Tata Steel collaborates with suppliers and vendor partners globally to establish a sustainable supply chain. We are dedicated to embracing sustainable business practices throughout our value chain and expect our vendor partners to share this commitment by integrating sustainability principles into their decisions and processes. To accomplish this, we have established the Tata Steel Business Associates Code of Conduct (BACoC) and implemented Responsible Supply Chain Policy (RSCP) that promotes improvement across Fair Business Practices, Health & Safety, Human Rights, and Environmental Protection. We work seamlessly with our vendor partners to avoid potential conflicts and promote / address ESG requirements.
All our vendor partners are signatories to the Tata Steel Business Associates Code of Conduct (BACoC), which is an extension to Tata Code of Conduct (TCoC). An annual declaration is taken from all our active suppliers to ensure their commitment to the business associate code of conduct.
The principles of Responsible Supply Chain Policy (RSCP) takes into consideration a range of concepts, including regulatory compliance, working condition, Anti-corruption, Anti-competitiveness and conflict of interest, protecting company assets, third-party representation, reporting violations, conflict of interest, human rights like discrimination and harassment like health and safety, environmental indicators like emissions, energy consumption, Pollution prevention, waste management, Resource efficiency, and Biodiversity, etc.
In line with our Responsible Supply Chain Policy, we have a defined screening criteria to identify "Critical Suppliers". The criteria consider factors such as ESG aspect, input material or sectorial 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 basis the evidence provided. The assessment enables us to determine maturity of our partners on the four core principles of our Responsible Supply Chain Policy.
| Performance Group |
Score (out of 1) |
| Leading |
≥ 0.8 |
| Mature |
Between 0.6 and 0.8 |
| Established |
Between 0.4 and 0.6 |
| Improving |
Between 0.2 and 0.4 |
| Basic |
≤ 0.2 |
We are aware that not all our suppliers will meet our responsible supply chain policy requirements on day 1. To facilitate their performance improvement, we are now piloting implementation of Sustainable Procurement Framework across a few categories where we will consider suppliers’ ESG performance in procurement decision-making. Those with ESG performance ‘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, we drive joint improvement projects in our vendor partners’ operations to improve their performance.
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