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SUSTAINABLE
PROCUREMENT
GUIDELINES
Governance
Social Environmental
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Preface
We, at Hero MotoCorp Ltd., are continuously striving for synergies with environment & society,
by offering products and services that meet the quality, performance and price aspirations of
our customers. While doing so, we maintain the highest standards of environmental, ethical
and societal responsibilities.
As we embark on our journey towards becoming one of the sustainability leaders in the
automobile sector, we seek the support of our large and diverse Hero MotoCorp family. We will
continue to work with fortitude towards our targets, with our core value system firmly in place
and pursuing the larger agenda of a greener, inclusive, equitable and economically stable
society.
Hero MotoCorp is committed towards promoting sustainability across its value chain. Through
collaboration with our business partners, we aim to enhance business relationships, ensure the
highest quality standards and create a sustainable supply chain. We view our suppliers and
business partners as an extension of our global enterprise and an integral part of our
company’s long-term success. Through collaboration with best-in-class suppliers, we would
like our Suppliers and Business Partners to gain full understanding of our expectations
towards sustainable development and good corporate citizenship, to assure legal compliance at
all times, and to work together with Hero MotoCorp in the spirit expressed in these Sustainable
Procurement Guidelines.
We are setting out to improve the sustainability of our supply chain by strengthening our
Sustainable Procurement Guidelines. These guidelines aim to ensure that our direct suppliers
and other business partners in our value chain understand our approach to environmental and
social issues. This document clearly sets out Hero MotoCorp’s requirements for our business
partners and helps them work beyond legal compliance.
Our expectation is that our business partners/suppliers will not only implement necessary
policies and procedures at their own company, but they will also promote and ensure the same
responsible behaviour in their own supply chains.
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Contents
Sustainable Procurement Guidelines .......................................................................................................... 4
1. Quality and Delivery of Products and Services ....................................................................... ４
2. Environmental Protection ................................................................................................................. ５
3. Human Rights .......................................................................................................................................... ６
3.1. Non-discrimination ..................................................................................................................... ６
3.2. Harassment ..................................................................................................................................... ７
3.3. Child Labour.................................................................................................................................... ７
3.4. Forced Labour ................................................................................................................................ ７
3.5. Wages and Benefits ..................................................................................................................... ７
3.6. Working Hours .............................................................................................................................. ７
3.7. Freedom of Association ............................................................................................................. ７
3.8. Safe and Healthy Working Environment .......................................................................... ８
3.9. Compliance beyond borders ................................................................................................... ８
4. Corporate Social Responsibility (CSR) ........................................................................................ ８
5. Code of Conduct...................................................................................................................................... ８
6. Legal Compliance ................................................................................................................................... ９
7. Confidentiality and Protection of Intellectual Property ..................................................... ９
8. Anti-Bribery ............................................................................................................................................. ９
9. Anti-Competitive Behaviour ....................................................................................................... １０
10. Compliance with Sustainable Procurement Guidelines ............................................ １０
11. Vigil Mechanism/Whistle-blower and Grievance Redressal .................................. １０
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Sustainable Procurement Guidelines
It is pertinent that business enterprises are economic organs of society and draw on societal
resources. We believe that a company's performance must be measured by its Triple Bottom
Line contribution to building economic, social and environmental capital towards enhancing
environmental and societal sustainability.
At Hero MotoCorp, we remain committed to advancing the quality of life through the products
and services we offer. Therefore, we hope to contribute to the realization of a sustainable
society through the following philosophy and activities in addition to implementing thorough
management systems.
We and our suppliers/business partners need to work together as a single enterprise. We must
maintain close communication, exchanging ideas frankly and coming to terms with each other
on all matters of importance. We would like to carry out the following philosophy together
with our suppliers and business partners:
1. Organize culture of trust between workers and management and develop a work
climate to promote human development.
2. Improve our business operations continuously, always driving for innovation and
evolution.
3. Maintain transparent and two-way communication for automobile manufacturing.
4. Go to the source to find the facts to make correct decisions, build consensus, and achieve
goals.
