Tata Steel is the 10th largest steel producer in the world. It is one of the world’s most geographically diversified steel producers. Together with its subsidiaries, associates and joint ventures, the Company’s operations are spread across five continents with an employee base of over 65,000.
Tata Steel is a socially conscious corporate citizen, which has spent Rs. 481 Crores towards its Corporate Social Responsibility (CSR) initiatives in FY2022-23. Of this, Rs. 234 Crores was spent in Jharkhand and Rs. 239 Crores was spent in Odisha. Through this, the company has been able to positively impact the lives of over 3.15 million people.
Tata Steel focuses its CSR programs in areas of Education, Nutrition, Health, Livelihood, Water resource management and Women & Youth empowerment.
1. Climate Action at Tata Steel
Iron and steel have been central to human development for three thousand years. Steel is the world’s most important and cost-effective engineering and construction material. Steel remains an integral part of the solution to climate change because of its unique properties like strength to weight ratio, ductility, longevity and, most importantly, infinite recyclability. These properties make steel the material of choice for industries like construction, infrastructure, automotive, white goods, and general application. Steel is also playing an important role in the transition to clean energy with its application in solar panels, wind turbines, hydroelectric dams, and EVs
As per International Energy Agency (IEA), the steel sector emits 2.6 Gt CO2 annually, which accounts for 7-9% of global sectors for GHG emissions because of hard-to-abate metallurgical coal being used as a reductant in the iron making process through the Blast Furnace. The Blast Furnace-Basic Oxygen Furnace (BF-BOF) route accounts for 70% of global steel production currently.
Tata Steel is committed towards reducing its carbon footprint in production and through the life cycle of the product. It is one of the first companies in India to have endorsed the recommendations of Task Force on Climate-related Financial Disclosures (TCFD), with its Executive Director and Chief Financial Officer (ED&CFO) being a member of the Task Force. The Company is continually strengthening its production processes, supply chains, internal governance, disclosures, and policy advocacy to facilitate a transition to a low-carbon future.
2. Building a Sustainable Supply Chain
Tata Steel has a long-integrated value chain that extends from mining to finished steel products with an interconnected network of suppliers, mines, ports, manufacturing locations, stockyards, processing facilities, channel partners and customers. The Company handles planning, sourcing, delivery and logistics of ~100 MnT materials which include raw materials, finished goods and by-products. Its outbound logistics is about 60% dependent on railways and 40% on roadways at various locations. It consists of a network of warehouses and Steel Processing Centres (SPCs), ensuring timely delivery and transportation of finished products to customers. This is enabled by a network of hubs and stockyards at strategic locations across India to ensure low delivery cycles.
With increasing focus on reduction in ecological footprint and de-risking supply chain from emerging regulatory and other climate change risks, Tata steel is now focussing on a Green Supply Chain and exploring third-party logistics, modern state-of-the-art warehouses, use of energy-efficient and newer design eco-friendly ships, coastal shipping to reduce landside tonne miles and use of digital means to simplify the cargo flow of raw materials and other bought-out goods (maintenance, repair, operations, bulk, etc.) and services.
3. Tata Steel’s CSR in India
For over a century, Tata Steel has been serving the marginalised and voiceless sections of the community across more than 4,500 villages in nine districts of Jharkhand and Odisha. Tata Steel’s overarching vision to be the global steel industry benchmark for value creation and corporate citizenship is underpinned by a resolve to “work with tribal and excluded communities we serve and co-create transformative, efficient and lasting solutions to their development challenges” and thereby create “an enlightened, equitable society in which every individual realises one’s own potential with dignity”. Tata Steel’s CSR Programme aims to create deep-rooted social capital through leading societal impact in Eastern India with its own resources, extensive public and private collaborations as well as by fostering changemakers organically from within communities.
The primary agency to plan and execute Tata Steel’s CSR is the Tata Steel Foundation, which has a diverse 800+ strong force of professionals from myriad domains who have strong relationships with communities by directly working amongst them to implement various social development programmes.
Masti ki Paathshala
Tata Steel’s CSR initiative, “Masti ki Paathshala,” is designed to address the pressing issue of child labor and abuse by providing education and a safe environment for marginalized children. The program operates through both residential bridge schools (RBCs) and non-residential bridge schools (NRBCs). Its primary objective is to integrate children engaged in the worst forms of child labor, such as rag-picking, begging, and brick-kiln work, into the formal education system.
The program recognizes that these children have experienced various forms of abuse and aims to provide them with a conducive learning environment that promotes their overall growth and development. By mainstreaming them into the education system, Masti ki Paathshala seeks to reduce societal inequities in a rapidly developing and urbanizing society.
In the fiscal year 2022, a significant milestone was achieved as a total of 1,950 children were integrated into the Masti ki Paathshala initiative. Among them, 1,056 children were mainstreamed into schools, with 217 coming from RBCs and 839 from NRBCs. This accomplishment demonstrates the program’s effectiveness in providing vulnerable children with the opportunity to access education and escape the cycle of child labor and abuse.
