Steel Authority of India : Sail Sustinability Report 2022-23

Corporate Sustainability Report - 2022-23

Message from

Chairman's Desk

Dear Stakeholders,

I am happy to present to you all our 13th Corporate Sustainability Report for the year 2022-23 featuring our performance on important fronts viz., economic, environmental, societal and governance. In a cyclical industry such as Steel, our inherent strength and our endeavour to work on our core areas in the recent past are what give me the optimism and belief that our aspiration to be Number One-as an organisation which can be benchmarked by our peers, is achievable.

Amidst the global business adversities and Geo-political disruptions, SAIL was resilient enough to counter the hindrances by improved capacity utilization and optimization of resource utilization. Further, focusing on the improvement of operating practices in the mines and realigning customer demand to optimize the product mix, have helped SAIL mitigate risks arising from volatility in the market.

All the Integrated Steel Plants achieved their best-ever production, leading to the best ever Crude Steel capacity utilization of about 94%. During the Financial year 2022-23, the Company achieved Saleable Steel Sales Volume of around 16.21 million tonnes, registering a marginal growth over the previous year.

We are really proud that Company's branded products like "SAIL SeQR" for TMT bars have been continuously growing over the period. With sales of 5.6 Iakh tonnes of "SAIL SeQR" TMT bars during FY'23 compared to 3.8 Iakh tonnes in the previous year, a growth of about 47% was registered. In addition, the brand 'NEX' for Structural is also being promoted. With a view to facilitating the procurement of TMT bars for retail customers, an online portal "SAIL SURAKSHA" was launched with a tagline "Ab Nishchint ho Jayein".

To encourage the MSME segment in steel procurement, SAIL, under the "Mission Poorvodaya" programme of the Government of India, has launched an incentivization scheme, "Ispat illlakon ka Vikas - SAIL ke Saath," for MSMEs based in districts where its Integrated Steel Plants are located.

(GRI 2-22)

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Fostering Sustainable Growth

Continuing its commitment to contribute to nation-building by catering to infrastructure projects and projects of national importance, SAIL supplied the entire of DMR grade specialty steel for India's first indigenously built Aircraft Carrier, INS Vikrant. Commissioning this carrier signifies the Country's confidence and self-reliance. Additionally, substantial quantities of steel were also supplied to notable projects such as the Subansiri Lower Hydroelectric Project (SLHEP) on the Assam-Arunachal border, the Crude Oil Import Terminal (COIT) at Paradip, and several key infrastructure developments across the Country.

SAIL's contributions as a responsible corporate citizen have been acknowledged in various forums, earning accolades and awards. Among these, SAIL emerged as the topmost CPSE buyer on GeM for FY'22, and the Environment Management Division was honoured with the Greentech Environment Award 2022.

Being environmentally conscious, all the Plants and Mines of your Company operate in harmony with the ecological balance, adhering to the Corporate Environmental Policy. This policy emphasizes compliance with environmental standards and encourages efforts to exceed them. SAIL operates within established environmental parameters concerning air emissions, water discharge, and noise pollution. We have identified focus area viz. enhancement of raw material quality, productivity and compliance, decarbonisation and digitization in manufacturing, mining and supply chain with ambitious goals and are currently drawing out actionable efforts for operation excellence and flexibility.

SAIL is transitioning to energy-efficient and durable LED lighting in line with the Government of India's Unnat Jyoti by Affordable LEDs for All (UJALA) Scheme." Approximately 6.98 lakh LED lights have been installed across Company's Plants and Units, and all future projects will exclusively use LED lighting systems.

Focusing on Corporate Social Responsibility (CSR) objectives as stipulated in the Companies Act, 2013, as well as DPE Guidelines, our Company prioritized areas of national importance such as Education, Health, Skills Development, and Women Empowerment. During FY'23, SAIL supported the entire Indian contingent of Special Olympics Bharat's athletes at the Special Olympics World Summer Games, Berlin, 2023.

In closing, I seize this moment to extend my heartfelt gratitude to all our Shareholders for their unwavering trust and support. I appreciate our esteemed Customers, reliable Suppliers, and the Governments at both the central and state levels. Special acknowledgment goes to our dedicated employees and contractual workers for their relentless commitment and enduring efforts in moulding a robust and accountable organization.

