At JSW Steel, Supply Chain Sustainability is integral to our operational excellence and achieving our ESG commitments. We view suppliers as key partners and build long-term, mutually beneficial relationships with those who share our values of ethical conduct, environmental stewardship, and social responsibility.
Our approach is further guided by the Policy on Responsible and Sustainable Procurement, which embeds environmental, social, ethical, and governance considerations into supplier selection and engagement. Our Supplier Code of Conduct, aligned with UN Global Compact principles, mandates compliance with human rights, labor standards, environmental protection, and anti-corruption practices. We are proud that 100% of input materials are sustainably sourced while encouraging localized procurement within operational districts, strengthening local economies.
To embed sustainability deeper into procurement, we have launched a phased Supply Chain Assessment Program for critical suppliers, incorporating ESG risk evaluations during onboarding and re-evaluation. These assessments, overseen by executive management, enable proactive risk mitigation and continuous improvement.
JSW Steel expects suppliers, contractors, and business partners to conduct business responsibly and ethically. The Supplier Code of Conduct establishes minimum requirements relating to environmental management, human rights, labour practices, health and safety, business ethics, and regulatory compliance.
Suppliers are expected to communicate these requirements throughout their own value chains and demonstrate ongoing compliance with applicable requirements.
For additional understanding please refer: Supplier Code of Conduct.
The Board oversees our sustainable supply chain approach through periodic review of ESG-related priorities and performance.
We integrate environmental, social, and governance considerations into supplier management processes and seeks alignment between procurement practices and Supplier Code of Conduct expectations.
Suppliers that do not meet minimum ESG requirements may be required to implement corrective action plans within specified timelines. Persistent non-compliance may impact ongoing business relationships.
To embed sustainability deeper into procurement, we have launched a phased Supply Chain Assessment Program for critical suppliers, incorporating ESG risk evaluations during onboarding and re-evaluation. These assessments, overseen by executive management, enable proactive risk mitigation and continuous improvement.
Purchasing practices towards suppliers are continuously reviewed and monitored to ensure alignment with the Supplier Code of Conduct and to avoid potential conflicts with ESG requirements.
| Assessment Area | Approach |
|---|---|
| ESG Performance Preference | Suppliers with the score of 75 and above on ESG performance are preferred. |
| Minimum Requirement | We have set a minimum requirement that suppliers should comply with for contract awarding. |
| Corrective Actions | Suppliers that do not meet minimum ESG requirements may be required to implement corrective action plans within agreed timelines. |
| Non-Compliance | Where expectations are not met within the agreed timeframe, suppliers may be temporarily excluded from future supplier consideration until compliance is achieved. |
| Ongoing Relationships | Continued non-compliance may affect future business engagement decisions. |
In order to strengthen the supplier assessment program and promote understanding of ESG among suppliers, we conducted awareness programs.
The topics of the ESG awareness program covered include Emissions management, Energy security, Water security, Circularity and Safety [
Moreover, we conducted awareness sessions for internal stakeholders responsible for managing the purchase related decisions, covering senior management and concerned employees.
We will strive to continue to increase ESG awareness among our suppliers and employees.
JSW Steel adopts a holistic supplier evaluation process that considers quality, price, delivery performance, technical capability, and ESG performance. While procurement decisions are based on an overall assessment of these factors, suppliers demonstrating strong sustainability and responsible business practices are positively recognized and preferred as part of the evaluation process.
We apply a risk-based screening process for significant suppliers. Screening activities consider:
The assessment process also incorporates country-specific, sector-specific, and commodity-specific risk considerations to support informed supplier selection and ongoing monitoring.
Our ‘significant suppliers’ are classified in terms of business relevance to us. Furthermore, in the screening process for significant suppliers, we take into account risks for negative ESG impacts related to a country's political, social, economic, environmental, or regulatory situation along with sector-specific risks and commodity-specific risks such as emissions, energy consumption, etc.
