TENDERS
1. Introduction
Our value-creation process depends on a robust network of suppliers and partners. We establish mutually beneficial partnerships and foster propositions that enhance our competitive edge. The engagement we have with our suppliers and partners is vital to our achievements, and we place great emphasis on nurturing these relationships.
2. Our approach to responsible supply chain management (RSCM)
Responsible supply chain management is a fundamental principle embedded in our commitment to sustainability. We have implemented policies and initiatives to uphold ethical and sustainable practices across our supply chain, from sourcing to delivery. Our approach entails unwavering adherence to human rights, environmental considerations, and social standards, coupled with transparent communication with our suppliers and stakeholders.
3. Key aspects of responsible supply chain management
a) Supplier ESG program
Our ESG Program for Suppliers incorporates comprehensive systems and procedures to foster a culture of accountability and sustainability throughout our supply chain. Our company strongly emphasizes aligning leadership oversight with our ESG program for Suppliers. Our executive management actively engages in the program's development, implementation, and monitoring to ensure its alignment with our organizational values and strategic goals.
b) ESG awareness drive
To ensure inclusivity, we are actively organizing ESG awareness campaigns, with a specific focus on small and medium enterprises. Sustainability throughout our supply chain is a core focus, and to ensure that our collective efforts contribute to minimizing environmental impacts and promoting responsible practices, we consistently collaborate with suppliers with a focus on efficiency, sustainability, energy conservation, community upliftment, and data security.
c) ESG Benchmarks with Peers
Tata Power after conducting ESG Assessment for Suppliers and Partners conducts benchmarking of scores for all partners internally
d) Supplier Support
Tata Power provides support to its Supplier and Partners through regular engagements like trainings, Annual Supplier meet, Reward & Recognition, etc.
e) Technical Support Programs
Tata Power provides technical support to its Suppliers & Partners in areas such as GHG Carbon Footprint, Energy Efficiency, Health & Safety, etc. These support programs are carried out for specific domain partners based on the material issues e.g. – Coal Suppliers (including traders), MSME’s (Micro Small and Medium Enterprises), OEMs, etc.
f) Capability development through Tata Power Skill Development Institute
We support our supplier to foster a culture of continuous improvement through our TPSDI technical support initiatives. Our programs prioritize the holistic development of suppliers, refining their productivity, safety, delivery, quality, and ESG performance through a structured approach. We ensure that all our suppliers are supported through this capability development program.
This program enhances capabilities, fosters value, following categories of mandatory training programs: L-1: Basic Safety Training; L-2: Technical skill-based Training; and L-3: Overall Training for Supervisors.
4. Review of Purchasing Policies
All new suppliers are onboarded based on stringent pre-qualification requirement evaluation covering following aspects:
· Technical Capabilities
· Experience
· Financial Performance
· Safety Performance
· Sustainability
ESG framework is mandatory part of all Contracts, and it is integrated with GCC (General Conditions of Contract) document.
Compliance with Tata Power Policies and framework is a contractual obligation for all Suppliers.
5. Contract Criteria based on ESG Assessments and Requirements
Based on the assessment result, we support suppliers to establish improvement or corrective action plans, and plan to conduct continuous monitoring on the improved outcome. We have set a minimum requirement that suppliers must comply with for contract awarding. Suppliers who are unable to meet expectations within a specified time frame will be temporarily excluded from the list of potential suppliers until they achieve compliance.
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.
6. ESG screening for Suppliers
As an integral part of our ESG program, we have established an ESG framework that serves as a guiding principle for our associates and reinforces our commitment to stakeholders. To effectively identify and address material risks and impacts arising from supply chain activities, we employ ESG screening procedures for our supplier. Our ESG Framework encompasses a comprehensive approach to addressing supply chain-related risks.
The ESG Framework incorporates screening parameters that help in identifying negative environmental, social, and governance impacts related to commodities and sector-specific attributes. It also accounts for country-specific risks, such as overreliance on a single country. Through this screening, we assess suppliers environmental practices and social and ethical responsibilities, ensuring they align with our ESG goals.
