Tata Steel recognised as global leader for engaging its supply chain on climate change
~ Amongst the top 3% of organisations assessed by CDP ~
~ Amongst only four Indian companies and the only Indian steel company to feature in the Supplier Engagement Leaderboard ~
Tata Steel has been recognised as a global leader for engaging with its suppliers on climate change. The Company has been awarded a position on the Supplier Engagement Leaderboard by global environmental impact non-profit CDP.
Tata Steel has been recognised for its actions and strategies to reduce emissions and manage climate risks in its supply chain in the past reporting year. Over 4,800 companies in total were assessed by CDP and given a Supplier Engagement Rating, based on answers to selected questions about governance, targets, scope 3 emissions, and value chain engagement and their response to the CDP 2019 climate change questionnaire and their overall CDP climate change score. Tata Steel is among the top 3% of organisations assessed by CDP, one of 159 companies on the Leaderboard this year.
Tata Steel’s VP, Supply Chain, Dibyendu Bose, said: “The steel industry is an integral part of the global economy and as a responsible corporate citizen, we will continue with our efforts to engage with our suppliers to emulate best practices, drive improvement in their environmental performance, and enable a transition to a sustainable economy. Over the years, Tata Steel has built an entire ecosystem to support its efforts in reducing carbon footprint across the steel value chain. An independent recognition of our efforts, such as the one we now have from CDP, is indeed encouraging and motivates the team on this journey. “
Dexter Galvin, Director of Corporates and Supply Chains at CDP, said: “Congratulations to all the companies on the CDP Supplier Engagement Leaderboard for this year. They are showing leadership on engaging their suppliers to manage climate risk and cut emissions. Given that supply chain emissions are on average 5.5 times as high as a company’s operational emissions, this couldn’t be more crucial. If we are to achieve the goals of the Paris Agreement and decarbonize the economy, then other companies learning from these leaders and engaging their suppliers is going to be vital”.
The Supplier Engagement Leaderboard was released on Feb 4, 2020 and is available on CDP’s website. It follows on from CDP’s most recent supply chain report, Changing the Chain, which showed the vast potential for driving climate action at scale in the supply chain. The report found that major companies working with CDP have potential to cut a gigaton of emissions by driving their suppliers to increase their average proportion of renewable power by 20 percentage points.
During the CDP 2019 disclosure cycle, Tata Steel responded to over ten customers and shared updates on value chain engagements beyond the Company boundary e.g. (a) collaborations on Life-cycle assessment (b) implementation of light-weighting of automobiles: value analysis / value engineering studies to optimise the steel product mix in vehicles and introduction of Advanced and or Ultra High Strength steels, (c) collaborations on yield optimization across the value chain, (d) collaborations linked to the Circular Economy. The Company has also integrated climate change in organisational decision making by adopting Carbon pricing.
In 2019, Tata Steel Limited was recognised by the global steel body ‘World Steel Association’ (worldsteel) for participation in the CO2 emissions data collection programme 2018-19. Tata Steel has been contributing to the CO2 data collection programme for the last 11 consecutive years.
Over the last three decades, Tata Steel has made concerted efforts in various areas including supply chain to mitigate climate change and manage climate risks. The Company has embarked on a journey to transform into low-carbon business and breakthrough projects like HIsarna, investments in Carbon Capture pilots, R&D’s pursuit of economical hydrogen production, and Steel Recycling Business, bears testimony to this commitment.
Tata Steel plays a constructive role in addressing climate change - both by reducing our carbon footprint, and by creating high performance steels that lead to fuel-efficient vehicles and energy-efficient buildings. The Company’s Environmental Management Systems at all its main manufacturing sites meet the ISO 14001 standards.
Tata Steel’s efforts encompass several initiatives such as waste-heat recovery, zero-effluent discharge, solid waste utilisation and bio-diversity management, among others. Reforestation, setting up of eco-parks, plantation of trees and enhancement of the green cover around our plants are some of the other initiatives the Company regularly undertakes.
CDP is a global non-profit that runs the world’s leading environmental disclosure platform. In 2019, over 8,400 companies disclosed environmental data through CDP at the request of 125 major purchasing organisations with US$3.6 trillion in purchasing spend, and 525 investors with US$96 trillion in assets, making it the gold standard in corporate environmental reporting.
About Tata Steel
Tata Steel group is among the top global steel companies with an annual crude steel capacity of 33 million tonnes per annum. It is one of the world's most geographically-diversified steel producers, with operations and commercial presence across the world. The group (excluding SEA operations) recorded a consolidated turnover of US $22.67 billion in the financial year ending March 31, 2019. In 2018, Tata Steel acquired Bhushan Steel Ltd (now renamed as Tata Steel BSL Ltd).
A Great Place to Work-Certified organisation, Tata Steel Ltd., together with its subsidiaries, associates and joint ventures, is spread across five continents with an employee base of over 65,000.
Tata Steel retained the ‘Global Steel Industry Leader’ position in the DJSI 2018. The Company has been recognised as the Climate Disclosure Leader in ‘Steel category’ by CDP (2017). Besides being a member of the World Steel Climate Action Programme, Tata Steel has won several awards including the Lighthouse recognition for its Kalinganagar Plant – a first in India, Prime Minister’s Trophy for the best performing integrated steel plant for 2016-17, ‘GreenPro’ certification for products (Tata Pravesh Steel Doors, Tata Structura, Tata Pipes) by CII, Authorized Economic Operator (AEO) status (Tier 2) by the Directorate of International Customs (Ministry of Finance, Govt. of India), ‘Corporate Strategy Award’ by Mint (2018), Golden Peacock Award for Risk Management (2018) and Best Risk Management Framework & Systems Award (2019) by CNBC TV18. The Company also received the ‘Most Ethical Company’ award from Ethisphere Institute for the eight time (2019), Steel Sustainability Champion (2018) by the World Steel Association, Dun & Bradstreet Corporate Awards (2019), Golden Peacock HR Excellence Award by Institute of Directors (2018), ‘Best Companies To Work For’ recognition by Business Today, 'Asia's Best Integrated Report' award by the Asia Sustainability Reporting Awards (2017), among several others.
Last year, the Company launched a corporate brand campaign #WeAlsoMakeTomorrow..
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Statements in this press release describing the Company’s performance may be “forward looking statements” within the meaning of applicable securities laws and regulations. Actual results may differ materially from those directly or indirectly expressed, inferred or implied. Important factors that could make a difference to the Company’s operations include, among others, economic conditions affecting demand/supply and price conditions in the domestic and overseas markets in which the Company operates, changes in or due to the environment, Government regulations, laws, statutes, judicial pronouncements and/or other incidental factors.
Chief, Corporate Communications-India & SEA