At Mahindra Sanyo, we believe in inclusive growth. As a sustainable steel manufacturer, we are committed to sustainably sourcing, producing and supplying to our customers. It is integral to understand and vouch for not only our own operations today, but also those of our suppliers and their suppliers in turn - up to the point of extraction. Particularly in the unorganized sector, the need is to get further involved and generate awareness while providing guidance on best practices. That is why, we at our operations try our best to have a positive and long lasting impact on the three important aspects: Environment Sustainability, Social Sustainability and Governance (ESG).
We have a comprehensive procurement policy that includes sustainable sourcing. We have been discussing responsible procurement with our suppliers as well, preparing them for our procurement policy that will additionally consider sustainability parameters.
Our input is recycled steel scrap. We have identified specific areas where we need to work more closely with our suppliers to increase our consumption from recycle input material. We desire to increase local sourcing in coming years.
The aim is to identify the hotspots and improvement opportunities or to manage risks in supply chains. The participation and support allows for identifying the positive impacts and how these can be strengthened, while the risks of negatives can be better managed. In that way it can be a source of inspiration for product business driver and sustainability.
As a policy to engage with our stakeholders specially our suppliers we have made them sign and agree to our Supplier’s Code of Conduct (COC). This practice has been adopted for all the suppliers added. We expect our suppliers to comply with these requirements as a condition to do business with MSSSPL. We have a huge bank of suppliers and every year suppliers are shortlisted for the audit on the basis on the share of business or the nature of business.
Once the supplier qualifies the product sample test and other preliminary enquiry and scrutiny only then they are considered to be a permanent supplier. Once eligible to be taken in as the approved supplier, they are made to sign the Code of Conduct which is a comprehensive document of the working procedures and priorities with MSSSPL. The Code of Conduct in its broad purview contains “Minimum Standards” & “Qualifying Standards”.
In case the suppliers are identified of non-compliance over the qualifying standards while signing the contract they are expected to have targets and action plan for reaching the qualifying standards and in the process we work with our suppliers to help them bridge the gaps and reach the targeted goals.
The supplier’s capacity building on various issues new to them is taken care off and they are motivated and encouraged through the timely recognitions and awards. The capacity building of the suppliers in past has been taken up the company along with collaboration with the BSI. In fact the company has its own internal auditors trained on BS8903. The company also has its auditing SAQ’s prepared with the help of BSI.
With a view to extend sustainability across our supply chain, we have been organizing Sustainable Supply Chain Management workshops for our suppliers since the past four years. Tier 1 suppliers with the organized sector and unorganized sector have been engaged on GHG accounting, LCA, corporate governance etc. We have also been gathering supplier feedback through the Supplier Self-Assessment Questionnaire Besides supply chain policy the interaction with the suppliers down all the tiers gradually is in tune with the Vision.