Social & Relationship Capital

Impact

• Improved employee experience through increased participation in voluntary initiatives of Arpan

Financial Capital

Impact

• Investments made in training and development for knowledge and skill enhancement of employees

Natural Capital

Impact

• Increased awareness and efforts towards environmental conservation through voluntary employee participation

Intellectual Capital

Impact

• Increased employee participation at Tata Innovation forums
• Establishment of innovative technologies to ease manual intervention in system procedures

Manufactured Capital

Impact

• Exceptional resilience of sites to disasters with our Business Continuity and Disaster Management Plan (BCDMP)
• Timely and effective commissioning of projects, sustained operation at benchmark levels due to highly skilled and competent workforce

Our Human Resource strategy

To enable employees to perform at their full potential, it is imperative to create a work environment that is collaborative, enriching and fosters a culture of learning and growth.

Our HR strategy adopts a multipronged approach touching seven key facets that enable employee development and organisational success.

The alignment of our employees' individual values and aspirations with the Company's ideals is a central pivot that enables value generation for our customers, the society and the environment.

*NOTE: Includes only manpower numbers of Tata Power, TPREL, CGPL, TPSSL, TPRMG, PTL, WREL, MPL, IEL, TPTCL, TPADL, TERPL, TPCDT, FENR, SED, NELCO, TPDDL

**Workmen includes Non-Management Employees

***FDA and SE include employees and supervisory trainees on direct contract with the Company

****Number of permanent employees with disabilities is included in the total workforce strength

Employee Engagement at Tata Power

Platforms that enhance qualitative employee engagement

Our work culture enables continuous dialogue with our employees. We actively listen to their needs, aspirations and ambitions, making their voices heard and their inputs valued, and thereby facilitating an open channel for two way communication. We consciously seek feedback on any organisational changes and keep our employees adequately informed to ensure smooth transition.

Unique appraisals for enhanced performance

Our Performance Management is a key talent management process that drives a high performance culture and helps create excellence by enabling achievement of organisational plans. All our employees, across all levels, received regular performance appraisal and feedback during the reporting period. The process involves setting the individual’s Key Result Areas (KRAs), which are cascaded from the strategic goals of the organisation, cluster and divisions/ functions.

Competency building-AMP Model

We consider it equally critical to evaluate the potential of an employee in his/her current role as well as future growth. We define the Key Behavioural Attributes (KBAs) of an employee based on the competencies identified in Tata Power’s new Leadership Competency Model called AMP (Aspire-Motivate-Perform). Recognising the need to evolve Tata Power’s own talent framework that is more fitfor- purpose and more likely to address the business challenges, an in-house exercise was undertaken wherein the competencies were identified which were required for leaders to succeed in the future in the context of Tata Power’s plans while retaining our core. The leadership competency model is the outcome of such research based approach involving the Board Members, MD, CFO and other senior leaders. The AMP model is highly contextual to Tata Power and is a mix of existing and future facing competencies.

Employee Engagement Survey

We also conduct an annual Employee Engagement Survey (EES) to gain a clear understanding of various aspects of our workforce’s functioning, the engagement level and areas of improvement in work environment. The EES 2020 was conducted by a reputed external partner, Kincentric and focused on understanding the role of three key stakeholders in influencing the work experience-the manager, the senior leadership and the HR. The survey saw a record participation rate of 98% and increase in the overall engagement score by a significant 9%.

Integrating human inspiration with innovation

While we formally engage with our employees through the appraisal process, we also encourage them to actively participate in the forums of the Tata Group such as Tata Innoverse and Tata Innovista (annual celebration of innovation in the Tata Group).