We have initiated a supplier desk-assessment wherein suppliers were requested to provide relevant information on their performance, adopted policies, and practices.
We have initiated to on-site assessments of suppliers during the year. This assessment is carried out by our employees.
We have developed our own supplier assessment questionnaire based on various nationally as well as internationally recognized standards, frameworks and methodology. Based on the assessment, we conduct capacity building of the suppliers to take remedial measures, allowing a time as deemed fit by us for the same, if not remediated they maybe considered for termination of business relations with the concerned suppliers.
Assessments include:
Suppliers may receive guidance, training, awareness programs, technical support, and implementation assistance to improve ESG performance and compliance capabilities.
We have launched a comprehensive supply chain assessment programme targeted at critical suppliers consisting of a systematic assessment of suppliers through structured questionnaires. Rolled out in a phased manner, this initiative is designed to methodically evaluate and elevate the sustainability standards of our suppliers and business associates. Through systematic assessments, we pinpoint areas for improvement, foster transparency, and catalyze positive transformations throughout our supply chain.
We have developed our own supplier assessment questionnaire based on various nationally as well as internationally recognised standards, frameworks and methodology. These criteria are used to evaluate supplier performance across key environmental, social, governance, ethics, and compliance topics.
A total of 131 suppliers are being assessed – and currently ~4% of them have been identified as having substantial potential environmental and social impacts, following which they have been provided with corrective action plans.
Currently no suppliers have been terminated on the basis of identified actual/potential negative ESG impact. We seek continuous improvement through collaboration, capacity building, and constructive engagement with suppliers. The topics of the ESG awareness program cover emissions management, energy security, water security, circularity, safety, etc. Moreover, we conducted awareness sessions for internal stakeholders responsible for managing the purchase related decisions, covering senior management and concerned employees.
JSW Steel is committed to building a resilient, responsible, and sustainable supply chain through systematic supplier screening, assessment, and development initiatives. We conduct ESG assessments of significant suppliers through a combination of desk-based reviews, on-site assessments, documentation verification, and engagement activities. The assessment process evaluates suppliers across key environmental, social, governance, ethics, and business conduct parameters.
Suppliers identified with actual or potential ESG risks are engaged through corrective action plans, capacity-building initiatives, awareness programmes, and technical guidance to support continuous improvement. We prioritizes collaborative engagement and works closely with suppliers to enhance ESG performance, strengthen risk management practices, and promote alignment with our sustainability expectations and Supplier Code of Conduct.
The table below summarizes the coverage and progress of our supplier assessment and development programme during FY2025-26.
| KPI | FY2025-26 |
|---|---|
| Number of unique significant suppliers assessed through desk and/or on-site assessments | 48 |
| Number of significant suppliers identified with substantial actual or potential negative ESG impacts | 6 |
| Percentage of assessed suppliers identified with substantial actual or potential negative ESG impacts | 12.5% |
| Number of significant suppliers provided with corrective action/improvement plans | 6 |
| Percentage of suppliers with identified impacts covered by corrective action/improvement plans | 12.5% |
| Number of suppliers terminated due to substantial actual or potential negative ESG impacts | 0 |
| Supplier awareness and capacity-building programmes conducted | |
| Scope of assessment |
*Subject to periodic review and closure of corrective actions.
JSW Steel complements supplier assessments with supplier development initiatives aimed at strengthening ESG performance across the value chain. These initiatives include ESG awareness programmes, guidance on compliance with the Supplier Code of Conduct, support for implementing corrective actions, and technical assistance on sustainability topics such as climate change, emissions management, energy efficiency, water stewardship, circular economy practices, occupational health and safety, business ethics, and responsible sourcing. Through these efforts, we seek to foster long-term partnerships and drive continuous improvement across its supplier ecosystem.
Please refer to our Integrated Annual Report FY 2025-26 for more details on out Supply Chain Sustainability
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