Sustainable Supply Chain Management Practices : A ... · Cascade Supply chain Management Practices: Large public and private sector organizations really can lead effective change

Copyright © 2018 Tech Mahindra. All rights reserved. 1

Sustainable Supply Chain Management Practices :

A Collaborative Approach

Capacity Building Workshop FY 19

Date: 7th March, 2019

2Copyright © 2018 Tech Mahindra. All rights reserved.

Agenda

1. Introduction

Sustainability

Sustainable Supply Chain

Management (SSCM)

2. Sustainability at Tech M

Overview

SSCM @ Tech M

Expectations


1. Introduction

Sustainability

Sustainable Supply Chain

Management (SSCM)


Towards Sustainability…..


Introduction

“Focusing on meeting the needs of the present

without compromising the ability of future

generations to meet their needs..”

……….Brundtland Commission (UN)

• Those companies that wait to be forced into action or who see it solely in terms of reputation management or CSR, will do too little too late and may not even survive.” Paul Polman, Chief Executive, Unilever

• “It takes 20 years to build a reputation and five minutes to ruin it.” Warren Buffet


Why Sustainability

“Treat the earth well: it was not given to you by your parents, it was loaned to you by your children. We do not inherit the Earth from our Ancestors, we borrow it from our Children.

~ Ancient American Indian Proverb

Weather Changes

Storms and volcanoes

Deforestation

Sea-level rise

Diseases through pollution

Aquatic life disturbed

Natural resource depletion


Sustainability drivers

‘Voice of society’ New regulations

Supply chain responsibility or pressure

Investor pressure

Demands for increased disclosure and transparency

Industry peer pressure

Sustainability

Competitive product markets

Risk management needs

Managing reputation and brand

Stronger ethical/moral views

Threat of litigation

Competitive labour markets

Others?


Sustainable Supply Chain Management

• Sustainable supply chain management involves integrating environmentally and financially viable practices into

the complete supply chain lifecycle

SSCM Priorities

Environmental stewardship

Conservation of resources

Reduction of carbon footprint

Financial savings and viability

Social responsibility


The Cascade Effect

Impact within supply chain significantly outstrips the impact related to their own operations.

Opportunity for positive change exists more in supply chain management decisions than in areas within direct

operational control.

Cascade Supply chain Management Practices:

Large public and private sector organizations really can lead effective change

through using their substantial procurement spend as a powerful lever for action.

Cascade good practices and commitments further down the supply, chain,

this can play a huge role in the rapid transition to a sustainable,

low carbon economy

There is power in procurement……..


Why Should you adopt….?

Collaborate

Customer/

Investor/

Stakeholder Mandate

Innovating Products and

Services

Reducing Environmental

Impact and Costs

Emerge Successful in Competitive

Market

• Supply chain represent significant size of their Customer’s overall Carbon Footprint

• Collaboration helps suppliers understand Customers Vision and Mission

• Suppliers can suggest changes and ungraded to

products and processes

• Help Company achieve innovation goals

• Demonstrate Sustainability Practices among Suppliers

• Preference to Suppliers complying to requirements

• Voluntary today, may be mandate tomorrow.• Competitive Edge to win customers



1 : Introduction

What is Sustainability Why Sustainability What is SSCM Cascading.

2 : Sustainability @ Tech Mahindra

Overview

SSCM @ Tech Mahindra

Expectations



Sustainability Initiatives

TechM’s Science-Based Targets have

been approved

Integrated report 2017-18 published

Water, D&I, Tax, HR, BRR, Green Procurement and Data Privacy &

Protection policies updated

15 Copyright © 2016 Tech Mahindra. All rights reserved.

Awards & Recognitions

Recognized as World Leader for Supplier engagement on Climate Change 2019 by CDP- the only Indian IT Company on this Leader Board

Listed as a ‘Rising Star’ in the CDP’s India Leaders 2018 Member of DJSI World Index for 2018- one amongst the only 4

Indian companies to be listed Tech Mahindra has re-emerged as a leader in Sustainability, being

one of the 10 Indian companies who are part of the Emerging markets

Tech Mahindra has been awarded “Prime” status, a Sustainability rating by the German company, OEKOM research AG, have rated us among the best 10 percent of companies (in terms of sustainability performance) across the Software & IT Services sector category

Tech M is constituent of FTSE4Good Index Series 2018, demonstrating strong Environmental, Social and Governance (ESG) practices

Included in the RobecoSAM2018 Sustainability Yearbook & received Silver Class distinction for excellent sustainability performance

Winner of the Harish Mahindra Memorial Trophy 2018


Sustainability @ Tech MSSCM Policy

Seek higher standards of performance from the top 10 high spend and higher risk ‘key suppliers’