We also use various innovative strategies to engage with our employees and support their growth within the Company. Some of our key programmes are:

• Talent Next : Through this programme, high-performing officers are given the opportunity to showcase their potential to the management and thereby fast track their career progression
• Youth Power Confluence : Newly joined cadre/trainees can showcase their talent and exceptional work through this platform to fuel their growth in the Company
• Ullas : Through this cultural platform, we enable our employees to showcase their talent
• Gyankosh : Tata Power’s e-learning platform provides best-in-class learning and development opportunities for employees
• Town Hall : Organised regularly to facilitate conversation between employees and senior leaders
• Employee Assistance Programme (EAP) : Provides professional counselling services such as 24/7 e-counselling, telephonic, face-to-face counselling, wellness coaching, online health risk assessment tools, self-help library/self-assessment tests, e-workshops, among others. This programme also helps deal with issues such as personal development, work, relationships and marriage, parenting, physical and emotional wellness

Talent acquisition and retention

Building and retaining strong employee skills

Technological disruptions are redefining work paradigms across industries. At Tata Power, we empower our employees with requisite skill-sets to help them keep pace with these developments. We provide employees with various channels to express their creative energies. While we provide avenues for employees to tap into their innate talents, we enable their growth and development in new areas as well as invest in their health and safety. The training needs assessment and identification process for both functional and behaviour skillsets factors in:

1. Business Strategy Plans

Training and development needs are derived from the organisation's strategy, growth plans, core competencies, emerging competencies and thrust areas.

2. Individual Development Needs

This encompasses the learning needs of all employees which are identified during the 'goal setting' exercise in consultation with their appraiser. Gaps are ascertained through Functional Competency Assessment and development needs are arrived at by the People Potential Development System.

4. Succession Management

Development needs are identified for successors (short/medium/long-term) to ensure business continuity.

3. Focus Group Needs

Training needs are identified through an ongoing dialogue between the Capability Building Team, Business HR Heads and HODs, which captures emerging training and development needs of a Department/Team. Career stage linked (work level transition/ promotion/transfer) developmental needs are identified for desired outcomes for each employee transitioning to a new role.

4. Succession Management

Development needs are identified for successors (short/medium/long-term) to ensure business continuity.

Our training modules and programmes

Training needs are also identified at the time of ‘goal setting’ during the appraisal process. Once identified, we impart training and development through various modes such as internal training, external training, focused group training and support for higher education.

9,950 MAN-HOURS

Tata Power covered 611 employees
through external training programmes
and dedicated man-hours

Our training modules cover:

1. Safety and job specific skills

2. Housekeeping

3. Contractor Safety Code of Conduct

4. CMG - documentation training

5. TCOC and POSH sessions

6. Protection and testing of electrical equipment

7. IMS external audit, among others

During FY20, we also nominated several employees for external training programmes. These are either open public programmes by leading institutions, agencies, conferences, seminars, certifications, or specialist programmes. Nominees are shortlisted based on their performance in the current role, identified high potential performers, identified successors, technical specialists, etc.

Tata Power also supports its officers to pursue higher education to build competencies and prepare them for future roles, as per the Higher Education Sponsorship Programme (HESP) policy. The policy team publishes and updates the list of courses at regular intervals.

An officer may choose to pursue higher education through one of the following modes:

• Full time: Courses for up to two years on study leave without pay
• Part time: Courses for a maximum duration of three years

We have covered 142 employees since the launch of this policy

Our Work Integrated Learning Programme in collaboration with BITS Pilani enables diploma-holders to get an engineering degree. In FY20, 43 employees were covered under this initiative.

Nurturing future leaders

In order to have a secure pipeline of leaders to guide the Company towards further growth, we actively invest in providing dedicated training for leadership development. In addition, we sponsor consistently high performing leaders and managers in a critical role to open programmes at globally recognised institutions such as Harvard, Wharton and INSEAD. In FY20, we nominated one high performer for the Leadership Vanguard – Exchange Programme with Xynteo Limited.

We recognise that strong leadership acumen is imperative for business success and strategic growth. Our HR team has conceptualised, designed and launched interventions for Apex and Senior leaders to enable them to achieve their full potential towards fulfilling organisational objectives. Consequently, for top management and senior leaders an Integrated Senior Leaders' Development Program (SLDP) has been designed combining the "Advanced Management Program" at the Indian Institute of Management, Ahmedabad with coaching journey christened "mYCoach".

30 senior leaders participated in a customised niche senior leaders’ development programme, in FY20.

