JSW has a strong business conduct model which encompasses its corporate governance, materiality assessment, stakeholder engagement, reporting and disclosures as per the statutory norms and risk management.

Corporate Governance

With the aim to ensure that the Company keeps the stakeholders’ interests at the centre of all operations and business decisions, JSW Steel follows a stringent corporate governance policy. Transparency and openness are the core principles of corporate governance at JSW Steel and it has established a corporate governance structure that works towards achieving sustainable growth in the medium- and long-term.

The Board of Directors oversee the overall functioning of the Company. They also provide and evaluate the strategic direction of the Company, management policies and their effectiveness and ensure that the long-term interest of the stakeholders are being served. The Chairman and Managing Director is assisted by the Executive Directors/ Senior Managerial Personnel in overseeing the functional matters of the Company.

Board of Directors: The Company’s Board of Directors consists of global thought leaders who create trust by example. They ensure that the highest levels of corporate governance are practiced through the organization. The Company’s Board comprises:

• Chairperson Emeritus - Mrs. Savitri Devi Jindal
• Chairman & Managing Director, Non-Independent Executive Director - Mr. Sajjan Jindal
• Joint Managing Director & Group CFO, Non-Independent Executive Director - Mr. Seshagiri Rao M.V.S.
• Executive Director - Dr. Vinod Nowal (Superannuated)
• Deputy Managing Director - Mr. Jayant Acharya
• Two Nominee Directors - Mr. Hiroyuki Ogawa & Dr. M.R. Ravi, IAS
• 5 Independent Non-Executive Directors - Dr. (Mrs.) Punita Kumar Sinha, Mr. Haigreve Khaitan, Mr. Seturaman Mahalingam, Mr. Harsh Charandas Mariwala, Mrs. Nirupama Rao
• Additional Director (Independent) - Ms. Fiona Jane Mary Paulus

This Board of Directors are from diverse backgrounds with rich experience in either the industry, finance, or policy-making which enables them to instill hope and confidence about the future and make employees feel enthusiastic and proud of being part of the journey. They are the leaders who are helping translate JSW’s vision into a reality.

 

Sustainability Policies

Sustainability issues such as Climate Change, Water, Waste, Biodiversity, etc. are likely to affect our sites, or our Group as a whole. To define the certain expectations for management of environmental issues and improving our environmental performance, we have devised our sustainability policies which includes Climate Change Policy, Waste Management Policy, Water Management Policy, etc. Our sustainability policies drive our sustainability management practices at all our operations, business facilities, suppliers and service providers, distribution & logistics and other key business partner. Our endeavor is that our sustainability policies encompass our due diligence process for mergers & acquisitions.  The policies showcase our commitment to ensure compliance with laws and regulations, setting targets and improve our environmental performance. They also showcase our commitment to conducting trainings and awareness sessions for our internal and external stakeholders including employees, for the sustainability policies, as well as the impacts of their work activities on the environment and society. These are available on our website at JSW - Sustainability - Policies. The implementation of these Sustainability Policies is the responsibility of the respective business heads, with the monitoring and tracking done by the Climate Action Group, under the guidance of the Business Responsibility / Sustainability Reporting Committee of the Board.

Reporting & Disclosure

The Company is committed to pursuing its business objectives ethically, transparently and with accountability to all its stakeholders. The Company believes in demonstrating responsible behavior while adding value to the society and the community, as well as ensuring environmental well-being with a long-term perspective. To adhere to the above said commitments, JSW Steel discloses information related to Environment, Social & Governance (ESG) parameters initiatives taken by the company in its annual Integrated Report.

The Annual Integrated Report is prepared on the guidelines of Global Reporting Initiatives (GRI), and has provided with requisite mapping of the principles of the National Guidelines on Responsible Business Conduct (NGRBC) in order to fulfill the requirements of the Business Responsibility and Sustainability Report (BRSR) framework as per directive of SEBI, and also is in line with the United Nations Sustainable Development Goals.

