Social – responsible sourcing
Comprehensive supplier assessments help us proactively manage Environmental, Social, and Governance (ESG) risks within our supply chain. By adopting a collaborative approach with our value chain partners, we aim to establish a resilient and responsible supply chain, that aligns with our ESG goals and strategies.
% of total procurement budget spent on local suppliers (for significant locations of operations)
Suppliers are our key stakeholders in our sustainability journey, and we take a collaborative approach with them to integrate ESG principles into our supply chain operations. We have established a comprehensive Supplier ESG programme, driven by well-defined targets, KPIs and continuous monitoring and tracking of progress. Our Board of Directors is responsible to provide the oversight for the implementation of the Supplier ESG programme. We focus on conducting supplier assessments and capacity building of our suppliers to enhance their ESG performance compliance with Supplier Code of Conduct. The supply chain and HSE – Sustainability team jointly manages the training and education, and HSE assessment criteria to ensure conformance with ATGL’s commitments. We encourage and support our suppliers to align their operations with globally recognised standards, including SA8000, ISO 14001, and ISO 45001.
Our Supplier Code of Conduct respects the core conventions of the International Labour Organisation (ILO), principles of UN Global Compact and spirit of the United Nations' Universal Declaration of Human Rights and the prevalent industry standards. All our vendors are required to strictly adhere with the Supplier Code of Conduct.
We define our Tier 1 suppliers as those engaged in large-scale significant transactions with our Company. Critical suppliers are identified as those with essential role and high impact on ATGL’s operations.
Total number of Tier-1 suppliers
Total number of significant suppliers in Tier-1
Percentage of total spend on significant suppliers in Tier-1
Our Contractor Safety Management portal and SAP-based Ariba portal facilitate new vendor screening by collecting their ESG and techno-commercial information. Based on this information along with the pre-defined supplier assessment parameters, vendors are assigned a score between 0 - 2. Vendor registration and onboarding is initiated only after they successfully clear the screening process. Prior to awarding the contract, due diligence and evaluation on Contractors Safety Management is carried out thoroughly.
Contractor safety management is one of the significant component for suppliers where all the associated partners are annually assessed for safety performance through third-party agency as a part of Samarthan Green Cap Programme. Pre-qualification audit carried out for all the critical suppliers to evaluate them prior onboarding.
Additionally, we conduct thorough supplier due diligence through third-party agencies, covering both new and existing suppliers, with a focus on Tier 1 suppliers. Aligned with our third-party Due Diligence (DD) policy, these assessments help us proactively mitigate potential supply chain risks by assessing country-specific, sector-specific and commodity-specific risks. These evaluations enable us to identify our critical suppliers and assess their compliance with our Supplier Code of Conduct.
On an ongoing basis, we engage with the suppliers by developing and supporting the implementation of post-assessment corrective action plans, while actively monitoring their ESG performance. We also conduct mock audits based on the ESG checklist parameters and provide capacity building programmes to enhance supplier familiarisation and performance.
Aiming to help suppliers enhance their ESG performance and create a safe and secure working environment within their facilities, we train all our suppliers on the Supplier Code of Conduct. We also conduct health and safety awareness sessions and train employees and contractors on HSE risk prevention and emergency procedures. Additionally, we engage with our suppliers through recognition programmes, surveys, and feedback mechanisms to continuously improve our supply chain practices and supplier ESG programme. The objective of supplier engagement is to help them achieve optimal ESG performance and produce high-quality goods and services.
The annual “Sampark” Partners meet for FY 2024-25 by ATGL, testifies our commitment to engaging with our partners fostering long-term mutually beneficial ties. The event celebrated the spirit of collaboration, innovation and partnership bringing together our valued vendors from across the country, whose contributions are vital to our success. The agenda featured insights into ATGL’s future roadmap, operational goals, growth potential and technology showcase. The meet provided a platform for interactive feedback and knowledge exchange, culminating in a partner recognition ceremony and a networking dinner.
Advancing our commitment to continuous improvement, we have strengthened our contractor selection process. We have enhanced our existing contractor selection procedure by formalising the use of Site Registers and performance feedback mechanism through vendor performance scorecard for continued association and engagement.
ATGL deeply values MSME vendors as key partners in its growth trajectory and is fully committed to ensuring their payments are made in compliance with the government guidelines. The necessary steps have been taken to uphold our commitment towards MSME vendors.
Total number of suppliers in capacity-building programmes (Sampark)
Percentage of significant suppliers in programmes
We have a target of 100% coverage for significant suppliers in capacity-building programmes, which was achieved in FY 2023-24.
