Our approach to Responsible Supply Chain Management (RSCM)

Responsible supply chain management is integral to our sustainability commitment. We enforce ethical and sustainable practices from sourcing to delivery, prioritising human rights, environmental concerns, and social standards. Transparent communication with suppliers and stakeholders is a key aspect of our approach.

Our Supply Chain Strategy aligns with the organisation’s short and long-term goals. The RSCM Policy directs our interactions with business associates, and their adherence to it is assessed when awarding contracts.

Aspects of the RSCM policy

Access our RSCM policy here

Procurement policy

Our procurement policy covers various business needs, including fuel sourcing, material and service procurement, and inventory management. Throughout the year we maintained a stable supply chain with no significant changes. We prioritise local procurement within India to support skill development and safety standards, with the majority of non-fuel purchases sourced locally. In FY24, 66% of our Tata Power spending came from local suppliers.

Our engagement with stakeholders, including Business Associates (BAs), adheres to the Tata Code of Conduct, Supplier Code of Conduct, RSCM Policy, and Procurement Policy. Roles and responsibilities are clearly defined, operating within the authority schedule set by Senior Management.

Our BA engagement models are fair, transparent, and merit-based, promoting excellence throughout the ecosystem. Processes are regularly reviewed based on stakeholder feedback. Over the years, our procurement team has established a strong network of critical materials to ensure business sustainability.

ESG screening for Business Associates

Our ESG programme for Business Associates (BAs) implements thorough systems and procedures to foster accountability and sustainability across our supply chain. Leadership oversight is aligned with this programme, with executive management actively involved in its development, implementation, and monitoring to ensure alignment with organisational values and goals.

Integral to this programme is our ESG Framework, guiding our associates and reaffirming our commitment to stakeholders. We employ ESG screening procedures to identify and address material risks and impacts within the supply chain, focusing on environmental, social, and governance factors, including sector-specific attributes and country-specific risks.

Our ESG screening criteria prioritize ESG performance scores reflecting our dedication to achieving ESG objectives. We enforce a zero tolerance policy on health, safety, Environment, compliance, and Human rights, mandating ESG disclosure and conducting comprehensive evaluations aligned with ESG criteria.

HIGHLIGHTS OF FY24

Energising through collaborations

We lead the way in adopting innovative technologies and forging partnerships to transform India’s power sector. As the top power utility, we collaborate globally with over 70 partners, including startups, tech firms, academic institutions, and funding bodies, to enhance technology and customer service standards. Our multi-faceted approach addresses diverse use cases and stakeholder needs, focusing on opportunities in Distributed Energy Resource Management, Alternative Battery Chemistries, Non-Silicon PV, Cybersecurity, Behavioural Demand Response, Utility-specific Robotics, Advanced Materials, Industry 4.0, Smart Charging Infrastructure, and Power Quality solutions.

Key collaborations