Risk Management

• JSW has always been proactive in managing its risks as it believes that success in a challenging and dynamic external environment is largely dependent on an organisation’s ability to be agile and respond to changes quickly and effectively. This forms the basis of the risk management process at JSW Steel, which is well geared to identify, assess and manage traditional as well as new-age risks, thereby protecting stakeholder interests, achieving business objectives and enabling sustainable growth. JSW Steel follows the globally recognized Committee of Sponsoring Organisations of the Treadway Commission (COSO) framework for risk management. The Company has constituted a sub-committee of Directors to oversee the Enterprise Risk Management framework. It monitors risks related to performance, operations, compliance, incidents, processes and systems and tracks their mitigation plan till their closure.
• We conduct an independent internal audit of our risk management processes and principles annually. Risk exposure is reviewed twice a year by the Board Risk Management Committee. High risks reported in Risk Management Committee are a part of the internal audit plan and internal audits of those high risks are conducted annually.
• We conduct regular risk management training and awareness sessions for our board of directors and all our employees. The objective is to educate employees on risk management principles and practices, building risk culture and leadership, risk rating, risk assessment process, among others through diverse channels, including seminars, workshops, and online training sessions. In addition to this, we also conduct focused training programs to address the risks of identified material topics such as Health and Safety, ESG, ethics, POSH, Cybersecurity, etc.
• The Board of Directors, during each meeting, is given presentations covering global steel sector scenario, peer analysis, global/Indian economy, significant geo-political events impacting the steel sector, company’s financials, sales, production, business strategy, subsidiary’s performance and risk management practices before taking on record the quarterly/half-yearly/nine monthly/annual financial results of the company. Under the Independent Director familiarization program, independent directors are given presentations of the company's strategies to manage risks as well as monthly updates on performance and any developments which affect the company.
• Enterprise Risk Management (ERM) framework has been rolled out in the entire group. All the designated risk owners are well aware of this Risk Management framework, and new risks are identified by individual risk owners.
• The Company gives thrust on sustainable products that are safe for our consumers. JSW Steel has developed products that are environment friendly & safe for usage like high-strength low carbon steel, low thickness steel used in the auto sector which makes the vehicle lighter and in-turn helps in reducing the carbon footprint while maintaining the safety of the travelers. We also conduct a SWOT analysis to determine any risks before new product development & its approval process.
• We have achieved notable milestones in the domain of Product Sustainability, becoming the first manufacturer to earn the prestigious GreenPro ecolabel for Automotive Steel products. We have also received the GreenPro certification for JSW Neosteel TMT bars and 14 categories of Roofing Sheets. Additionally, we have obtained Environmental Product Declarations (EPDs) for 14 finished products from three integrated steel plants and 5 finished products from three downstream plants, offering reliable and standardised insights into the lifecycle of various products.
• At JSW Steel, all employees’ performance evaluation and promotions are impacted by risk-related performance and other factors. Risk management and compliance with risk procedures are a part of the Key Result Areas (KRAs) of senior management who are designated employees in charge of risk management and is linked to their variable incentives. Safety is a mandatory part of KRA for senior executives with a weightage of 15-25%. The variable performance pay (incentives) is linked to this KRA. The following safety criteria are part of the KRAs for Senior executives: Lost time injury frequency rate (LTIFR, Number of reportable incidents, Zero Fatal incidents, and these are considered during the annual performance appraisal. Safety KRAs are also set for middle and lower management with a weightage of 10-15% & the variable pay of the managers is linked to achieving these KRAs.
• JSW Steel follows the globally recognised Committee of Sponsoring Organisations (COSO) framework for Enterprise Risk Management (ERM) which helps integrate internal controls into business processes. The Risk Management Policy of the Company, which is approved by the Risk Management Committee of the Board and the Board of Directors, provides the framework of Enterprise Risk Management (ERM) by describing mechanisms for the proactive identification and prioritization of risks based on the scanning of the external environment and continuous monitoring of internal risk factors. The ERM framework identifies, evaluates, manages and reports risks arising from the Company’s operations and exogenous factors. The Company has deployed bottom-up and top-down approaches to drive enterprise-wide risk management. The bottom-up process includes identification and regular assessment of risks by the respective Plants/Corporate functions and implementation of mitigation strategies. This is complemented by a top-down approach where the Risk Management Group as well as the Risk Management Committee (RMC) identifies and assesses long-term, strategic, and macro risks for the Company. Risk Severity is determined after considering 2 factors: Impact on Business & Probability of Occurrence. Basis this, a Risk Severity matrix is constructed, and the risk appetite of the company is determined accordingly.

• Overview of the risk management process
  • Risk ownership - There are three main aspects of risk management process, i.e. risk identification, risk assessment and risk response (e.g., avoid, mitigate or retain). Identification, assessment, response and tracking of risks under their control are ensured by the risk owners (HODs) at respective locations. Risk is identified by the risk owners at the plant level, which is reviewed at respective plant-level risk committees, headed by the plant head.
  • Corporate risks - All the plant-level risks and risks of corporate functions as well as organizational risks requiring review of the macro environment, policies and processes are discussed at the corporate meetings. The corporate risk committee is headed by the JMD.
  • Board of Directors – All the key risks identified at corporate risk committee meeting are presented to the board and all plants & corporate updates on risk mitigation action status on a half-yearly basis are reviewed by the Board of Directors.
  • All these activities are coordinated by the Chief Risk Officer.

     

Stakeholder Engagement

Stakeholders are the key material topics for JSW. Stakeholder engagement refers to the trust-based, mutually beneficial relationships of the Company with key stakeholders such as investors, customers, vendors, society and government, among others. They are essential to business operations, and their feedback is vital for understanding their concerns and their material impact on the Company. JSW Steel’s stakeholder engagement strategy seeks feedback on a regular basis, which is then integrated into the organisation’s medium- and long-term strategy and planning exercises. This also enables the Company to promote the idea of shared growth and a common prosperous future for the society at large. The Company has formal mechanisms in place to engage key stakeholder groups in a constructive manner and collect valuable feedback. This proves to be a valuable input for the risk assessment and strategy formulation process of the Company.