For Better
Sourcing
SDGs IMPACTED
Sustainability
at the source
Our strategy includes initiatives focused on raw-material sustainability, supply-chain traceability, and sustainable agriculture programmes.
VISION
Sustainable value chains from farm to shelf.
TARGETS
100%
Critical supplier assessments across all geographies by 2030
100%
Sustainably sourced critical raw materials by 2040
Stakeholders impacted
CONSUMERS
World-over, consumer awareness is on the rise, and there is increasing demand for sustainability attributes, including nutrition and wellness, ethical sourcing, quality, taste, and sustainable packaging. For FMCG companies such as Tata Consumer, consumer focus is on ingredients and packaging materials. We accord priority to traceability and sustainability of raw materials, sustainable agriculture and responsible sourcing and disseminate information that is of interest to consumers through multiple channels.
Modes of engagement
Consumer Surveys
VALUE CHAIN PARTNERS
The recent disruptions in global supply chains have highlighted the importance of trust, mutual benefit, and values-based relationships between corporations and their supply chain partners. Our Sustainable Relationship Management Programme helps recognise vendors for contributing to our sustainability goals and strengthens long- term relationships based on shared values. We also collaborate for greater efficiencies, formulate fair contract and payment terms, identify risks and develop plans to mitigate them.
Modes of engagement
Interaction with team members
Material issues
(Dealers, Retailers, Suppliers, Farmer connect) The long-term relationships we build with our ingredients and raw material, packaging, logistics, and other suppliers are critical to ensuring business continuity. Our vast and expansive network of distributors and retailers help us serve the needs of millions of consumers on a daily basis. This has helped us increase our market presence in semi-urban and rural areas and has also effectively helped us tackle the issue of counterfeit products.
Our commitment to responsible sourcing addresses growing market demands for ethical and sustainable products and strengthens our credentials as a sustainable organisation. Our partnerships with trustea and Rainforest Alliance ensure that most of our tea is sustainably sourced, i.e. verified by trustea or Rainforest Alliance certified. In addition, more than 85% of the salt we offer in the market is sourced from Tata Chemicals, which is aligned to Tata Group’s sustainability commitments.
By upholding human rights in the value chain, we ensure that the procurement of raw materials and other services is supported by sustainable people practices. Our Supplier Code of Conduct, details our position and expectations on human rights and is based on SA 8000 (Social Accountability) standards. A comprehensive training programme on human rights is currently being developed by the Tata Sustainability Group. Going forward, we would align to this training programme once it is rolled out.
Our efforts to preserve natural resources such as water and soil and promotion of biodiversity play an important role in encouraging sustainable agricultural practices; this delivers higher yields to the growers/ farmers and better-quality raw materials to us. Through our partnerships with trustea and Rainforest Alliance, we are able to promote soil health, ensure that our growers minimise chemical inputs in their agriculture practices and respect the interplay between people and the natural environment in their surroundings.
Highlights FY 22-23
Performance update
While we have already made significant progress in some product categories (e.g. tea), we are working to replicate this success across other categories too.
Our supply partners have operations that conform to standards we have agreed on for social and working conditions, safety and environmental requirements, and agricultural practices. Vendors are being given periodic training on Tata Code of Conduct (TCoC) values and objectives, Anti-Bribery and Anti-Corruption (ABAC) policy guidelines and thresholds, sample scenarios with consequences and grievance management process.
We updated our Supplier Code of Conduct in FY 21- 22 and enhanced focus on ESG parameters, namely Human Rights, Workplace, and Labour Standard; Anti-Bribery and Anti-Corruption; Data Protection, Information Security, Intellectual property rights; and Management Systems.
Currently we have 684 vendors of whom over 250 are local, ensuring that we promote local employment and reduce our carbon footprint from the supply chain.
To better engage with our packaging material suppliers, we have developed a Supplier Relationship Management (SRM) programme which is conducted twice a year for all our primary packaging vendors.
The SRM process has been developed with the objective of better cost management, better governance, driving innovation, and better performance visibility and service levels. In this process, suppliers are scored based on key performance indicators, each with its own weightage: cost (15%); service (30%); quality and capability (30%), innovation and ethical supply (25%). A total of 34 suppliers across various packaging categories have been included in the SRM in FY 22-23.
All our critical primary packaging material suppliers adhere to sustainability requirements in terms of supplying food-grade compliant packing material as well as continuity and capability for meeting our needs. 98.5% of our procurement spend on primary packaging material takes place in India.
