Our Approach to Responsible Supply Chain Management (RSCM)

Responsible supply chain management is a fundamental value embedded in our commitment to sustainability. We have implemented policies and initiatives to uphold ethical and sustainable practices across our supply chain, encompassing sourcing through to delivery. Our approach entails unwavering adherence to human rights, environmental considerations and social standards, coupled with transparent communication with our suppliers and stakeholders.

Involving Stakeholders in Carbon Mitigation Journey @ Suppliers

• Encourage ESG disclosure for Tier-I suppliers
• Responsible supply chain management – ethics, environment, human rights and safety

Our Supply Chain Strategy is aligned to achieving the organisation’s short and long-term goals and objectives. The RSCM Policy guides our engagements with business associates, and we evaluate their commitment to it when awarding contracts.

Key aspects of the RSCM Policy

• Access our RSCM policy here

Procurement Policy

Our procurement policy caters to a wide range of business requirements, including fuel sourcing, procurement of materials and services, and material and inventory management. Throughout the year, our supply chain remained unchanged without any significant alterations.

We actively encourage local procurement, placing emphasis on fostering local skill development and maintaining high safety standards. The majority of our non-fuel procurements are sourced locally, and in FY23, 98.3% of our spend in Tata Power has been sourced from local suppliers.

Our engagement with all stakeholders, including the Business Associates (BAs) is governed by the Tata Code of Conduct (TCoC), RSCM Policy and Procurement Policy. The roles and responsibilities are clearly assigned and operate in conjunction with the schedule of authorities set by the Senior Management.

Our engagement models with our BAs are fair, transparent and merit-based (performance-linked/productivity-linked/SLA-based) processes which promote excellence across the ecosystem. The processes are reviewed based on the feedback received from all stakeholder touchpoints. Moreover, our procurement team, over the years, have built an intelligent and robust network of materials which are critical for business sustainability.

ESG screening for Business Associates

We expect partners to adhere to our ESG policies, fostering responsible and sustainable growth. We evaluate initiatives for environmental protection, employee support and ethical practices. Our framework guides associates, emphasising our commitment to stakeholders.

We advocate sustainable supply chains, urging suppliers to adopt an integrated approach. Screening criteria prioritise scores of 50% or higher, showing dedication to our ESG goals.

We enforce a zero-tolerance policy for health, safety, compliance, and human rights. Collaboration prioritises efficiency, sustainability, energy conservation, community upliftment and data security. Mandatory ESG disclosure is required during bidding and comprehensive evaluations consider technical, safety and commercial capabilities aligned with ESG criteria.

Transforming India’s power section through collaborations

We collaborate with 65+ global technology companies, institutions, and funding agencies to transform India's power sector. Our partnership focuses on diverse stakeholder needs, embracing technologies such as alternate battery chemistries, microgrids, non-silicon PV, data analytics, EV charging infrastructure, and smart metering for power quality enhancements.

ESG awareness drive

To ensure inclusivity, we are actively organising ESG awareness campaigns, with a specific focus on small and medium enterprises. Our regular sessions and meetings with BAs have yielded sustainable progress and we aim to achieve 100% participation by the end of FY24.

Key highlights of FY23

Screened 100% of new Business Associates

(Suppliers and service providers included) Non-fuel procurement orders exceeding ` 5 crore underwent ESG screening and were deemed acceptable based on the evaluation criteria