I extend particular thanks to the Ministry of Steel for their continuous guidance and support.

To all our stakeholders who have played an instrumental role in fortifying this Company's foundation, making it resilient and sustainable, I express my sincere gratitude. I earnestly anticipate and value your continued support and best wishes.

Jai Hind.

With best compliments

(Amarendu Prakash)

Chairman

(GRI 2-22)

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Corporate Sustainability Report - 2022-23

OUR VISION

To be a respected world class corporation and the leader in Indian steel business in quality, productivity, profitability and customer satisfaction.

OUR CREDO

• We build lasting relationships with customers based on trust and mutual benefit.

• We uphold highest ethical standards in conduct of our business

• We create and nurture a culture that supports flexibility, learning and is proactive to change.

• We chart a challenging career for employees with opportunities for advancement and rewards.

• We value the opportunity and responsibility to make a meaningful

difference in people's lives.

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Corporate Sustainability Report - 2022-23

About the Report

(GRI 2-2)

Period

(GRI 2-2)

SAIL has been regularly publishing its Annual Sustainability Report since FY 2010-11 and is pleased to now present its 13th Sustainability Report for FY 2022-23. All Sustainability Reports have integrated the business operations in an ethical and transparent manner while reinforcing commitment towards sustainable development, keeping interests of the Company's Stakeholders at the forefront. The report has information on the material topics significant for SAIL's business as well as for the stakeholders.

Reporting Year & Cycle

(GRI 2-3 a, b, c)

The present report covers sustainability performance of the Company for the period April 1, 2022 to March 31, 2023. This report is in continuation to the earlier report published for the FY 2021-22. The report can also be downloaded from SAIL website (www.sail.co.in).

Framework

All Corporate Sustainability Reports of SAIL have followed the GRI Reporting framework. The top management has decided to continue to use the GRI Standards for FY 2022-23 also. This report has been prepared in accordance with the GRI Standards 2021. The report has been prepared to disclose Company's performance on Economic, Environmental, Social and Governance topics to its stakeholders.

Fostering Sustainable Growth

Scope

(GRI 2-3b,2-4,204-1 b, c)

Information from the Annual Report of the Company for the Financial Year 2022-23, ending March 31, 2023 has been used for presenting financial details in the economic performance section of this report and social and environmental performances of Plants, Units and Mines (operating) located in India in the respective sections. Pages 10-11 of the report gives information on the boundary of the report covering inter-alia Plants, Units and Mines. In this report, the local implies operation in India. No unit has been shifted, divested or closed during the FY 2022-23. SAIL is transparent in sharing all significant events of the past and the projections of their impacts to occur in future. The Company maintained the data quality of the report while ensuring accuracy, reliability, timeliness, clarity and comparability of figures and periods that form the base of reporting.

Standards

International Standards such as ISO 9001, ISO 14001, ISO 45001 and SA 8000 have been used for reporting on Quality, Environment, Health and Safety Management and Social Accountability. For reporting financial performance of the Company, the Company Law guidelines have been referred to. The Company ensures commitment to Economic and Financial systems by regularly under taking the statutory audits as well as internal audits. Our systems are open to verification and review by the government authorities. For reporting on Carbon Dioxide (CO2) emissions from our Integrated Steel Plants (ISPs), we follow the World Steel Association (WSA) guidelines and calculation methodologies. For maintaining the Company's work environment and safety regulations, we diligently follow requisite regulations issued from time to time by the Ministry of Environment, Forest and Climate Change (MoEFCC) and the Factories Act, 1948. Materiality Assessment has definitely helped us in prioritizing issues pertaining to economic, environment and social aspects of Sustainability and stakeholder engagement process. The material topics, explained in the respective chapter, are established through this materiality assessment process.

Data Validation and Assurance

(GRI 2-5a, b, 2-3d)

No External Assurance was carried out for this report

The full report has been prepared using English Language. The report can be requested via email too. Stakeholder feedback on the report shall be reported to the relevant department upon its receipt via email. Any other additional information about SAIL's efforts on sustainable development can be sought at sailsustainability@gmail.com

SAIL Supplied Special Steel for India's Indigenous Navy warship INS Udaygiri