5. Establish an effective Compliance Management system within the business strategy.
1. Quality and Delivery of Products and Services
Excellence in quality is the core value of Hero MotoCorp philosophy. We expect that our
suppliers and business partners are committed at all levels to achieve high quality in
whatever we do, particularly in our products and services which will meet and exceed
customer's growing aspirations through:
1. Innovation in products, processes and services.
2. Continuous improvement in our total quality management systems.
3. Teamwork and responsibility.
Also, suppliers and business partners are expected to provide the best possible products at
the lowest possible cost. This must also consider providing in the timeliest manner on a
stable and long-term basis. Suppliers and business partners need to undertake product
development and deploy manufacturing processes that address the customers’ needs and
wants of today and tomorrow. These include:
1. Provide a safe environment where workers can concentrate their efforts on
manufacturing, and make products of good quality.
2. Work towards achieving high quality in development and production.
3. Contribute to lean efficiency through flexible, error-free execution in preparation for
mass production, in mass production, and in delivery.
4. Offer the most competitive cost in the world and develop new innovative production
technologies to support continuing cost reduction.
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2. Environmental Protection
We are committed to demonstrate excellence in our environmental performance on a
continuous basis, as an intrinsic element of our corporate philosophy.
To achieve, this we commit ourselves to:
1. Integrate environmental attributes and cleaner production in all our business
processes and practices with specific consideration to substitution of hazardous
chemicals and strengthening the greening of supply chain.
2. Continue product innovations to improve environmental compatibility.
3. Comply with all applicable environmental legislation and also controlling our
environmental discharges through the principles of "alara" (as low as reasonably
achievable).
4. Institutionalize resource conservation in the areas of oil, water, electrical energy,
paints and chemicals.
5. Enhance environmental awareness of our employees and dealers / vendors, while
promoting their involvement in ensuring sound environmental management.
At Hero MotoCorp, environmental protection and preservation is one of the core business
values. As a responsible corporate citizen, we believe that we can improve environmental
management not only in our premises but also partner with vendors to ensure that they
adopt similar environmental management strategies.
We are continuously working to improve our environmental performance throughout our
own operations and count on our suppliers/business partners to take a similar approach.
To this end, in addition to ensuring mandatory legal compliance, we expect that our
suppliers/business partners take an active approach in environmental initiatives in
their business activities. Such environmental initiatives would be, but not limited to:
1. Establish the environmental footprint of their operations.
2. Develop green management policies to promote conservation of natural resources.
3. Monitor the pollution load (emissions, effluents, wastes; hazardous/ non-
hazardous/other types, etc.) released in the ambient environment.
4. Set targets to reduce water, energy utilization and waste generation from the
processes.
5. Eliminate the use of single use plastics in the products, processes, component’s
packaging and comply with Central Pollution Control Board’s Plastic waste
management rules, as applicable. Wherever it is not possible to avoid plastic
packaging, the thickness should be maintained as per applicable laws. Improve
environmental performance by adopting pollution prevention strategies.
6. Establish a robust Environmental Management System for managing environmental
responsibilities efficiently in a way that is integrated into the overall operations.
7. Cooperate to collect information on the chemical content of our products and manage
our supply chain to comply with general rules for producing, importing, labelling and
using chemicals.
8. Ensure that all articles and materials that are classified as hazardous have to be
packaged, marked, labelled and documented in accordance with all applicable
regulations to ensure clear hazard communication. Comply with regulations like
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REACH — Regulation for Registration, Evaluation, Authorisation and Restriction of
Chemicals, if applicable.
9. Implement initiatives to reduce the environmental impact throughout the product
life cycle of the delivered products.
10. Take an active approach to reduce GHG emissions of the delivered products through
initiatives such as reducing use of raw materials by reducing the weight of parts,
promoting low GHG emission raw materials during production, promoting use of
recycling materials and promoting use of renewable materials.
11. Monitor the air emissions and maintain emissions into the ambient air within
applicable permissible limits.
12. Regularly review the energy efficiency performance and adopt relevant improvement
measures to reduce the associated resources and consumption in the long-term;
13. Reduce the impact on water at their operations as much as possible by implement
activities within all their operations that reduce negative impact on water such as
reduction of the amount of water used, use of rain water, recycling water at plants,
improving water quality of discharged water and conservation of intake source.
14. Improve the re-usability, recoverability and recyclability rate and reducing the
volume of automotive shredder residue. Make efforts to expand the use of renewable
resources and recycled materials.
15. Give maximum consideration to biodiversity and implement initiatives in order to
establish a society in harmony with nature.
