33 Sustainable procurement through supplier engagement We are committed to ensuring HSE, quality, and statutory related outcomes in our supply chain. Such a move is pivotal for risk mitigation, and it also has a positive upside as our customers recognize our engagement with our suppliers. We have qualified the Ecovadis assessment, a requirement of our global key customers, which has sustainable procurement as an important factor in the scoring criteria. The procurement cycle begins with an initial focus on qualification and then later building partnerships with strategic suppliers. Total new KSM vendors registered in FY21 Number of vendors who underwent HSE screening Percentage of vendors who underwent HSE screening 25 25 100% Strategic supplies and prioritizing sustainability By instituting a supplier code that emphasizes HSE management, statutory compliance, and quality management, we select and classify our suppliers as strategic. Almost 45% of our total supplier base, with 60% of our total spend allocated towards this base, are identified with the support of third-party agencies. As part of engaging and developing our suppliers, we also take a facilitative approach towards improvement which is mutually gainful across sustainability parameters. Additionally, we are developing product-specific engagement Initiatives which are focused on: • Encouraging value-added services • Procuring a basket of products to retain & engage the supplier • Initiating vendor managed inventory practice to progress transactional suppliers into strategic ones Improving the environmental footprint in our supply arrangement For a large volume raw material, where our annual requirement is approximately 130 tonnes per annum, we proactively engaged with the supplier to change the packaging material. By replacing paper-based packaging with re-usable containers, we have stopped disposing almost 10 tonnes of paper per annum.
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