40 2. Organise the SCM function towards sustainability We have set sustainability priorities within the SCM function to ensure that the activities undertaken will result in the most sustainable outcomes. We have identified our key starting materials (KSM) suppliers as the target group to work on creating sustainable procurement actions. Buyers training Our supply chain function consists of members across sourcing, procurement and logistics with dedicated teams serving the unique needs of both the Discovery and CMC services. All the buyers (100%) have received training on sustainable procurement and are aware of the significance and the nuances of the ESG requirements.The function follows a lean sourcing process to improve the procurement speed and accuracy while effectively managing supplier risk. A member of the Sustainability team conducted training for our buyers on the significance of supplier code of conduct and sustainable procurement framework. As the buyers carry out supplier ESG assessment, we ensure that they are aware of the significance and the nuances of the ESG requirements. We have mandated compulsory training in the Code of Supplier Conduct and Ethics policy for the buyers to ensure that the suppliers deliver on the expected commitments. Training suppliers We calibrate our capability building approaches considering ESG related priorities identified during screening of the suppliers. For example, few of our KSM suppliers are already EcoVadis certified and demonstrate goals and actions in ESG priority areas. In the reporting year, one of our key suppliers achieved a gold rating by EcoVadis with engaged partnership extended by Sai. On the other hand we have suppliers who need to be inducted into ESG priorities and we engage with them through training their key staff along with emphasising Sai’s ESG expectations from them. We also nominate such suppliers to PSCI conferences held for the members and leverage the resources. Some of the topics mentioned here were covered in a conference hosted by PSCI in February 2024 which was attended by our key suppliers. In the reporting year, two in-person trainings were conducted for suppliers. The topics ranged from the importance of ESG to business and best practices of ESG at Sai on resource conservation, water and waste management, DEI, importance of diversity in workforce, elements of SA 8000, various sustainability frameworks like SDG, UNGC, CDP and EcoVadis , Code of conduct and ethics, Information security, POSH. We also made them aware of our various policies on E,S and G and sustainability strategy. As we are in the CDMO business, raw material procurement is linked to product requirement at the customer end. Therefore, we categorise our suppliers on project status which is based on customer requirement. The categories are: 1. Runner projects: Ongoing projects which the customers need regularly in the year 2. Repeater projects: The projects are executed once or twice in a year and would be re-initiated after 2 to 3 years 3. Stranger projects: The projects are new at Sai Life Sciences The classification helps us to engage with our supply chain partners in the runner projects more closely to ensure that the risks are minimised and sustainability outcomes are prioritised. Robust model for supplier risk assessment Built on the PSCI framework, customized to CDMO industry; Assessment on 33 attributes
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