Efficient use of Tech Mahindra and supplier resources

Deliver social and environmental benefits for Tech Mahindra, our suppliers and the broader community

Encourage our suppliers to make available cost-effective, environmentally and socially responsible products and services

Create other benefits such as reduced costs, improved risk management, enhanced quality, and product or service innovation

Ensure both the accuracy of the information provided by suppliers and improvement of the underlying performance,



Expectations

Comply to SSCM Questionnaire and respond back to Tech M

Participate in Supplier Audits and drive improvements based on outcomes

Attend Capacity Building Workshop and conduct for your Suppliers

Start reporting on GHG emissions.


SSCM Questionnaire[Slide 1/4] ]

S.N Requirement Suggested Artefacts

1 Comply with all relevant local and national laws and regulations with regard to employment practices, benefits, health and safety and anti-discrimination.

Legal Register

2 Written labour/workplace management policies and standards. Policy

3 Workplace free of direct or indirect discrimination, harassment or bullying on the grounds of gender, age, race, nationality or ethnic origin, disability, family responsibilities or parental status, marital status, the occupation of spouse or partner, medical or irrelevant criminal record, political convictions, pregnancy or potential pregnancy, religious beliefs or activities, sexual preference of sexuality, industrial activity or union membership, physical appearance, social origin or careers responsibilities.

Policies and practices on• Equal Opportunity• Anti Harassment, Anti Bribery , POSH

4 No Child Labour forced or involuntary labour in any form

5 Fair pay and working conditions, including adequate rest periods and parental leave, comply with local laws and match prevailing working conditions.

Policies and practices on• Compensation and Benefits• Working Hours, Leave and Holidays

including Maternity/ Paternity Leaves• Working Environment

6 Consideration to the needs of, and requests made by employees, as a stakeholder in the operation of the business.

Employee Feedback Process and how are they addressed

7 Committed to the provision of relevant training, learning and development opportunities for employees.

Training Calendar

1. Labour/ workplace management



1 Comply with all relevant local and national laws and regulations with regard to occupational health and safety and the provision of health related benefits to employees.

Legal Register

2 Written safety and health policies and standards. Policies and Practices on:• Health and Safety• OHSAS/ISO 45001 Certification

3 Documented system to reduce work-related injury and illness. • Hazard and Risk Management• Documented Processes• Reporting and Corrective Actions

2. Occupational health and safety


1 Written and periodically tested Business Continuity Plan (BCP) in place to minimise business impacts in the event of a major disruption.

• BC Plan• BC tests and outcomes

2 Written and periodically tested Emergency Response Plan (ERP) in place to minimise harm to employees, the local community and local environment (including buildings) in the event of a site disaster.

• Emergency Response Procedure• Test Cases Reports

3. Risk Management




1 Comply with all relevant local and national laws and regulations with regard to land and water management, waste and recycling, the handling and disposal of toxic substances, discharges and emissions, noise, transportation of products, waste.

• Legal Register• Hazardous waste management process

2 Written environment policy Policy and Implementation

3 Written environmental management plan to identify and minimise the impact of their activities on the environment.

Risk Assessment

4. Environment


1 Comply with all laws and regulations on bribery, corruption and prohibited business practices.

• Legal Register• Policies and practices on

o Anti Bribery, Corruptiono Ethical Business Conduct

2 Conduct Business in accordance with high ethical standards. Ethical Business Conduct

3 Formal complaints management process for employees, suppliers and members of the communities

• Formal complaint/ Grievance redressalsystem

• Awareness among Employees

4 Transparent allocation of responsibilities between Board and management, where an applicable organisational structure exists.

• Roles and Responsibilities

5 Promote timely and balanced disclosure of material matters concerning • Proactive Risk Management

5. Corporate governance and ethics




1 Adopt similar principles to these in dealing with their own key suppliers* (which may include high spend, high risk or strategic suppliers).

• Evidence Implementation for Sub Suppliers

2 Adhere to acceptable business practices with their own suppliers, including providing for timely payment and reasonable contractual conditions.

6. Supply Chain


1 CSR Activities • List of CSR Activities and outcome

7. Community Engagement



Further References

https://www.techmahindra.com/company/Sustainability.aspx

Carbon Disclosure Project

https://www.techmahindra.com/company/Sustainability.aspx

https://www.cdp.net/en/research/global-reports/global-supply-chain-report-2019


Q & A !!!


Documents

Sustainable Supply Chain Management Practices : A ... · Cascade Supply chain Management Practices: Large public and private sector organizations really can lead effective change