Sustainable supply chain: Balancing efficiency and environmental responsibility Overview The Adani Portfolio proactively minimises risks by attracting, examining and selecting partners across the value chain. It aims to create agile, resilient, sustainable and profitable supply chains, integrated into operational and supply chain management processes. The Group collaborates with suppliers to uphold stringent ESG standards and promote transparently ethical practices. Sustainability extends beyond compliance, making a positive impact on communities and ecosystems. During onboarding, all suppliers are screened for ESG and other parameters through the ARIBA portal. Supplier code of conduct The Adani Portfolio’s supplier Code of Conduct comprises material suppliers, service providers, vendors, traders, agents and consultants, employees, agents, company representatives, subsidiaries and associated entities. The Group expects suppliers, employees and representatives to adhere to lawful and fair business practices, embodying a commitment to internationally recognised standards (United Nations Global Compact, International Labour Organisation, United Nations Universal Declaration of Human Rights and prevalent industry standards for vendors and suppliers). Strategy and management The Adani Portfolio believes that sustainable procurement is achieved through the right attitude, skills and knowledge. It maintains a strong relationship with stakeholders through mutual trust, respect and benefits, a robust foundation that shields it against unfavorable business or economic cycles. The Group’s value chain sustainability is ensured by suppliers with consistently high standards. The Group bases its decision making around the performance, sourcing capability and awarding contracts. The Group is committed to local economic development through increased local engagements. Adani Wilmar: Digitisation and streamlined processes The Company embraced digitisation, streamlining processes to achieve operational excellence within its supply chain through SAP integration, resulting in a comprehensive end-to-end process on a unified platform. The Company coordinates with suppliers to moderate risks. It is committed to uphold ESG and HR policies and deepen its commitment to ISO: 14001 and ISO: 45001 certifications. Through an ESG-driven approach, the Company engaged in responsible sourcing, contributing to the transformation of supply chains on a global scale and inspired other companies to adopt similar practices. Adani Ports articulated objectives in alignment with key performance indicators (KPIs) that were identified for supplier networks. Supplier ESG programme Adani Portfolio’s businesses comprise a techno-commercial team responsible for procurement, contracts and vendor management. The supplier Code of Conduct is inviolable and the following measures pertain to supplier ESG programmes. Continuous review of purchasing practices Preference for suppliers with superior ESG performance Minimum ESG requirements and exclusion of non- compliant suppliers Training for buyers and international stakeholders KPIs Target 1. Quality Management. Environment and Safety Certification Achieve 100% coverage by 2025 2. Environment policy. Climate Action Plan and Water Management Policy Achieve 100% coverage by 2025 3. Continuously monitor and improve suppliers’ ESG performance Have a system in place by 2025 4. Sustainability based vendor ranking/ scoring system and its use in the procurement decision making Fully implement by 2025 Four levers ESG Report 2022-23 157 156 Adani Group