ReNew assessed 100% of critical suppliers to strengthen Scope 3 risk management
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1. Company at a Glance
In this case study, we will discover how ReNew, a leading clean energy company translated its Net Zero ambition into supplier-level action by assessing 100 per cent of its critical suppliers, embedding traceability requirements into procurement contracts and using supplier-specific improvement plans to strengthen Scope 3 management and supply chain resilience.
Electric Utilities & Independent Power Producer
Industry
2011
Founded
Gurugram, India
Headquarters
4,579
Number of Employees
2. The Challenge
Turning Scope 3 ambition into supplier-level action
ReNew had set a target to reach net zero by 2040, but its emissions profile showed that supplier engagement would be essential. In FY 2024-25, Scope 3 emissions represented more than 95 percent of ReNew’s cumulative emissions and were more than 100 times higher than its Scope 1 and 2 emissions combined. This meant that ReNew could not rely only on decarbonizing its own operations. It needed to work across its value chain to understand supplier risks, improve traceability, embed sustainability into procurement decisions and support suppliers in shifting towards lower-carbon practices.
In addition, supply chain and trade disruptions during COVID-19 highlighted the need for more effective collaboration with suppliers. What began as a risk-management response evolved into a broader opportunity to build a more resilient, sustainable and competitive supply chain.
3. The Action
Embedding ESG risk management for Scope 3 decarbonisation and building business resilience
INTEGRATING SUPPLY CHAIN SUSTAINABILITY WITH BUSINESS GOVERNANCE
ReNew first positioned sustainable supply chain management as a business priority, not only as an ESG objective. The company identified Scope 3 and supplier engagement as a priority for three reasons: its dependence on more than 3,000 value chain partners across India and other markets; its SBTi-validated Net Zero target, which required action across the value chain representing more than 95 percent of its cumulative emissions in FY2024–25; and the results of its 2024 double materiality assessment, where sustainable supply chain emerged as one of the company’s top material issues with high financial impact.
To translate this priority into implementation, ReNew embedded Scope 3 assessment and green procurement targets into leadership and management scorecards. These targets were then translated into team-level responsibilities for ESG, supply chain, procurement and asset management teams. This helped clarify ownership across the organization: ESG teams supported the framework and methodology, procurement and supply chain teams integrated requirements into supplier processes, and asset management teams helped apply the approach in relevant sourcing and operational decisions.
EMBEDDING POLICY FRAMEWORK FOR ROBUST SUPPLY CHAIN GOVERNANCE
To make expectations clear from the start, ReNew implemented a Supplier Code of Conduct aligned with the UN Global Compact Ten Principles and ISO sustainability standards. The code applies across all contracts and covers issues such as forced labour, human rights, environmental management and responsible business conduct.
For suppliers already in place before the refreshed Supplier Code of Conduct was introduced, ReNew sought voluntary compliance. Existing suppliers were informed of the updated expectations and asked to agree to comply with the refreshed version, helping the company apply the same baseline standards across both new and existing supplier relationships.
ReNew also sought to extend its ESG expectations beyond direct suppliers. Its Supplier Code of Conduct encourages its suppliers to incorporate these criteria into their own supply chains and engage with sub- suppliers to identify and mitigate ESG risks across the value chain. This was important because many Scope 3 and human rights risks sit deeper in the value chain, not only with the first-tier supplier. As a result, we have enhanced transparency across the value chain. For instance, for FY 2024-25, there were zero incidents of human rights violations reported.
ADD TRACEABILITY REQUIREMENTS FOR THE SOLAR PV VALUE CHAIN
As ReNew expanded into solar module manufacturing, the company identified traceability as a priority, particularly because of human rights risks in the solar PV value chain. To manage this, ReNew developed and implemented a Traceability and Supply Chain Due Diligence Framework to mitigate risks in solar PV sourcing. The company embedded traceability clauses into procurement contracts through a Traceability Addendum and required regular supplier declarations confirming compliance with human rights and labour standards. The company also required suppliers to comply with national and international labour standards, including the core conventions of the International Labour Organization.