3. Human Rights
We are continuously working to improve our human rights performance throughout our
own operations and count on our suppliers/business partners to take a similar approach.
To this end, in addition to ensuring mandatory legal compliance, we expect that our
suppliers/business partners take an active approach in human rights issues in their
business activities.
3.1. Non-discrimination
Do not discriminate on the basis of personal characteristics protected by local
applicable laws and regulations, such as race, ethnic and national origin, religion, age,
gender, etc.-with regards to all aspects of employment, including application process,
hiring, promotion, compensation, access to training, job assignment, wages, benefits,
discipline, termination and/or retirement.
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3.2. Harassment
Ensure safe & secure workplace for your workforce which is free from harassment of
any form involving verbal, visual or physical conduct that negatively interferes with
work performance, diminishes the dignity of any employee, or creates an
intimidating, hostile or otherwise offensive work environment.
Promote equal opportunities to all your employees and qualified applicants for
employment, without regard to their race, caste, religion, colour, ancestry, marital
status, gender, age, nationality and disability.
Implement procedures for prompt reporting and examination of any harassment
complaints and enable employees to report any instances of harassment without fear
of reprisal, intimidation, or harassment.
3.3. Child Labour
Do not use child labour.
Suppliers and business partner must comply with the laws and regulations related to
minimum working age, as applicable from time to time. No employee of any age,
including apprentices or vocational students, may be employed in breach and/or
contravention of any applicable law & regulations governing the minimum age for
work.
3.4. Forced Labour
Do not use forced labour. Ensure that all work is voluntary and employees are free to
leave work or terminate their employment and comply with local applicable laws and
regulations.
3.5. Wages and Benefits
Pay wages in compliance with local applicable laws and regulations, including those
relating to minimum wages, overtime hours, deduction from wage, piece rates and
other elements of compensation. Provide legally mandated benefits. Ensure wages,
other compensation, benefits and deductions are detailed and explained, in
compliance with local applicable laws and regulations, clearly and regularly to
employees.
3.6. Working Hours
Comply with local applicable laws and regulations governing employees’ working
hours, including overtime work.
3.7. Freedom of Association
Recognize employees’ right to freely associate, or not to associate, complying with
local applicable laws and regulations in which we operate. Encourage employees to
communicate openly and directly with management without fear of reprisal,
intimidation, or harassment.
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3.8. Safe and Healthy Working Environment
We believe that safe work practices lead to better business performance, motivated
workforce and higher productivity. Place the highest priority on safety and health
programmes and policies at work, so that each employee is able to work without
undue concerns, and strive to prevent accidents and injuries from happening at work.
Support efforts to improve the health of employees through health promotion
activities at work, guidance for preventing illness, and other means.
Create a safety culture in the organization by:
1. Integrating safety and health matters in all activities.
2. Promoting safety and health awareness amongst employees, suppliers and
contractors.
3. Continuous improvements in safety performance through precautions besides
participation and training of employees.
4. Ensuring compliance with all applicable legislative requirements.
5. Empowering employees to ensure safety in their respective work places.
3.9. Compliance beyond borders
The Supplier must ensure that there should not be any flow of funds to or from any
unknown sources and proper due diligence should be performed to ensure that the
source/flow of funds are to/from known sources and through identified channels in
compliance with money laundry and other laws applicable for the time being in force.
It must be ensured that there is no funding for any illegal purposes.
The Supplier shall comply with the requirements regarding the restrictions related to
conflict minerals and shall ensure that any product supplied to the Company does not
contain any conflict mineral.
This should be adhered at their own company as well as in their supply chains.
4. Corporate Social Responsibility (CSR)
To promote its prosperity and development, and to conduct social contribution activities
leading to solution of such challenges in cooperation with the local communities, Hero
MotoCorp takes CSR initiatives. We expect that our suppliers/business partners take an
active approach in voluntary CSR initiatives.
5. Code of Conduct
Hero MotoCorp has implemented the Code of Conduct for its employees which is available
on our website. We expect all value chain partners to develop and implement similar Code
in their organizations.
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6. Legal Compliance
Hero MotoCorp’s suppliers and value chain partners must:
1. Comply with applicable laws and regulations of each country and region as well as the
spirit thereof.
2. Establish and implement policies, structure and mechanisms for ensuring and verifying
legal compliance including a code of conduct, confidential compliance hotline and
training.
