivery centres |
SO1 - Industry leadership in steel
SO2 - Consolidate position as a global cost leader
SO3 - Insulate revenues from steel cyclicality
SO4 - Industry leadership in CSR and SHE
| Environmental | |||
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| Strategic Objectives | |||
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| Capitals Impacted | |||
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| Material issue | |||
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E1
Renewable and clean energy |
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E2
Waste management |
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E3
Water consumption and |
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E4
Energy efficiency |
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E5
Air pollution |
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E6
Supply chain sustainability |
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E7
CO2 emission |
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E8
Biodiversity |
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E9
Circular economy |
| Key actions | |
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Focus initiatives on harnessing clean and renewable energy and adopting waste heat recovery technology |
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Recovery and reuse of metal from steelmaking slag Nearly 100% utilisation of LD slag Advocacy with various government and industry bodies to build scrap utilisation networks |
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Striving towards future readiness by investing in sewage treatment plants and creating new rain water harvesting structures |
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Focus on energy efficiency through process optimisation initiatives such as waste heat recovery systems and by-product gas utilisation |
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Investment in air pollution control equipment to reduce dust emission intensity |
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Embedding sustainability across the supply chain |
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Piloting Carbon Capture and Use (CCU) at Jamshedpur works and at the Ferro-Chrome plant, and assessing renewable energy potential across all locations in India |
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Reclamation of mining activities |
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Adoption of circular economy concepts to maximise the utilisation of our by-products |
| Social | |||
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| Strategic Objectives | |||
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| Capitals Impacted | |||
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S1
Occupational health & safety |
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S2
Labour relations |
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S3
Drinking water |
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S4
Local sourcing of labour |
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S5
Talent retention |
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Leadership capability development for safety at all levels to achieve zero harm Identification and mitigation of hazards and risks Reduction in safety incidents on road and rail to sustain zero fatalities inside plant premises Excellence in Process Safety Management (PSM) Establishment of industrial hygiene and improvement in occupational health |
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Robust grievance mechanism Implementation of the Human Rights Policy, principles of SA8000, Universal Declaration of Human Rights (UDHR) and ILO convention |
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Installation and repair of drinking water facilities |
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Implementation of Affirmative Action Plan |
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Development of workforce capability through various programmes and fostering a diverse workforce through our MOSAIC framework |
| Governance | |||
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| Strategic Objectives | |||
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| Capitals Impacted | |||
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G1
Going beyond compliance |
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G2
Greater stakeholder engagement |
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G3
Greater sustainability disclosures |
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G4
Technology, product and |
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G5
Technical knowledge transfer |
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G6
Responsible advocacy for the steel |
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Collaborations with technical institutes and technology start-ups |
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Enhancement of specialised channels such as public meetings, vendor-focussed committees, Speak UP toll-free number, platforms such as conference and construction conclave, zonal and similar events |
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Consistent improvement of our disclosures through GRI, |
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Process innovation such as High Gradient Magnetic Separator (HGMS) for iron ore slime beneficiation Product innovation such as Pravesh Vista steel windows and graphene-doped plastic products |
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Conduct of Vendor Capacity Development (VCAP) programmes |
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Engaging with the industry bodies and peer networks in sharing best practices, training, research and ideas that enhance the overall performance of the industry |
Financial Capital
Intellectual Capital
Natural Capital
Manufactured Capital
Human Capital
Social & Relationship Capital