We have also devised a leadership development programme, 'Achieving Your Leadership Potential', in collaboration with the Tata Management Training Centre (TMTC). Catering to our high performance officers, this nine-day aspirational programme is delivered in three modules of three days each, with six-week gaps in between by the renowned faculty members of TMTC using a blended learning pedagogy interspersed with action learning projects, including case studies on existing challenges of Tata Power. In FY20, two batches covering 43 participants completed this programme. As a result of these programmes, FY20 saw 96.6% retention of employees in the higher cadre.

Safety Linked Training

Every employee at Tata Power, is trained and empowered to identify unsafe work environments and make proactive decisions to avoid accidents. We have a strong safety capability building process in place. Once we determine safety-linked training needs, we prepare detailed plans at corporate and divisional levels. Safety training is imparted through classrooms, practical demonstrations and e-learning modules.

Our safety-linked training covers:

1. Employee Safety Induction programme

2. Risk exposure-based safety programmes (working at height, electrical safety, lifting and slinging, etc.)

3. Behaviour-based safety programmes

4. General awareness programmes like firefighting, defensive driving and office safety, among others

100%

of our contractual employees are trained on various aspects of occupational safety

We train our employees to ensure they understand their rights and embrace a proactive safety approach. This takes place through the Tata Power Skill Development Institute (TPSDI) as well as through online modules on safety standards and procedures. The safety capability building of contract workers is integrated in the Contract Safety Management Process. They are trained during their induction and undergo specific trainings based on their area of work. These trainings are also conducted at the TPSDI with various levels of certifications (L1, L2, L3) awarded at the end of the process. In addition to certification training, prior to executing any job, ‘Toolbox Talk’ is conducted at the site through which work related risks and adequate control measures are highlighted once again.

Our permanent employees are also required to attend applicable trainings out of the following 13 Critical Safety Procedure programmes which can be completed through e-learning or classroom-based training platforms.

For enhanced engagement with safety-linked themes, we set safetyrelated targets for each of the operational sites and entrust the responsibility of achieving them with the top management of the site. This infuses accountability in our safety management system and encourages managers to make dedicated efforts to drive the safety agenda.

Our approach towards the protection of human rights

At Tata Power, we are committed to uphold the highest standards of human rights aligned to our organisational ethos. We have a dedicated Human Rights Policy, which is aligned to the principles of the International Labour Organisation and United Nations Global Compact.

We emphasise

• Prohibition of child labour
• Prohibition of forced labour
• Freedom of association and right to collective bargaining
• Protection from discrimination

We have a zero-tolerance policy towards child labour and forced labour. Given our commitment to strictly prohibit child labour and forced labour across the value chain, we have been able to build our business in such a way that none of our operations or suppliers breach this Company policy. It is our responsibility to ensure an inclusive work environment where no employee is discriminated on the basis of age, gender, marital status, personal beliefs, religion and spiritual practices, political affiliation, sexual orientation and HIV/AIDS, among other distinctive individual attributes. We also have zero-tolerance towards harassment of any form and in FY20 we addressed all three cases registered for sexual harassment. Further, as of FY20, 22.2% (workmen cadre) of our employees are covered by collective bargaining agreements.

We sensitise our employees on various facets of human rights protection, ensuring our vision for the protection of human rights is realised each day at our workplace. The pre-induction training and periodic refresher modules also cover the tenets of soft skill ensuring conducive working conditions and protection of human rights. We ensure that all our security personnel and contractors adhere to the Tata Code of Conduct, which covers detailed aspects of human rights. We have had no instance of violation of any of the human rights and have not received any complaints in this regard, which showcases our commitment towards the protection of human rights.

Celebrating equality and diversity at our workforce

At Tata Power, we celebrate and strive to enhance the diversity of our workforce. The unique blend of a multitude of perspectives and aspirations is key to infusing operational excellence in our service delivery. We are an equal opportunity employer, and we base our decisions – from talent acquisition to performance appraisal — exclusively on merit, competency and potential. Our policies clearly communicate our commitment to promoting diversity and equality in every aspect of work spanning employment terms, training and performance management. Further, our Gender Diversity and Inclusion Policy empowers women by promoting an inclusive and inspiring work environment.

Our Health and Wellness Policy covers an employee and his or her close family, including support for chronic illness.

