SL Tea Supply Chain Undergoes Transformation under Private sector Initiative

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By: Staff Writer

March 02, Colombo (LNW): The tea industry, a cornerstone of Sri Lanka’s economy, faces growing challenges in sustainability, climate change, and evolving global regulations.

As one of the most renowned Sri Lankan tea brands, Dilmah has consistently contributed to the industry’s advancement through ethical sourcing, environmental responsibility, and community empowerment.

The company’s latest initiative, ‘Stronger Together,’ is a testament to its commitment to driving positive transformation across the entire tea supply chain, ensuring long-term sustainability and shared progress.

Launched in 2023, Dilmah’s Stronger Together initiative fosters collaboration across the tea sector, bringing together various stakeholders to align with global sustainability benchmarks.

The program, spearheaded by Dilmah and its parent company, MJF Group, focuses on enhancing industry standards and promoting knowledge-sharing among suppliers, logistics providers, and allied services.

 By facilitating strategic partnerships, the initiative aims to equip the tea industry with the necessary tools to embrace sustainable practices collectively.

On February 27, Dilmah hosted its latest Stronger Together session at its headquarters, assembling over 100 stakeholders from key sectors, including shipping, packaging, IT, HR, and other allied industries.

 Experts from renowned organizations such as KPMG and DHL shared insights on supply chain sustainability, providing valuable guidance on adopting greener practices.

The session took place shortly after the European Commission’s ‘Omnibus Simplification Package’ announcement, which seeks to ease sustainability reporting requirements while upholding the EU’s overarching environmental objectives.

A crucial aspect of Dilmah’s sustainability vision is its commitment to achieving net-zero emissions.

The company, along with its subsidiaries, has aligned with the Science Based Targets initiative, emphasizing the importance of reducing supply chain emissions, which account for 80% of its total carbon footprint.

 By addressing sustainability challenges within its supply chain, Dilmah aims to enhance environmental accountability and future-proof its operations against evolving regulatory demands.

Dilmah Ceylon Tea Company Chairman and CEO, Dilhan C. Fernando, underscored the significance of sustainability, stating, “I

t is sustainability that is the strength and resilience of our organization and industry, and it is sustainability that will deliver the competitive edge for all of us.” Further reinforcing this vision, Global Strategic Corporate Sustainability Chairman and CEO, and Dilmah’s Non-Executive, Independent Director, Dr. Ravi Fernando, presented insights on global sustainability trends and the European Green Deal’s potential impact on Sri Lankan exporters.

The event also introduced Dilmah’s Supplier Partner Code of Conduct, which outlines seven key principles ensuring ethical and environmentally responsible practices throughout the supply chain.

Additionally, an online self-assessment tool is being developed to help suppliers identify compliance gaps and measure their emissions, fostering a more transparent and accountable approach to sustainability.

As global demand for sustainable products rises, education and awareness within the industry become increasingly vital.

Climate change vulnerability, stringent sustainability regulations, and evolving consumer preferences necessitate proactive measures to maintain Sri Lanka’s leadership in the global tea market; By prioritizing sustainability,

Dilmah not only strengthens its brand but also ensures the long-term viability of the tea industry, benefiting workers, communities, and the environment alike.

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