Vedanta rapped by UK body over environmental, social and governance issues

WASHINGTON - U.K.’s Local Authority Pension Fund Forum (LAPFF) has reportedly said that Vedanta Resources PLC should implement the International Council on Mining and Metals Sustainability Development Framework and appoint an independent non-executive director.

“The Vedanta experience is clear evidence of why laggards ignore environmental, social and governance issues matters at their peril and to the detriment of their shareholders. Good management of these issues can clearly have a direct impact on business strategy and, by extension, financial performance,” The Wall Streets Journal quoted LAPFF chairman Cllr Ian Greenwood, as saying.

“As shareholders increasingly embrace their ownership responsibilities, these sorts of issues are only going to gain more importance,” he added.

Last week, India’s Environment Minister, Jairam Ramesh, rejected Vedanta’s plans for the proposed bauxite mining project in the eastern state of Orissa stating that Vedanta had breached environmental protection acts and raised concerns for the rights of local tribes. Vedanta’s share price fell sharply in response.

The LAPFF is a voluntary association of 52 U.K.-based public sector pension funds that aims to promote corporate responsibility. (ANI)