Progress to date | Consolidated update for FY 2025-26
Total Procurement for FY 26 (MW)
Module 110.00 | Cell 3599.42 | Wafer 1527.92 | Cumulative 5237.34
Traceability achieved (MW)
Module 110.00 | Cell 3501.50 | Wafer 1527.92 | Cumulative 5138.92
Traceability (in %)
Module 100.00% | Cell 97.28% | Wafer 100.00% | Cumulative 98.12%
NOTE
- As per ReNew’s procurement policy, FY 2025–26 is a transition year for solar PV traceability.
- Complete traceability up to polysilicon level must be ensured for at least 50 per cent of procurement volume, while the remaining volume follows the FY 2024–25 traceability norms.
- From FY 2026–27 onwards, complete traceability up to polysilicon level will be required for all relevant solar PV procurement.
ASSESS CRITICAL SUPPLIERS USING ESG RISK CRITERIA
Beyond the solar PV traceability work, ReNew also assessed ESG risks across its broader base of critical suppliers. The company partnered with external supply chain experts to conduct a comprehensive ESG risk assessment of 100 per cent of its critical suppliers for two consecutive years.
Critical suppliers were selected using a mix of business and sustainability criteria, including procurement spend, GHG emissions and business criticality. Together, the suppliers assessed represented 91 per cent of ReNew’s Scope 3 emissions and 73 per cent of its cumulative value spend both in FY 2024-25.
The assessment was conducted through a structured process combining desk assessments and interviews, supplemented by documents, reports and certifications provided by suppliers. It reviewed supplier readiness, risks and practices across more than 100 parameters aligned with global frameworks.
The assessment classified suppliers by ESG maturity and risk level. Among critical suppliers, 73 per cent were categorized as advanced maturity and low risk, 27 per cent as intermediate maturity and medium risk, and none as high risk. The assessment also helped ReNew identify specific gaps, including governance, climate disclosure and sustainability reporting.
TURN ASSESSMENT RESULTS INTO SUPPLIER-SPECIFIC ACTION PLANS
ReNew did not use the ESG assessment only as an assessment but to build stronger value chains. Based on the findings, the company developed tailored Corrective Action Plans for each of its critical suppliers.
These plans included short, medium and long-term targets. ReNew trained supply chain and procurement team focal points to monitor supplier progress, track deviations and follow up on a quarterly basis. This created a practical feedback loop between assessment, supplier engagement and improvement.
USE ESG PERFORMANCE IN SUPPLIER ONBOARDING
After applying the assessment approach within its existing supplier base, ReNew began using ESG as a screening filter for onboarding new suppliers. This allowed the company to identify potential risks earlier in the procurement cycle and prioritize suppliers with stronger ESG practices. From FY 2025–26 onward, ReNew has implemented compulsory ESG screening as part of the onboarding process for 100 percent of its Tier 1 suppliers.
This shifted the process from a reactive, remediation-based approach to a proactive, mitigation-based approach, helping procurement teams consider sustainability before supplier relationships were fully established.
STRENGTHENING PARTNERSHIPS FOR CROSS-SECTORAL IMPACT
ReNew complemented supplier assessment with capacity-building activities. In FY2025–26, the company launched its first ESG Impact Awards, a supplier recognition and convening platform designed to go beyond awards and build momentum around cross-sector collaboration. The platform focused on material topics.
The first edition brought together value chain representatives from India, China and Vietnam, including suppliers from hard-to-abate sectors such as cement and steel. Around 30 per cent of participants represented C-suite leadership. The convening included peer learning sessions, targeted masterclasses and networking opportunities, helping suppliers learn from each other and understand how ESG expectations connect to business competitiveness.
