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Understanding Material Aspects

Supply Chain Risk Assessment

In determining material issues of a stakeholder, a structured risk assessment exercise is very useful. Wipro's approach to identifying sustainability risks in the supply chain includes cross functional analysis of the risks pertaining to different organizational functions. The Enterprise Risk Management function owns the supplier economic risk assessment process and their focus is on ensuring continuous and non-interrupted supply of services/goods. Vendor Risk Assessment comprises a formal evaluation of a vendor company’s financial health which is determined by many factors including operational efficiency, susceptibility to corruption etc.

The Group Sustainability Function partners with Central Procurement Organization, Facilities Management Group and other relevant stakeholders in identifying environmental and social risks in Wipro's supply chain through independent studies conducted periodically. Wipro commissioned Fronesys and Trucost in 2012 to conduct a preliminary risk assessment study of environmental and social risks in its supply chain. These studies provided valuable insights for the initial risk mapping exercise and prioritizing areas of supplier engagement. Trucost quantifies the natural capital impacts of Wipro’s operations and its supply chain using primary activity data and accepted valuation methodologies. Fronesys undertook hot social spot assessments for Wipro and identified high risk suppliers for engagement in terms of social risk for Wipro.

The Ombuds process is also available for suppliers through a 24X7 hotline and on the internet. The concerns raised through the Ombudsprocess are another source of identification of risks in the supply chain.

Given below is the condensed outcome of risk assessments in our supply chain.

Bases on Trucost's 'Natural Capital Valuation' which studied Stakeholder Feedback

Feedback from our various stakeholders indicated the following issues as relevant to our supplychain.

Influencing Stakeholder Emerging Concerns
  • Global customers requesting information and assessing our supply chain
  • Business impact due to operations impact
  • Demand for comfortable and safe working environment
  • Investors requesting information on our supply chain program
  • Competency gaps in the IT Services people supply chain
  • Financial prudence
Society & Community
  • Externalities due to operations
  • Employment
  • Local sourcing
  • Diversity

Identified Material Aspects

The understanding of risks in supply chain and also our stakeholders concerns informed the outcomes of our materiality determination exercise. Based on the identified risks, we have identified the following aspects as material from a sustainability perspective.

We refer to our high proportion of contract staff - both, people involved in core delivery as well as skilled or unskilled support staff who work in campus operations as ‘people supply chain’. In this section, we will primarily address the secondary supply chain as the ‘people supply chain’ aspect has been covered in detail in ‘Workplace Sustainability’ section of our report. Pg no