SECTION E: PRINCIPLE-WISE PERFORMANCE
PRINCIPLE 1: Ethics, Transparency and Accountability
- Does the policy relating to ethics, bribery and corruption cover only the company? Yes/No. Does it extend to the Group/Joint Ventures/Suppliers/Contractors/NGOs/Others?
The Company has adopted the TCoC to remain consistently vigilant and ensure ethical conduct of its operations. All internal and external stakeholders of the Tata Group are expected to work within boundaries of the TCoC. The Company ensures compliance of ethical standards by its vendors and contractors through appropriate clauses in its work contracts to which they are obligated. Generally, the contract includes clauses in relation to Human Rights Protection, Corruption practices and other things related to ethics. Training and awareness on TCoC is provided to all employees and relevant stakeholders are also made aware of the same from time to time.
The Company also has a whistle blower mechanism, which is being governed by the Whistle Blower Policy. Through this it has placed mechanisms for ensuring confidentialityand protecting the whistle blower from any harassment/ victimization. The policy covers instances pertaining to any unfair practice like retaliation, threat or intimidation of termination/suspension of service, disciplinary action, transfer, demotion, refusal of promotion, or the like including any direct or indirect use of authority to obstruct the Whistle Blower’s right to continue to perform his duties/ functions including making further Protected Disclosure. The policy is directly monitored by the Chairman of the Audit Committee and the Group Ethics Officer.
Ethics Helpline:
The Company has an ethics helpline where employees can place anonymous complaints against ethics violations as per the policy of the Company. The ethics helpline can be reached in the following ways:
Ethics Hotline:1800 1032931 / 022 2287 1839.
Oral reports will normally be documented by the Chief Ethics Counselor / Chairman of the Audit Committee by accessing the voice mail by a written transcription of the oral report.
Written application to Ethics and compliance:
All concerns can be reported to Chief Ethics Counselor / Chairman of the Audit Committee in Hindi, English or any regional language.
- How many stakeholder complaints have been received in the past financial year and what percentage was satisfactorily resolved by the management? If so, provide details thereof, in about 50 words or so.
The Company has setup an investor grievance mechanism to respond to investor grievances in a timely and appropriate manner. The investor grievances are also reviewed at the Board level by an Investors’ Grievance Committee and immediate action is taken to resolve the same. The TCoC concerns are resolved through internal review mechanism by Ethics Counselor and Senior Management. Both the Commercial Vehicles Business Unit and Passenger Vehicles Business Unit have established robust customer care systems which track customer complaints and responds to them in the minimum time possible.
PRINCIPLE 2: Product Life Cycle Sustainability
- List up to 3 of your products or services whose design has incorporated social or environmental concerns, risks and/or opportunities.
The Company is a leading automobile manufacturer of India and has played a significant role over the years in contributing to economic growth through its commercial vehicles and passenger cars which transport people, goods and help deliver services on time. The Company realizes its responsibility as a growth enabler and endeavors to create vehicles which will promote entrepreneurship. The Company is also cognizant of the environmental impacts caused during production and lifecycle of its products and continually strives to innovate to reduce such impacts. The Company has become the first Indian Manufacturer to commercially deploy Series Hybrid Technology in India, through the delivery of 25 ‘Tata Starbus Hybrid Electric Bus’ with Full Low Floor configuration, to the Mumbai Metropolitan Region Development Authority (MMRDA). The Company has also delivered the first set of Tigor Electric Vehicles (EVs) to state-run Energy Efficiency Services Limited (EESL) as part of their initiative to procure 10,000 electric vehicles. Below are few of the products which have been designed to address social or environmental concerns, risks and/or opportunities.
- For each such product, provide the following details in respect of resource use (energy, water, raw material etc.) per unit of product (optional):
- Reduction during sourcing/production/distribution achieved since the previous year throughout the value chain?
