Vedanta hit with warning by APG Asset Management for Non-Disclosure of ESG Issues
|July 31st, 2010||
|Contributed by: CRD Analytics|
|More and more companies are feeling intense pressure from investors to increase their level of transparency and more actively manage global ESG challenges.|
Vedanta Resources, a London-based diversified metals and mining company, has been in the news this week as APG Asset Management raises the stakes in their fight for improvements around environmental and human rights issues. The money manager has abstained from voting in Vedanta's Wednesday meeting because improvements have not been sufficient in disclosing operations to outsiders. Other asset management firms have recently withdrawn capital because Vedanta has not taken the necessary steps in improving their ESG efforts. Social and environmental groups joined the fight through protests at the annual shareholders meeting over the proposed mining project in Orissa, India.
Regarding the Indian region set to be developed, Vedanta's Chairman, Mr. Anil Agarwal states; "Kalahandi is one of the most underdeveloped districts in India... We are committed and sensitive to the social and cultural aspects of the region and would do whatever is required to meet the needs of local people." The company plans to improve the current state of affairs through responsible development and environmentally conscious practices.
In actuality, Vedanta plans to build a Bauxite mine on the homeland of the Dongria Kondh people who consider this region sacred and do not want to give it up at any cost. Protesters direct criticism toward the company, alleging environmental pollution and human rights violations. In addition, stakeholders have been critical of the miner's lack of strategic management and transparency on social and environmental issues.
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