All our vendor partners are signatories to the Tata Steel Responsible Supply Chain Policy which includes the requirements of Tata Code of Conduct (TCoC). A declaration from suppliers is obtained during onboarding to ensure their commitment to the policy.

The principles of Responsible Supply Chain Policy (RSCP) take into consideration a range of aspects, including regulatory compliance, working conditions, Anti-corruption, Anti-competitiveness, conflict of interest, protection of company assets, third-party representation, reporting of violations, human rights such as (non-discrimination and prevention of harassment), health and safety and environmental indicators like emissions, energy consumption, pollution prevention, waste management, resource efficiency, and biodiversity.

In line with our Responsible Supply Chain Policy, we have defined screening criteria to identify "Critical Suppliers". The criteria consider factors such as ESG aspects, input materials or sectoral risks, country risks, commodity risks and business relevance. All our critical suppliers are made aware on our sustainability-related policies and requirements through dedicated training and communication programs.

We have engaged a globally renowned independent agency to conduct assessments of our supplier partners, evaluating their alignment with the principles outlined in our Responsible Supply Chain Policy. Supplier partners are rated based on their responses to a comprehensive questionnaire. The responses are verified based on the evidence provided. The assessment enables us to determine the maturity of our partners in the five core principles of our Responsible Supply Chain Policy.

We are aware that not all our suppliers will meet our Responsible Supply Chain Policy requirements from day one. To facilitate their performance improvement, we are piloting the implementation of a Sustainable Procurement Framework across select categories, where we consider suppliers’ ESG performance in procurement decision-making. Suppliers with ESG performance rated ‘Improving and above’ are considered to have qualified the assessment and therefore accepted for procurement considerations.

Based on the assessment findings, we develop a corrective action plan (CAP) in collaboration with our vendor partners. Through our Vendor Capability Advancement Program (VCAP), we drive joint improvement projects in our vendor partners’ operations to enhance their performance.