We also provide various benefits to promote diversity. This includes provisions to support employees at various stages of life from higher education, marriage, child rearing preferences, illness and old age. We started providing six months of maternity leave even before it was mandated by law. This is a testament to our organisational ethos of being inclusive and supportive to all our employees' needs.

At Tata Power, we are committed to ensuring the all-round wellbeing of employees. Our Health and Wellness Policy covers an employee’s close family and includes support for chronic illness. Our medical fund provides coverage for medical expenses over and above the employee’s eligibility under the Mediclaim scheme and is an industry benchmark for employee benefits.

20% WOMEN

leaders on our Board

TPDDL

has been recognised amongst India’s Best Workplaces for Women in FY20

*NOTE: Considers remuneration for employees of Tata Power, TPREL, CGPL, TPSSL, TPRMG, PTL, WREL, MPL, IEL, TPTCL, TPADL, TERPL, TPCDT, FENR only

*NOTE: Considers remuneration for employees of SED

*NOTE: Considers remuneration for employees of NELCO

*NOTE: Considers remuneration for employees of TPDDL

*NOTE: Includes attrition numbers of Tata Power, TPREL, CGPL, TPSSL, TPRMG, PTL, WREL, MPL, IEL, TPTCL, TPADL, TERPL, TPCDT, FENR, NELCO, TPDDL, SED

Safety First: Our Approach to Achieving Safety Excellence

At Tata Power, we believe good health and safety of our people is one of our biggest assets. We strive to safeguard the health and safety of all our stakeholders, including employees, contractors, suppliers and partners who help us realise our organisational goal of excellence in service delivery. We adopt a proactive and pre-emptive approach to occupational health and safety within the organisation.

We have mandated use of Personal Protective Equipment (PPE) for all types of operations and maintenance jobs for Generation, Transmission and Distribution utilities. We embrace a beyondthe- curve approach to ensure that we are not just aligned to global best practices but also innovate and ideate to set new benchmarks through our safety-centric culture. We strive to achieve a track record of zero injuries and fatalities. Moreover, we ensure that each employee actively imbibes those safetylinked practices.

We have designed a programmatic approach with three key focus areas: organisation and culture, systems and processes, and equipment and facilities. This approach anchors our operational philosophy of “No Harm/No Injuries”. We have aligned all our operations to international safety standards and procedures and have a safety management system that identifies hazards, monitors safety incidents and devises corrective strategies. We have also established a Business Continuity and Disaster Management Plan (BCDMP) to make our sites resilient to natural and manmade disasters. Further, we have a Consequence Management Policy that sets out the general approach to managing safety deviations and establishes processes for corrective counselling.

Our standard operating procedures and systems are continuously reviewed to enhance their robustness and ensure all our contract workers and suppliers are in compliance with our operational principles of safety. We have designated safety officers, first aid personnel and emergency response teams for each operational site to effectively tackle any adversity. Further aligned to the Indian Factories Act, each operational site has a Central Safety Committee with representation from the major departments. These departments further have divisional subcommittees with representation from the workers.

Monitoring Our Safety Performance

Close monitoring of our safety performance has helped our safety procedures evolve over the years. Through effective monitoring, we have been able to identify hazard hotspots and avenues for improvement. To monitor safety-linked performance, we maintain records of safety-linked training and incident dashboards. These records are reviewed periodically at the cluster level and by the corporate Employee Health and Safety (EHS) team. All reported incidents are thoroughly investigated using root cause analysis. For high potential, high severity incidents and near-misses, a cross-functional team is formed to investigate causes and identify suitable corrective and preventive actions to avoid recurrence.

Our Suraksha mobile app is one such intervention that enables employees to conveniently report unsafe conditions.

We have adopted a SAP-EHSM platform to enable effective incident reporting and investigation. This platform also provides details of audits and inspections. We have developed various innovative means to make it easier for employees to grasp the concepts of a proactive safety approach and participate in the Company’s safety-linked endeavours. In addition, we have digitalised and consolidated our safety management system into a centralised safety communication system and dashboard that showcases KPIs. We have an online Fire Preparedness Index (FPI) that enables communication, monitoring, reviewing and decision-making around fire safety.