Page 86 - Tata Steel One Report 2024-Eng-Ebook HY

Business Operation and Performance Driving Business Towards Sustainability
Corporate Governance Policy Financial Statements Attachments
Sustainable Supply Chain
Policies on Procurement
and Sustainable Supply Chain
Tata Steel (Thailand) Public Company Limited follows a policy under the framework of the Tata Code of Conduct (TCoC) in treating suppliers with transparency, accountability and fairness which considered as the same uniform practices for Tata Steel Group including paying attention to the collaboration between the Company and Suppliers.
Analysis, Selection of Business Partner and Risk Assessment
The Company has created a suppliers’ database by checking the qualifications of those who will be registered as the Company’s suppliers, who will fulfil 5 criteria - technical performance, quality control and assurance, safety / health / environment, finance / ethics, and labor law compliance. The Company has conducted a supplier risk assessment to support its operation continuously by assessing the risk of the major group suppliers in 2 dimensions as mentioned below:
1.The suppliers who might pose risk to the Company’s business operations are considered from specified criteria, such as, the spend base per annum in excess of 10 million Baht, supply of material and services that directly impact finish goods’ quality or irreplaceable supplier / manufacturer / services, etc.
2.The suppliers with the risk of environment, society, and corporate governance. In addition to the suppliers’ registration assessment according to the above criteria, the Company has also considered using various strategies
to reduce the risk of shortage of the main raw materials for production. To mitigate the risks, the Company, also exchanges supplier information within the Tata Steel Group to access reliable sources. Moreover, the Company works closely with suppliers and users to find alternative sources of raw materials to reduce the risk of raw material shortage. To manage suppliers related to service and transportation, the Company gives importance to the management of safety, health, environment, and society.
To evaluate high-risk suppliers, the Company uses a combination of onsite / online meetings and a self- audit questionnaire. By implementing this assessment process, the Company aims to ensure that its supply chain operates in a sustainable manner, while mitigating potential risks to its business operations.
Over the past three years, 100% of critical Tier 1 vendors have been cumulatively evaluated on environmental, social, and corporate governance (ESG) performance.
Evaluating, Tracking and Auditing Supplier Performance
The Company evaluates the annual performance of suppliers in 4 aspects – (i) quality of goods and services, (ii) on-time delivery, (iii) safety, health and environment, and (iv) law and ethics compliance to ensure that the suppliers have the potential in performing and running the business on the same basis as the Company. Goods and services delivered to the Company are of the desired quality in accordance with the Company's requirement, policy, performance standard, and mission. During the
84 Tata Steel (Thailand) Public Company Limited