What does BRSR ask about buying from suppliers from marginalised groups?

Question

Accepted Answer

Principle 8 leadership indicator 3 asks three things: whether the company has a preferential procurement policy favouring suppliers from marginalised or vulnerable groups, which groups it buys from, and what percentage of total procurement by value that is. A policy with no spend figure answers only the first part. Do you have a preferential procurement policy giving preference to suppliers comprising marginalised or vulnerable groups? Yes or no. From which marginalised or vulnerable groups do you procure? What percentage of total procurement, by value, does it make up? SEBI's guidance note describes vulnerable and marginalised groups as people unable to realise their rights or enjoy opportunities because of physical, mental, social, economic, cultural, political, geographic or health circumstances. In India it lists, among others: women, girls and transgender persons; children and the elderly; scheduled castes, scheduled tribes and other groups by caste, religion or ethnicity; displaced people, landless and small or marginal farmers, and migrant workers; and persons with disability. Take total procurement by value for the year from the purchase ledger. Tag suppliers owned or run by these groups, with proof such as a supplier declaration backed by a caste or disability certificate, or farmer producer company records. Count each supplier once, even if it fits two groups. Divide tagged spend by total spend. Essential indicator 4 of the same principle asks for inputs sourced from MSMEs and small producers. A supplier can appear in both, but being an MSME does not by itself make a supplier part of a vulnerable group.

What does BRSR ask about buying from suppliers from marginalised groups?

The three parts

Who counts

Working out the percentage

Keep it apart from MSME sourcing

One year's figure, an example

What Senseible does here