In order to reduce the vehicular weight, the focus of the Company is on the new and improved technologies so as to achieve higher fuel efficiency as well as it should reduce the environmental impact created by the vehicle, including its material sourcing, production, use and endof- life stages. Also in order to reduce the fuel consumption, the Company focuses on researching, developing and producing new technologies, such as hybrid engines, electric cars, fuel-cell vehicles. Various development programs to reduce the consumption of fuel, like the use of lightweight materials, reducing parasitic losses through the driveline and improvements in aerodynamics are also studied and implemented by the Company. At the sourcing stage, the Company work with its suppliers in order to reduce the environmental impacts like, by making use of returnable and recyclable packing solutions for majority of the components thereby managing the cost and the quality, as well as reducing the material use and avoiding waste generation. The Company was extensively working on green and light weighting technologies in products going beyond the basic Environmental regulatory compliance. The Company continuously strives to improve the sustainability performance of the product on Life Cycle basis.
- Reduction during usage by consumers (energy, water) has been achieved since the previous year?
The class leading fuel efficiencies of the Company’s vehicles enable the customers to achieve fuel savings which translate into cost savings as well. The REVOTRON engine epitomizes the FuelNext philosophy of the Company. It is developed using a range of eco-friendly and future oriented technologies. It also incorporates latest know-how like multi drive modes, allowing the best of economy and driving pleasure. The Company’s value proposition in the commercial vehicles is aimed to create vehicles with lowest overall cost of ownership. The Recon business, which reconditions aggregates, extends the life of the aggregates and eliminates the use of fresh resources that might have been consumed for new aggregates.
- Does the company have procedures in place for sustainable sourcing (including transportation)? If yes, what percentage of your inputs was sourced sustainably?
The Company continually works with its vendors and suppliers to reduce the environmental impacts of sourcing. The Company has an Environment Procurement Policy and Sustainability Policy to engage with its value chain partners on environmental sustainability. The Company has launched a sustainable supply chain initiative in Fiscal 2017. Through this initiative the Company aims to firstly create awareness on the subject, ask for suppliers’ sustainability data and subsequently conduct a site assessment for data verification. In Phase I of this initiative, the Company has completed site assessment of 52 suppliers. Phase II of this initiative was completed in Fiscal 2018 where total of 66 suppliers were assessed at their sites. The Company plans to take this further to the dealers in the coming years. The Company noted a significant initiatives that have been taken to reduce the packaging impacts in the supply chain by using recycled / returnable packaging solutions for various components sourced. Transportation and logistics optimization is an ongoing activity to reduce the related environmental impacts. The Pantnagar and Sanand plants have created a vendor park model wherein the key vendors are situated surrounding the plant. This not only enables to optimize the production related costs but also significantly reduces the environmental impact of transportation of components.
- Has the company taken any steps to procure goods and services from local & small producers, including communities surrounding their place of work? If yes, what steps have been taken to improve their capacity and capability of local and small vendors?
During Fiscal 2018, the Company has procured 57.88% of the materials (by value) from local sources, where local is defined as the State in which the manufacturing plant is established.
The Company takes significant initiatives in enhancing the capabilities of local and small vendors. Through the AA policy initiatives, in this Fiscal the Company has associated with 20 SC/ST entrepreneurs in the supply chain and extended business of `10.88 crore to them.
To ensure reliable and responsible suppliers for automotive production and service parts, the Company expects all its suppliers to adopt the ISO 9001/TS 16949 quality management system frameworks. The Company also encourage its dealers to adopt quality, environmental and safety management systems.In addition, the Company has an Environment Procurement Policy and Sustainability Policy to engage with its value chain partners on environmental sustainability. The Company has launched a sustainable supply chain initiative in Fiscal 2017. Through this initiative the Company aims to firstly create awareness on the subject, ask for suppliers’ sustainability data and subsequently conduct a site assessment for data verification.
- Does the company have a mechanism to recycle products and waste? If yes what is the percentage of recycling of products and waste (separately as <5%, 5-10%, >10%). Also, provide details thereof, in about 50 words or so.
The Company ongoing endeavor to have a mechanismto recycle its products and limit the waste arising out of production of vehicles. The Company has initiated well defined program ‘Prolife’. The objective is to reduce the waste and to minimize the need of raw materials to produce a brand new item. In Fiscal 2018, total of 26,993 components were reconditioned. The re-conditioned long blocks are also being exported to international markets. Hazardous waste is disposed as per regulatory requirements through the Common Hazardous Waste Treatment, Storage & Disposal Facilities (CHWTSDF), authorized re-cyclers and co-processing in cement plants.