7. Confidentiality and Protection of Intellectual Property
Hero MotoCorp’s suppliers and value chain partners are expected to:
1. Manage and protect company’s confidential information and use such information as
per confidential obligations agreed with Hero MotoCorp. Obtain confidential
information concerning other companies only from authorized personnel by legitimate
means.
2. Ensure disclosure of company’s Confidential Information to its subsidiaries, associates,
directors, employees and third party vendors, sub-contractors (collectively, “Affiliates”)
strictly on a need to know basis and only for the purpose of discharging its agreed
obligation with the company. Further, also ensure that its Affiliates with whom it shares
the Confidential Information are bound by the similar confidentiality obligations and
shall be absolutely liable for any breach of confidentiality obligations committed by its
Affiliates.
3. Strive to disclose to stakeholders such information as is pertinent to them, including
management, financial condition, environmental preservation, community and social
contribution, in a timely and fair manner and to build and maintain positive
relationships with stakeholders through open and fair communication.
4. Continually monitor and protect all intellectual property of the company against any
infringement by others.
5. Do not infringe the intellectual property (such as patents, utilities, designs and
trademarks) of others, illegally use such intellectual property or make illegal copies of
software or publications.
8. Anti-Bribery
We believe in promoting a fair, transparent, ethical and professional work environment.
We request our suppliers and business partners to comply with following guidelines:
1. Comply with all applicable anti-bribery / anti-corruption laws and regulations,
including, without limitation, any relevant foreign laws and regulations which would be
applicable, as well as with all other similar applicable laws and regulations.
2. Comply with applicable laws and regulations concerning political donations or
contributions and strive to build transparent and fair relationships with political parties
or administrative bodies.
3. Do not engage in giving or receiving presents, entertainment or money with customers,
suppliers and other business partners in order to acquire or maintain unjust interest or
wrongful preferential treatment.
4. Ensure to inform Hero MotoCorp’s management against any such practice (as defined
under above mentioned sub clauses 1-3) adopted by any of the company's employee.
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9. Anti-Competitive Behaviour
Respect fair competition and conduct every business activity in compliance with the
applicable antitrust legislation and provisions. Do not engage in illegal acts against the
competition laws and regulations of each country and region including private monopolies,
unreasonable restraint of trade (cartel, collusive bidding, etc.) or unfair trade practices.
10. Compliance with Sustainable Procurement Guidelines
In order to ensure and demonstrate compliance with the Hero MotoCorp’s Sustainable
Procurement Guidelines, you shall keep record of all relevant documentation, and provide
to us supporting documentation upon request. To verify your compliance, we reserve the
right to audit and inspect your operations and facilities, at our own cost and upon
reasonable notice, with or without support of a third party. If the results of such an audit or
inspection cause us to be of the opinion that you do not comply with this Hero MotoCorp’s
Sustainable Procurement Guidelines, you shall take necessary corrective actions in a timely
manner, as directed by us. If you fail to comply with this Hero MotoCorp’s Sustainable
Procurement Guidelines, then we may take action against you, including suspending or
terminating your activities as one of our suppliers.
11. Vigil Mechanism/Whistle-blower and Grievance Redressal
While the Hero MotoCorp’s Code of Conduct defines the expectations in terms of their
integrity and professional conduct, the vigil mechanism defines the mechanism for
reporting deviations from the standards defined in the code. The vigil mechanism is
implemented as a safeguard to unethical practices. This mechanism is intended to provide
mechanism for reporting genuine concerns or grievances and ensure that deviations from
the Company’s Business Conduct Manual and Values are dealt with in a fair and unbiased
manner as provided in Section 177 (9) and (10) of the Companies Act, 2013 and the
Companies Rules, 2014.
In the context of our business relationship, if you or your employees believe that the terms
of this Hero MotoCorp’s Sustainable Procurement Guidelines are not adhered to, or that
Hero MotoCorp is not acting in accordance with its own Hero MotoCorp’s Sustainable
Procurement Guidelines, then we encourage you to raise your concerns via below
mentioned reporting channels.
S.
Reporting Channel Contact Information Availability
No.
Phone (Toll Free
1 number) (airtime may 1800 200 4625 24 *7
be charged by some
mobile networks)
2 Email [email protected] 24 *7
3 Web http://www.heromotocorp-ethicshotline.com 24 *7
