Godrej Sustainability Report

54 GreenCo Rating is the "first of its kind in the World" holistic framework that evaluates companies on the environmental friendliness of their activities using life cycle approach. Implementation of GreenCo rating provides leadership and guidance to companies on how to make products, services and operations greener. Industry personnel are trained on the latest Green concepts and facilitated for implementing better systems and implementing global best practices in green. The Green Company Rating System advocates a performance based approach. The rating system evaluates green features of companies against the performance parameters like energy efficiency , water conservation , waste management , GHG mitigation , product steward- ship. Along with implementation of this certification at its facilities , G&B also encourages its key suppliers to undergo evaluation for SME version of the GreenCo rating system. G&B plant and purchase teams worked diligently with group of suppliers to prepare the program and in the process improve the environmental performance of these suppliers. SUPPLY CHAIN SUSTAINABILITY The Procurement function at G&B aims to provide a substantial and sustainable value contribution for business continuity, in line with Godrej’s vision to do business sustainably. In order to build a sustainable value chain, the Company encourages its suppliers to be conscious in their business operations. The Company is committed to working in partnership with its suppliers to realise the full value of its relationships and to positively contribute to sustainable outcomes. The Company has in place a Supplier Code of Conduct (COC), based upon G&B’s values of Trust, Integrity, Respect, To Serve & Environment. The COC serves as a guidance document for suppliers to meet industry best practices. While the Company currently does not have formal mechanisms to screen new suppliers based on sustainability-criteria, it creates awareness among its suppliers and encourages them to adopt sustainable practices. The Company has undertaken following initiatives to ensure supply chain sustainability and responsible business operations: • Supplier Cluster Program for operational excellence • GreenCo certifications for suppliers • Reduce, Reuse and Recycle (3R) implementation • Value engineering • Reductions in lead time • Inventory optimization • Kaizen The Company sources its input materials and other services from across the globe without compromising on quality and value. The Company wants to optimise its infrastructure processes and systems and promote local procurement to deliver competitive customer service. Preference may be given to local suppliers if they satisfy the requisite specifications. The deeper supplier engagement achieved over last 3-4 years has resulted in creating a good supplier base more in tune with business ethos , social commitment and agile business needs of the company. Many of the supplies have also received national and regional level awards for the outstanding work in area of kaizan , manufacturing practices, energy conservation as well as CSR work in their communities. Greenco Certifed Vendors ( Till March 2019 ) Appliances Shirwal Appliances Mohali Interio shirwal & Mumbai 2 1 1 GREENCO RATINGS DIVISION PLATINUM 13 4 2 GOLD 2 4 6 SILVER 6 6 3 BRONZE 1 1 0 CERTIFIED 24 16 12 TOTAL

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