Coal India Limited’s Sustainable Development

As of October 14, 2014

Our Vision

“To emerge as a global player in the primary energy sector committed to providing energy security to
the country by attaining environmentally and socially sustainable growth through best practices from
mine to market”.

As the largest coal producing company in the world and one of the largest corporate employers, we recognize
our significant responsibility to our shareholders, employees, customers, suppliers and the local communities in
which we operate as well as to the Government of India. We are committed to promoting and pursuing
sustainable mining policies and practices which integrate environmentally and socially sustainable growth with
economic factors.

In November 2013, we committed to six key initiatives that are helping our company emerge as a leading global
player. We continue to make sustained progress in CSR initiatives for the community, mitigating environmental
pollution, land reclamation and restoration as well as ongoing afforestation. We are committed to adhering and
abiding by the laws of the country in particular those governing environmental and human rights. As a Central
Public Sector Undertaking, we are covered under the Right to Information Act, 2005. More information is
provided in our Sustainability Report 2013-14 and Annual Report.

We recognize that we are on a journey and need to do more to achieve our vision. The following builds upon
and strengthens our six key initiatives, highlights areas of progress and identifies additional steps we will need
to take to continue our journey.

Key Initiatives

1. Third party certification (ISO 9001, ISO 14001, OHSAS 18001) across all CIL operations by 2016

— We have made continued progress and are on track to achieve certification across the entire operations of
CIL by 2016. Across our eight subsidiaries, 62 units and 3 entire subsidiaries are ISO 9001 certified, 73
units and 2 entire subsidiaries are ISO 14001 certified, 28 units and 2 entire subsidiaries are OHSAS 18001
certified.
— As part of the certification processes, we will provide public disclosure; the most recent status of this
certification work can be found on our website. In our next annual sustainability report, we will disclose an
update as well as any material gaps that are identified by the independent certifying agencies along with
suggested remedies. The independent consultants are: QMS Certification Services (JAS-ANZ), M/s
Certification Services Pvt Ltd. (JAS-ANZ), Certification International (UKAS) & BIS.

2. Stakeholder engagement

— We welcome the views of all our stakeholders including non-governmental organizations (NGOs),
and will undertake a stakeholder engagement process to understand their concerns, provide greater
transparency, better communicate measures CIL has undertaken and identify where appropriate best
practices can be adopted.
— All our public consultation proceedings for new projects and expansion projects have been displayed on the
websites of the respective State Pollution Control Boards and other Govt. Offices.
— As part of the engagement, we will more actively seek to better understand the specific concerns raised by
NGOs and other stakeholders on issues such as biodiversity and the impact our operations may have on
critical tiger habitats. While we strictly adhere to the Ministry of Environment and Forest’s guidelines, we will
evaluate ways for us to further minimize our environmental and biodiversity impact. To this end, we are open
to discuss issues related to safety, social & environment with any NGOs as and when applicable.
— We will continue to enhance our Annual Sustainability Report on our engagement with all stakeholders

3. Policy on child labor & Human Rights

— We recognize the importance of children’s rights and we have a clear stance on the important issue of child
labor. We continue to adhere to The Mines Act, 1952, which prohibits the employment of children below 18
years of age in a mine. We are currently evaluating a more comprehensive Human Rights policy, which
includes child labor for CIL and hope to adopt a version of the same shortly.
— In addition, as part of our Corporate Social Responsibility program, we actively invest in the communities in
which our people live and work. Over the past year, we have supported over 536 schools with Rs.125.89
crore in financial grants and have committed to generate employment opportunities for people in our activity
areas by offering vocational training. In aggregate, we have spent Rs. 409.37 Crore for CSR activities in the
financial year 2013-14.

4. Enhancing safety measures and disclosure

— We have a goal of zero fatalities. Though mining operations pose some inherent workplace risks, we
recognize that each life is precious and no fatality or serious injury is acceptable. While the number of fatal
accidents in 2013 increased over 10% compared to 2011, in our effort to achieve zero fatalities, we will take
suitable steps for further consideration to engage qualified consultants in due course of time.
— We will continue disclosure on our safety policy and procedures and report statistics annually on both
fatalities and accident rates based on internationally comparable definitions.

5. Greenhouse gas measurement and reporting

— We recognize that climate change is one of the most critical environmental challenges of our time. As a
major coal producer and supplier, we also recognize that we have a responsibility to provide affordable
energy to the country in a manner that is reliable and secure.
As a first step, we will start to evaluate our greenhouse gas emission footprint across our operations by
appointing a consultant by March 2015. We hope to begin reporting on our footprint in FY 2017.

6. Strengthening timely regulatory compliance

— We will further strengthen our internal policies and procedures to ensure timely regulatory compliance. In
the past fiscal year, we've had no known incidents of regulatory non-compliance. From 2012 till date we
have recruited 139 executives to look after the areas of environment, 120 executives for CSR and other
sustainability related issues. These people will be directly posted to their fields of operations and will work
closely with local community.
— We have a comprehensive and flexible Rehabilitation and Resettlement (R&R) policy, which is available on
our website.
— We will enhance our public disclosure through annual reporting on our compliance and where we are non-
compliant, the remedies we will undertake.