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Defining our priorities through materiality

Materiality enables us to identify, prioritise, track and report the most important sustainability issues. To identify the top 20 environmental, social and governance (ESG) issues, we conducted an extensive stakeholder engagement exercise in FY 2018-19. These issues were rated as ‘high priority’ by stakeholders, in addition to being key to business success in the short, medium and long term. The material economic issues were revisited through various stakeholder engagement processes and business reviews by the senior leadership.

Tata Steel’s strategy and planning process incorporates the material issues by mapping them to its long-term Strategic Objectives (SOs). These issues are reviewed periodically by the respective owners and by the senior management.


Material issues Measures Linked key performance indicators (KPI)

Business growth

Focus on organic and inorganic growth

Scaling of adjacent businesses

Entering into new market segments

Crude steel production capacity

Revenue from the New Material Business, Service & Solutions, Commercial Mining Business

Revenue from High End and Downstream products and solutions

Long-term profitability

Attain and retain leadership in chosen segments

Raw material security

Enhance operational efficiency

Shikhar25 cost management initiatives

Market share in chosen segments

Captive coal (%) and captive iron ore (%)


Savings through Shihkar25 initiatives

Product and service quality

Product and process innovation

Value engineering and customer service teams

Innovative routes to market

Number of new products and services

Customer satisfaction index

Quality complaints

Revenue from sales on digital platforms


Material issues Measures Linked KPIs

CO2 emission

5 Tonne Per Day (TPD) carbon capture pilot plant commissioned at TSJ – captured CO2 being utilised for water treatment at a steelmaking unit

Collaboration with SHELL and Council for Scientific and Industrial Research (CSIR) to explore decarbonisation technologies

GHG emission intensity

Total GHG emissions for steel making sites

Air pollution

Upgradation of existing air pollution control equipment and installation of state-of-the-art dust control technology

Dust emission intensity

Water consumption and effluent discharge

Minimising freshwater consumption by upgradation of existing water treatment and cooling tower systems to increase efficiency

Reusing treated waste water from sewage and effluents for industrial purpose

Specific freshwater consumption

Effluent discharge intensity

Energy efficiency

Process optimisation initiatives such as waste heat recovery systems, top recovery turbine by-product gas utilisation

Energy intensity

Renewable and clean energy

Feasibility analysis for solar projects completed and projects initiated

Renewable purchase obligation

Power generated through renewable sources

Waste management

Enhance steel scrap usage in steelmaking

100% solid waste utilisation

Enhance value from by-products

Steel scrap supplies to LD shops

LD slag utilisation

Solid waste utilisation

Revenue from by-products

Supply chain sustainability

Identification of critical supply chain partners and engagement with them on Tata Steel Responsible Supply Chain Policy

Number of partners made aware on Tata Steel Responsible Supply Chain Policy

Number of partners assessed on Tata Steel Responsible Supply Chain Policy


Biodiversity Management Plans (BMPs) for Jamshedpur and Kalinganagar developed (BMPs developed for 11 locations cumulatively till FY 2020-21)

Over 2.98 lakh saplings of native species planted across locations in FY 2020-21

Total sites covered under BMPs

Circular economy

Steel scrap processing unit commissioned at Rohtak, Haryana with a 0.5 MnTPA capacity

Advocacy with various government and industry bodies to build scrap utilisation networks

Capacity of steel recycling business


Material issues Measures Linked KPIs

Occupational Health and Safety (OHS)

Build Safety Leadership capability at all levels to achieve zero harm

Improve competency and capability for hazard identification and risk management

Achieve zero harm to contract employees by strengthening deployment of Contractor Safety Management Standard

Reduction in safety incidents on road and rail to ensure zero fatalities inside plant premises

Excellence in Process Safety Management (PSM)

Establishment of industrial hygiene and improvement in occupational health





Health Index

Labour relations

Concluded wage revision with structural changes

Introduction of Connected Workforce Management, POD working system (for COVID-19) and People Care to ensure employee safety

Performance in Employee Engagement Survey

Drinking water

Enabling community-led access to safe drinking water for identified households

Number of water harvesting structures constructed/repaired

Number of lives reached

Local sourcing of labour

Recruiting indigenous (SC/ST) people in the workforce

Improving vendors’ share of business from SC/ST communities by training them to match our requirements for various products and services

Number of local suppliers

Business volume of local suppliers

% of Affirmative Action (AA) community in the workforce

Talent retention

Provide flexibility to employees through agile working policy

Creating an inclusive workspace to attract and retain diverse talent including Persons with Disabilities (PWDs) and LGBTQ+ community

Development of workforce capability through various programmes

Attrition rate (overall)

Percentage of women in workforce

Investment in employee training and development


Material issues Measures Linked KPIs

Technology, product and process innovation

Focus on technology, digital and disruptive innovation overlaid on a culture of continuous improvement

Addressing environmental concerns by developing and implementing breakthrough technologies progressively at larger scale

Building a sustainable business portfolio, which is resilient against steel business cyclicality

Number of patents received

Number of new products developed

Number of start-ups engaged

Number of alliances created

Number of breakthrough projects

Going beyond compliance and setting trends for future regulations

Setting up Steel Recycling Business (SRB) for foray into organised scrap play in India

Adoption of best available technologies and implementing projects for resource efficiency and reducing carbon footprint

Strengthened collaborations with technical institutes, technology start-ups and academia for technology leadership, climate change and other environmental issues

Diversity and Inclusion Policies for women in workforce, persons with disabilities (PWDs) and LGBTQ+ community; for example, women in all shifts in mines

Capacity of SRB

Performance on various environmental parameters – air, water, waste

Number of collaborations with external partners

Workforce diversity indicators - % women/PWDs/LGBTQ+ in workforce

Greater sustainability disclosures

Consistent improvement in our disclosures through the Framework, worldsteel indicators and UNGC Communication on Progress

Engagement with ESG rating agencies for improving disclosure practices and enhance access to sustainable finance

Updating Tata Steel website periodically to enhance transparency and meet stakeholder requirements

Scores and achievements in:
DJSI assessment
worldsteel recognitions

ESG ratings

Greater stakeholder engagement

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

Setting up special COVID-19 care helplines and medical facilities

Performance in various surveys conducted periodically for Stakeholder categories, including:
Customer Satisfaction Survey
Vendor Satisfaction Survey

Responsible advocacy for the steel and mining sector

Effective policy formulation to improve the ease and cost of doing business in our areas of operation by ensuring a level playing field and advocating global best practices.

Advocacy for improving cost of doing business and ease of doing business

Technical knowledge transfer and capacity building for relevant partners

Collaboration with suppliers through Supplier Relationship Management Programme

Conduct Vendor Capacity Advancement Programmes (VCAP) for suppliers

Engagement with customers through Early Vendor Involvement (EVI) and Value Analysis and Value Engineering (VAVE) initiatives

Awareness sessions for suppliers, Steel Processing Centres (SPCs) and distributors on Ethics, Health and Safety, Responsible Supply Chain Policy and other relevant issues

Number of VCAP sessions conducted

Number of awareness sessions conducted

Number of supply chain partners made aware on Responsible Supply Chain Policy

Number of EVI and VAVE projects

Strategic objective


Leadership in India


Consolidate position as global cost leader


Attain leadership position in adjacent businesses


Leadership in sustainability


Financial capital
Manufactured capital
Intellectual capital
Human capital
Natural capital
Social and Relationship capital