Tata Steel Named Supplier Engagement Leader by CDP
Tata Steel Ltd
CDP, a global environmental non-profit charity, has recognised Tata Steel as the 2022 'Supplier Engagement Leader' for its commendable efforts in measuring and reducing environmental risks throughout its supply chain.
This recognition is significant as it is the third time in the last four years that the company has received the highest rating from its suppliers.
Tata Steel's 2022 CDP disclosure has placed it in the top 8% of companies assessed for supplier engagement on climate change. This recognition is a testament to the company's dedication to implementing sustainable practices throughout its supply chain and its endeavours to engage and collaborate with stakeholders, such as customers, suppliers, policymakers, regulators, and others, to hasten the transition towards a low-carbon economy.
CDP's Supplier Engagement Rating (SER) evaluates companies' efforts to engage with their suppliers on climate change. The SER assesses companies' performance in governance, targets, Scope 3 emissions, and value chain engagement in the CDP climate change questionnaire. Tata Steel's engagement practices have been recognised as outstanding, with the company's efforts earning the highest rating of 'A'.
Sanjiv Paul, Vice President (Safety, Health & Sustainability) at Tata Steel, expressed his delight at the company's recognition as a 'Supplier Engagement Leader' by CDP and emphasised that sustainable business practices are vital for creating long-term value for stakeholders.
Paul added that reducing carbon emissions is not only an environmental responsibility but also a critical business imperative, and Tata Steel recognises that engaging with suppliers and stakeholders is essential in driving sustainable business practices.
Peeyush Gupta, Vice President (Group Strategic Procurement and Supply Chain) at Tata Steel, acknowledged that addressing emissions in the value chain is crucial to becoming net zero. Gupta stated that Tata Steel has taken several initiatives over the past few years to lower its Scope 3 carbon emissions and has plans to significantly reduce its footprint in the future.
He further added that Tata Steel is pioneering sustainability across its supply chain through responsible sourcing and distribution partnerships and that the company continues to engage with its supply chain partners to improve their energy & resource efficiency and environmental performance.
Sonya Bhonsle, Global Head of Value Chains at CDP, highlighted the importance of corporate reporting on nature and called for environmental leadership from companies to tackle their impacts on climate change and nature together. Bhonsle emphasised that companies must start embedding nature into the way they buy and collaborating with suppliers to drive action in the supply chain, incentivising this engagement within their organisation.
She also warned that companies that are not preparing for future regulations on nature in the supply chain are at risk and could miss out on the opportunities safeguarding nature will bring.
Tata Steel has a fully integrated value chain that encompasses various stages of production, from mining to finished steel products. The company's extensive network of suppliers, mines, ports, manufacturing locations, stockyards, processing facilities, channel partners, and customers are interconnected.
As the focus on reducing the ecological footprint and mitigating emerging regulatory and climate change risks increases, Tata Steel is prioritising the development of a Green Supply Chain. This includes exploring third-party logistics, modern state-of-the-art warehouses, using energy-efficient and eco-friendly ships with newer designs, coastal shipping, and utilising digital means to simplify the flow of raw materials and other services.
To ensure that its suppliers align with its sustainability goals, Tata Steel regularly engages with them to assess their environmental performance and encourage them to adopt sustainable practices.
The organisation also collaborates with its customers to work on mutually rewarding initiatives, provides Life Cycle information on products, conducts sustainability screening of suppliers, recognises them for taking relevant initiatives, and shares good practices with the industry. Additionally, Tata Steel participates in global collaborations to enhance its supply chain sustainability efforts.
Source: Tata Steel