California Transparency Statement

california transparency 20170330

Disclosure in Compliance with California Transparency in Supply Chains Act of 2010 (SB 657)

The Tata Group’s philosophy of management has always been, and is today more than ever, that corporate enterprises must be managed not merely in the interests of their owners, but equally in those of their employees, of the consumers of their products, of the local community and finally of the countries in which the Tata Group companies do business.¹

The California Transparency in Supply Chains Act of 2010 (SB 657) (the “Act”) requires large retailers and manufacturers doing business in California to disclose their efforts to eradicate slavery and human trafficking from their direct supply chains for tangible goods offered for sale.

Tata Consumer Products is committed to sustainable beverage production and consumption. The tata code of conduct (“TCoC”) guides us in how we purchase raw materials for our manufacturing units. Our natural beverages policy and sustainable sourcing strategy are focused on sustainable agricultural practices providing guidelines to suppliers on sustainable sourcing. Our Natural Beverages Policy also sets minimum requirements for food safety, social and working conditions, occupational health & safety and environmental demands, and agricultural practices at suppliers.

Tata Consumer Products’ sustainable sourcing strategy has been established in order to make Tata Consumer Products' position clear to suppliers and their colleagues, as well as any other parties involved in our supply chain. It is based on the eight core conventions defined in the ilo declaration on fundamental principles and rights at work (June 1998 and the rio declaration on environment and development 1992. Further, Tata Consumer Products recognizes the fundamental principles of human rights as described in the united nations universal declaration of human rights (1948) and the TCoC. Tata Consumer Products has also adopted a long‐term sustainability strategy that its beverage business shall have an overall positive impact on people and the environment.

In regard to the Act, Tata Consumer Products which has a zero tolerance policy regarding slavery and trafficking in the Company’s supply chain performs a preliminary risk assessment of suppliers of its beverage products to determine the level of risk associated with slavery and human trafficking in their supply chains. In addition, Tata Consumer Products selectively brands products with the rain forest allianceethical tea partnershiputz certified and trustea marks that have been audited by third parties for compliance with sustainable agricultural standards regarding wages and working conditions, ecosystem, soil, water & waste, occupational health & safety, traceability and other sustainable agricultural requirements.

In compliance with the Act, Tata Consumer Products ensures extensive third-party audits of all beverage product suppliers that include food safety, environmental and social responsibility. Tata Consumer Products requires high risk suppliers of beverage products to provide Tata Consumer Products with independent third party audits specific to social accountability, including slavery and human trafficking.

Tata Consumer Products is committed to providing safe and best quality beverages to its consumers that will enhance their satisfaction. Tata Consumer Products intends that all the tea that it buys for the Tetley® brand sold in United States of America shall be 100% sustainably sourced by 2016. Tata Consumer Products is in the process of setting up setting up similar target for its coffee brand sold in United States of America. We accept independent third party certifications of sustainable agricultural practices such as Ethical Tea Partnership, Rain Forest Alliance, UTZ and Trustea from tea and coffee producers as evidence that the products they supply to Tata Consumer Products are sustainably sourced.

Tata Consumer Products is committed to the TCoC, which represents the values and core principles that guide the conduct of every Tata business. Tata Consumer Products is committed to ethical and socially responsible conduct in the workplace.  The TCOC states that, “We shall respect the human rights and dignity of all our stakeholders.” The TCoC further states that, “We do not employ children at our workplaces. We do not use forced labor in any form.”

At the commencement of employment, all Tata Consumer Products employees are required to acknowledge that they have received and read the TCoC and certify that they will comply with the provisions at all times during their employment.  On a semiannual basis, Tata Consumer Products requires that employees in a management position recertify their compliance with the TCoC and that they are not aware of any noncompliance.  All Tata Consumer Products employees are required to recertify compliance with the TCoC as amendments are periodically made to it by management.  Violations of the TCoC by employees may result in disciplinary action up to discharge. Violations by contractors may result in their dismissal.

Tata Consumer Products training program educates its team members responsible for buying, blending and supply chain management about the principles underlining its standards relating to social issues including slavery and human trafficking, and provides education on how to identify and respond to supply chain issues, such as slavery and human trafficking.

As part of the Tata Group’s commitment to good corporate citizenship and actively assisting in the improvement of the quality of life of the people in the communities in which we operate Tata Consumer Products: (i) partners with the United Nations Children Emergency Fund (UNICEF) and the Ethical Tea Partnership to promote child rights and child protection in its supply chain and (ii) on an ongoing basis reviews and when necessary amends its programs and policies to address the subject matter of the Act.

To learn more about Tata Consumer Products responsible business practices, please visit http://www.tataglobalbeverages.com/sustainability which details our various social sustainability initiatives.  It is Tata Consumer Products’ intent to inform its customers and other interested consumers of our initiatives to ensure that our supply chain is free of forced or trafficked labor.

¹J.R.D. Tata – Chairman, Tata Sons (1938-1991)