Education Signature Programme
Tata Steel’s CSR initiative, the Education Signature Programme, is focused on developing a model that can be replicated and scaled up to achieve the universalization of elementary education (UEE) within the framework of the Right to Education (RTE) in India. The program aims to address three key aspects of schooling: Access, Learning, and Governance, with the ultimate goal of making education socially relevant and inclusive.
By focusing on Access, the program works to ensure that all children have the opportunity to attend school. It aims to remove barriers to education and increase enrollment rates, particularly in marginalized communities. Through various interventions and initiatives, the program strives to reach children who may face challenges in accessing education due to socioeconomic factors, distance, or cultural barriers.
In terms of Learning, the Education Signature Programme aims to enhance the quality of education provided in government schools. It focuses on improving teaching methods, curriculum development, and providing resources and infrastructure to create a conducive learning environment. By enhancing the learning outcomes of students, the program seeks to empower them with the necessary knowledge and skills to succeed in their academic journey and beyond.
The Governance aspect of the program emphasizes the importance of effective school management and administration. It aims to strengthen the governance mechanisms within schools and promote community engagement in the education system. By fostering collaborative partnerships among stakeholders, including parents, teachers, and local authorities, the program aims to create a supportive and accountable educational ecosystem.
In the fiscal year 2022, the Education Signature Programme made significant progress. A total of 460,000 children in 3,780 government schools benefited from structured learning enhancement initiatives. This indicates the program’s commitment to improving the quality of education and providing valuable opportunities to a large number of students.
Additionally, the program has contributed to the declaration of 1,623 habitations as child labor-free. By ensuring that all children are attending school, the initiative actively combats child labor and provides a safe and nurturing environment for children to learn and grow.
3.2 Sustainable Livelihoods
Jamshedpur Kalinganagar Development Corridor
Tata Steel’s CSR initiative, the Jamshedpur Kalinganagar Development Corridor, aims to foster holistic development across 72 panchayats in 16 blocks, spanning five districts, along the 280-kilometer road route connecting the steel production centers in Jamshedpur, Jharkhand, and Kalinganagar, Odisha. This initiative envisions the creation of a corridor of well-being called the Development Corridor, focusing on the overall growth and prosperity of the communities residing in the region.
In the fiscal year 2022, the program took a significant step by recognizing 39 Development Corridor Fellows from within the villages along the corridor. These fellows serve as grassroots community leaders who are empowered with knowledge and skills to design and execute initiatives that directly benefit their communities. The recognition of these fellows not only encourages their active involvement but also emphasizes the importance of community-driven development.
The Jamshedpur Kalinganagar Development Corridor is a comprehensive initiative that goes beyond traditional CSR efforts. It seeks to address the social, economic, and environmental needs of the communities along the corridor. By investing in infrastructure development, education, healthcare, livelihoods, and other essential services, the program aims to uplift the quality of life and promote sustainable development in the region.
By engaging local communities and empowering them to lead development initiatives, the program fosters a sense of ownership and accountability. It recognizes the unique challenges and opportunities specific to each community along the corridor and encourages local leaders to identify and implement solutions that best suit their needs.
Tata Steel’s CSR initiative focuses on various agriculture activities to engage with marginal and excluded farmers, aiming to generate income and promote sustainable farming practices. The program encompasses a range of agriculture interventions, including Systematic Rice Intensification (SRI), Promotion of Second Crop, Kitchen Garden, and Agri-Allied Interventions.
Under Agri-Allied Interventions, the program encourages farmers to diversify their income sources through activities such as Dairy Development, integrated pond-based livelihood (fisheries and duck rearing), Tassar Cultivation, Dryland Farming, and Horticulture (mango, rose, Wadi Project). These initiatives enable farmers to explore different avenues for generating income while ensuring sustainable agricultural practices.
In the fiscal year 2022, the program achieved commendable results, with an average increase in annual income of ₹1.08 lakh per household across 52,000 households. These livelihood programs have proven to be effective in enhancing the economic well-being of farmers and their families.
By promoting sustainable farming practices and providing support to farmers, Tata Steel’s agriculture activities aim to improve the socio-economic conditions of marginalized and excluded farmers. These initiatives empower farmers by diversifying their income sources, enhancing agricultural productivity, and promoting the adoption of modern farming techniques.
Furthermore, the program emphasizes the importance of holistic development and addresses the needs of farmers in various sectors, including livestock rearing, fishery, sericulture, and horticulture. By enabling farmers to engage in these agri-allied activities, the program contributes to their overall livelihood improvement and economic stability.
4. Tata Steel CSR Outside India
In Europe, the Company maintains close relationship with employees, customers, local residents, NGOs and educational institutions in driving community development programmes and provides guest lectures on various environmental related topics including role of steel in our society and processing method of steel. In the Netherlands, the Company is closely involved in the Technochallenge Foundation, which organises various activities for primary and secondary schools. During 2021, Promotie Evenement Techniek event in Beverwijk, Holland was attended by 67 primary schools who were introduced to recent technologies. Further, on April 21, 2021, the Company also celebrated ‘Girl’s Day’ and organized an online programme to introduce girl students to the world of science and technology.