Our screening criteria prioritize scores of 50% or higher, demonstrating our dedication to achieving our ESG objectives. Furthermore, we enforce a zero-tolerance policy regarding health, safety, compliance, and human rights. Mandatory ESG disclosure is required during bidding processes, and comprehensive evaluations consider technical, safety, and commercial capabilities aligned with ESG criteria.
In the fiscal year 2024, 100% Key/critical business associates screened including suppliers and service providers.
7. Supplier Assessment and Development
A. Supplier Assessment
Tata power carries out Supplier Assessment (desk, on-site (2nd party) and third party) for critical Tier 1 suppliers. Site assessment is mandatory before on boarding of new Suppliers and assessment is done in alignment with our “ESG Framework for Business Associates”
( https://www.tatapower.com/content/dam/tatapoweraemsitesprogram/tatapower/pdf-root/sustainability/sustainable-governance---policies/ESG%20Framework%20for%20Business%20Associates.pdf)
Suppliers are assessed based on a pre-defined criteria checklist on all material parameters of Environment, Social and Governance.
a. Verification of evidence
All new suppliers and partners are required to submit documentation as per the checklist provided. These suppliers are assessed based on the checklist and they are given ESG scores.
Failing to secure minimum ESG scores results in suppliers being put in Corrective Action Plan.
b. On-site assessment (2nd Party)
Tata Power carried out 2nd party On-site assessment for critical suppliers, wherein the suppliers are judged on a pre-defined checklist covering critical areas such as Statutory Compliances, Quality processes, Safety standards including statistics, etc.
c. 3rd party assessment
Tata Power ensures 3rd party assessment of its suppliers by ensuring that suppliers have requisite certification from ISO (9001:2015, 14001:2015, 45001:2018) and SA 8000: 2014.
These valid 3rd party certifications ensure that suppliers have requisite systems and processes, addressing critical areas of Quality, Environment, Safety and Human Rights, respectively.
B. Standards and Methodologies for Supplier Assessment
Our standards and methodologies for supplier assessment area aligned to following standards
1. Quality Management System (ISO 9001:2015)
2. Environmental Management System (ISO 14001:2015)
3. Safety Management System (ISO 45001:2018)
4. Social Accountability (SA 8000:2014)
5. Guidance on social responsibility (ISO 26000:2010)
C. Supplier corrective action/improvement plans
Tata Power carries out continuous evaluation of its suppliers and partners through monthly scorecards covering following areas – Safety, Statutory Compliances, Delivery (timeliness), Quality and Sustainability.
Suppliers and Partners are bifurcated into different classes based on their scores.
Suppliers are requested to submit Corrective and Improvement Action plans, when thy fall into Class-IV
Classification of vendors based on evaluation score:
BA CLASSIFICATION | IMPLICATIONS |
Class-I | To Continue as approved vendor |
Class-II | Registration to be reviewed once in 2 Years |
Class-III | Warning letter* |
Class-IV | To be reviewed by CFT for recommendation* |
8. Supplier Screening
· Tier 1 Suppliers – All suppliers and partners directly supplying products and services to Tata Power
· Significant Suppliers – Significant suppliers are suppliers and partners which are critical to Tata Power business and sustainability goals. These are also categorized under Critical Tier-1 suppliers.
9. Supplier Assessment and/or Development
Tata Power monitors the coverage and progress of a supplier assessment and/or development program to ensure risks are being managed and that the company is acting responsibly by building capacity within its value chain
Corrective action plan support | Unit | FY24 | FY23 |
Total number of suppliers supported in corrective action plan implementation | No. | 0 | 0 |
% of suppliers assessed with substantial actual/potential negative impacts supported in corrective action plan implementation | % | 0 | 0 |
10. Partners with purpose
We collaborated 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.
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