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SUSTAINABILITY REPORT FY 2023 COMMUNITIES THE PLANET THE WORKPLACE
Supply Chain Management
An agile and resilient supply chain helps The Supplier Code of Conduct (SCOC) HSE, necessary policies, and strategic objectives. Significant/Critical Suppliers
Vedanta navigate unforeseen disruptions serves as the guiding principle for all of The standards, and responsibilities of critical role
such as natural disasters, supplier issues, or Vedanta’s engagements with suppliers and holders are also considered. For risks related to Significant suppliers play a crucial role in
market fluctuations. Diversifying suppliers, vendors, and is a mandatory adherence for human rights, suppliers need to declare their Vedanta’s operations, as any disruption in
implementing contingency plans, and all suppliers and vendors. The SCOC is commitment to compliance with the Modern the supply chain can greatly affect
fostering strong relationships with key comprehensive; it addresses various areas, Slavery Act. This approach further helps to prioritise production, costs, and revenues. These
partners enhance Vedanta's ability to including anti-corruption, human rights, Vedanta’s risk management measures for its suppliers are of utmost importance to the
respond swiftly to challenges and maintain health, safety, environment, climate change, suppliers. The Company also engages a third-party Company due to the potential risks and
business continuity. and sustainability. to conduct a risk assessment of their suppliers on impact associated with their products.
various aspects, including regulatory compliance
Integration of ESG in our Supply Chain To uphold human rights laws and practices and compliance with the Modern Slavery Act (MSA). ABC Supplier classification:
It is crucial for Vedanta to effectively and ensure relevant legislations are being During supplier screening 20% weigtage is given to Suppliers are classified as Significant/critical
ESG parameters for and suppliers who do not
address corruption, human rights violations, complied throughout Vedanta’s supply chain, qualify are not given contracts. and non-significant/critical based on five
environmental impacts, climate change, and the Supplier and Contractor Sustainability dimensions under the ABC framework:
other risks that arise within its supplier Management Policy has been established. • Business outcome
network. By actively engaging with suppliers Periodic inspections are conducted at the • Spend (value/volume)
and gaining a deeper understanding of their Company’s remote mine locations to • Critical business operation
operations and practices, the Company monitor and address any potential violations. • Sensitivity
aims to proactively manage and address the They verify proof of age for all contract • Substitutability
associated risks. Vedanta recognises the workers, and employ radiological age Environmental
significance of this task and is committed to identification processes to detect and
implementing dedicated strategies and address any instance of child labour Sustainability high-risk
programmes to mitigate these risks. violations. Training is provided for the
Company’s buyers and/or internal Vedanta defines risk as a factor of
stakeholders on their roles in the supplier Aspects of likelihood of occurrence and its severity.
ESG programme. Business Supplier Social The Company’s suppliers are thus
Relevance screening categorised under the following to reflect
Supplier Screening their high-risk potential:
Vedanta evaluates potential and current 1) Suppliers from countries which have the
suppliers, before engaging in business likelihood of incidence of slave
partnerships or procurement activities labour/child labour
based on company, sector specific and Governance 2) Suppliers not having adequate safety
commodity specific risks. It is crucial to trainings in place for their workforce
ensure that the Company works with reliable
and reputable suppliers who can meet high 3) Suppliers lacking a concrete policy on
standards of quality, safety, sustainability, Country: Specific Risks considered human rights, fair wages, proper working
and compliance. Anti-corruption & bribery and business ethics conditions, etc
When screening potential suppliers, Vedanta 4) Environment, Social and Governance
considers their performance on, business, misconducts resulting in disruption in
HSE, human rights and climate change by Sector: Specific Risks considered Human supply chain
assessing it against the criteria, such as the rights, air emissions and climate change
leadership commitment to performance in “A” category suppliers are critical suppliers for our business
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