To strengthen credibility and transparency, suppliers recognized through the platform were assessed by third- party supply chain experts across six award categories. ReNew also engaged with the UN Global Compact’s SPARK initiative to support micro, small and medium-sized enterprises and smaller suppliers in building sustainability knowledge, including on greenhouse gas management, human rights and labour rights.
LINK THE SUPPLIER PROGRAMME TO FUTURE LOW-CARBON PROCUREMENT
ReNew used the supplier assessment and traceability work to support its next phase of Scope 3 action. For instance, as a signatory to the First Movers Coalition commitment for steel purchasers, ReNew has committed to ensuring that at least 10 percent, by volume, of the steel it purchases annually will be near- zero-emissions steel by 2030. It also plans to increase the rigor of supplier ESG risk assessments and introduce site-based audits as a next step.
4. Overcoming Barriers
Managing a geographically dispersed supply chain
ReNew’s value chain extended across India, China and Viet Nam, which made it difficult to collect consistent information from suppliers. To address this, the company worked with translators and different supplier teams to understand local practices, policies and documentation across organizations.
Balancing cost with low-carbon procurement
Some lower-carbon alternatives, such as green steel, created financial pressure because ReNew had to balance its Scope 3 commitments with procurement costs and business margins. The company addressed this by embedding green procurement into its broader business strategy and by setting longer-term procurement targets, rather than treating sustainable sourcing as a one-off purchasing decision.
Bringing smaller suppliers into the transition
ReNew identified MSMEs and smaller suppliers as one of the biggest implementation challenges, because many lacked the internal capacity or technical knowledge to respond to ESG expectations. To support them, ReNew began working with the UN Global Compact’s SPARK initiative to help suppliers build sustainability capabilities and become more competitive in global value chains.
5. Impacts & Results
100 per cent of critical suppliers assessed for two consecutive years.
91 per cent of Scope 3 emissions covered through supplier assessment in FY2024–25.
73 per cent of critical suppliers were classified as low risk, with no high- risk suppliers identified. 27 percent had intermediate ESG maturity and medium risk. No critical suppliers were classified as high risk.
The assessment helped ReNew identify supplier maturity gaps and climate- related opportunities, including that 23 per cent of assessed suppliers had set Net Zero targets and 10 per cent had set water-positive targets.
As of FY 2025-26, ReNew has achieved 98.12% traceability across the solar PV value chain with 100% traceability achieved for modules and wafers.
ESG screening integrated into new supplier onboarding for 100% Tier A suppliers.
Zero human rights incidents reported in FY 2024-25.
Supplier gaps translated into tailored improvement plans, which were discussed and agreed with suppliers and are monitored on a quarterly basis.
6. Key Lessons Learned
Move from separate workstreams to an integrated operating model
ReNew learned that Scope 3 progress required procurement, sustainability, supply chain and capacity-building teams to work together, not in sequence. By connecting these workstreams through a shared roadmap, with clear responsibilities and timelines, the company was able to accelerate implementation and use resources more efficiently.
Embed supplier sustainability into performance management
Companies should translate supply chain sustainability priorities into leadership and team-level targets.
Invest in supplier capacity, especially for MSME suppliers
Scope 3 progress depends on whether suppliers can understand and act on expectations.
"At ReNew, value chain engagement and stewardship are at the heart of our decarbonisation journey. By translating strategy into clear, time-bound targets, we are moving from a shared vision to action, accelerating Scope 3 decarbonisation across the value chain.”
Vaishali Nigam Sinha, Co-founder ReNew and Chairperson, Sustainability
7. Company Commitment
ReNew has been a committed participant in several UN Global Compact initiatives:
Founding Member of the UNGC Coalition for Sustainable Procurement
Participating corporation of the Spark programme
Climate Ambition Accelerator
Women’s Empowerment Principles (WEPs)
Founding member, First Movers Coalition
8. Recommended Resources
Recommended UN Global Compact Resources
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Disclaimer: This case example is intended strictly for learning purposes and does not constitute an endorsement of the individual companies by the UN Global Compact.