Tea, coffee, and salt are key raw materials given their salience in our business, and we place high priority on sourcing these sustainably. Sustainable agriculture lends to higher yields and productivity and encourages the socio-economic development of surrounding communities. Our participation in the trustea programme and Rainforest Alliance enables environmental protection and improved livelihoods for tea growing communities. This is made possible by educating them about:
- The Plant Protection Code which requires the use of approved chemicals and fertilisers only
- Ensuring safety by using personal protection equipment (PPE) and maintaining hygiene in fertiliser application process
- Environmental aspects such as the impact of deforestation and biodiversity loss
- Preventing soil erosion
- Equal wages for equal work
trustea also trains growers on managing their farm activities with respect to updating input details as well as plucking/harvesting details into a digitised system.
We place emphasis on sourcing key raw
materials sustainably. Sustainable agriculture
lends to higher yields and productivity and
encourages the socio-economic development
of surrounding communities.
TRUSTEA
trustea, an ISO 9001:2015 certified organisation and member of the ISEAL* framework, drives sustainable agriculture that benefits both the planet and the farmers. The programme has been recognised as the world’s largest sustainable agri-certification initiative and is well on its way to transforming the Indian tea industry.
It has facilitated a better working environment for women (maternity benefits, crèche facility, etc.), market access and better prices for small tea growers, as well as a structured grievance redressal system, better housing, potable drinking water, and a uniform wage payment system for tea workers.
The trustea programme has cumulatively verified more than 871 million kg of tea till March 2023, which is over 65% of tea sold in the Indian market. Since inception, about 1,10,085 small tea growers have been verified, 6.6 lakhs workers have been reached through trustea and 55% of Tata tea is trustea verified.
* (ISEAL members are sustainability systems and accreditation bodies dedicated to delivering benefits for people and planet
RAINFOREST ALLIANCE
The Rainforest Alliance aims to conserve biodiversity and to support sustainable livelihoods. The Alliance is working with renewed focus on climate resilience, cultivating rural prosperity, protecting forests and biodiversity, and advancing human rights.
ETHICAL TEA PARTNERSHIP
The Ethical Tea Partnership (ETP) is a membership organisation working with tea companies, development organisations and governments to improve the lives of tea workers, farmers and their environment. Its aim is to drive long-term, systemic change across three thematic areas in tea–economics, equality and environment as well as supporting communities on the ground with programmes across Africa and Asia. As one of the founding members we have worked closely with the organisation for many years.
We are an SA 8000 (Social Accountability) certified Company. We also expect our vendors to adhere to the principles and practices of the SA 8000 standards which includes requirements related to child labour, forced labour, health and safety, freedom of association and right to collective bargaining, discrimination, disciplinary practices, working hours, remuneration, and management systems.
trustea aims to create a network of verified, sustainable tea producers who adhere to well-established, sustainable tea farming practices. The programme has been built on three pillars namely–environment, safety, and livelihood– thereby complying to Indian regulations and globally accepted sustainability principles.
Through trustea, we leverage scale of production, processing, technologies, supply-chain development, market access, and regulatory compliance to support the smallholders, tea estates and Bought Leaf Factories (BLF).
Certified producers are encouraged to move towards judicious use of agro-chemicals and fertilisers, thereby increasing the use of biological formulations and traditional knowledge-based solutions with an Integrated Pest Management Plan (IPM). trustea promotes the protection of biodiversity.
The trustea Code facilitates Plant Protection Code (PPC) and FSSAI-compliant tea cultivation that helps eliminate dangerous agro-chemicals from entering the Indian tea production ecosystem. Furthermore, plantation workers are also given extensive training on handling approved chemicals and fertilisers and use of safety equipment for the same.
The holistic approach of the trustea programme creates a harmonious coexistence of tea farms, local communities and the environment, thus creating sustained, positive value for all stakeholders.
Quality management
High quality products and trust in our brands have helped us achieve and retain leadership position across portfolio categories. All our products are manufactured and packed in state-of-the-art facilities that comply and go beyond global food safety standards and regulations. Continuous quality improvement initiatives right from the stage of sourcing help us maintain quality that is appreciated by our consumers.
Our blending facility in Kolkata is the
largest such facility in Asia and is
illuminated by 100% natural lighting.
Interplay of capitals
Our supply partners have operations that conform
to standards we have agreed on for social and
working conditions, safety and environmental
requirements, and agricultural practices. Currently
we have 684 vendors of whom over 250 are local,
ensuring that we promote local employment and
reduce our carbon footprint from the supply chain.
