For over three decades, Dilmah has been more than a tea company. It has been the custodian of a philosophy that its Founder, Merrill J. Fernando, described simply: “Business is a matter of human service.” That conviction has guided every decision, from how Dilmah grows its tea to how it engages with the people and communities that make its story possible. Today, that philosophy is once again at the heart of a new milestone, as Dilmah Ceylon Tea Company PLC has been invited to be Patron of the Supply Chain Working Group of the UN Global Compact Network Sri Lanka (Network Sri Lanka).

This invitation recognizes Dilmah’s leadership in reimagining supply chains – not just as pathways of commerce, but as ecosystems of fairness, transparency, and responsibility. It also spotlights the company’s commitment to ensuring that sustainability is embedded in every step of its journey, from the tea fields of Sri Lanka to consumers worldwide.

Building Ethical and Responsible Supply Chains

Dilmah’s supply chain is both local and global. In Sri Lanka, the company works with trusted partners to source tea, herbs, flavours, and packaging materials, while partnering with reputable international suppliers for specialized inputs and machinery. This blend ensures quality, compliance, and alignment with international standards. Significantly, 79 percent of Dilmah’s suppliers are based in Sri Lanka, reflecting its long-standing commitment to local communities. In 2024/25 alone, 71 percent of its total supplier spend – amounting to Rs. 14,494 million out of Rs. 20,440 million – was directed to local businesses, reinforcing its role as an anchor for the national economy.

Supply chain sustainability is not simply an operational goal for Dilmah; it is seen as essential to business continuity itself. With more than 85 percent of the company’s Scope 3 emissions situated within the upstream and downstream value chain, transforming supplier relationships into vehicles for climate action and ethical business is both a responsibility and a necessity.

Supplier Assessments and Accountability

To ensure this transformation, Dilmah has built robust systems for evaluating and engaging suppliers. The Supplier Capability Assessment Form forms the foundation of supplier selection, requiring compliance across a wide spectrum of criteria – business ethics (prohibiting bribery and corruption), labour standards, environmental requirements, food safety and quality assurance, and brand protection.

Suppliers are subject to biannual reviews against a marking scheme developed with input from key departments, while an annual Supplier Sustainability Self-Assessment is used to measure and rate performance. Where gaps are identified, suppliers are supported with extended timelines, mentoring, and follow-ups until they reach the required standards.

This approach reflects Dilmah’s belief that supply chains must be strengthened through collaboration rather than exclusion. As Rishan Sampath, Head of Sustainability and Conservation at Dilmah, explained: “Our approach to supply chains is the same as our approach to tea. It must be authentic, ethical, and respectful of the people and ecosystems that sustain it. A supply chain that is purely transactional cannot endure –  it must also be transformational.”

Stronger Together: Supplier Development

To embed sustainability across its supply network, Dilmah launched the Stronger Together initiative, a supplier sustainability roadmap designed to raise awareness and build capacity. This program supports suppliers in areas such as decarbonization, humanitarian action, and compliance with global sustainability requirements, while also providing targeted financial and technical assistance.

The initiative has unfolded in phases. In Phase 1, Dilmah convened a series of supplier conferences tailored to key supply chain segments. Sessions included a July 2023 engagement with packaging suppliers on sustainable packaging innovations, a December 2023 session with the tea sector on climate resilience and ethical labour practices, and a February 2025 forum with ingredient, logistics, and other partners to address global regulations and cross-cutting sustainability challenges.

Phase 2 – Stronger Together 2.0 builds on this foundation, focusing on implementation. It provides practical tools and training across ESG pillars, from carbon foot printing and waste management to human rights and anti-bribery practices. Training sessions also address compliance with emerging standards such as the new EU sustainability regulations. Suppliers are additionally supported with resources for decarbonization projects and humanitarian efforts, particularly in the tea sector. To foster transparency and peer learning, an online platform is being created where suppliers can interact and showcase their sustainability stories.

Recognition of Leadership

Dilmah’s commitment to sustainable supply chains has already earned international recognition. The company was named a finalist at the Reuters Global Sustainability Awards 2025 in the Net Zero: Supply Chain Decarbonization category, making it the only Sri Lankan brand recognized at this level. This acknowledgment reflects Dilmah’s ambitious, science-based climate commitments, validated by the Science Based Targets initiative (SBTi), and its leadership in driving supplier-level decarbonization.

Scaling Impact with Network Sri Lanka

While Dilmah’s internal programmes set a high standard, the company’s ability to influence wider change is magnified through its collaboration with Network Sri Lanka. The Supply Chain Working Group provides a platform for collaboration, shared learning, and collective action, enabling Dilmah to align with global frameworks while strengthening local practice.

“Through Network Sri Lanka, we are not just advancing our own practices – we are part of a larger movement,” said Rishan. “The Network connects us with peers across industries, fosters shared learning, and helps us benchmark against global frameworks. That context is invaluable in ensuring our efforts have both local relevance and international credibility.”

By serving as Patron, Dilmah is helping to catalyze progress on responsible sourcing, human rights due diligence, and decarbonization into supply chains. Its vision is not only to raise the bar within its own operations but also to inspire and enable others to do the same.

The Road Ahead

Looking ahead, Dilmah is committed to building resilient and regenerative supply chains – ones that support farmer livelihoods, strengthen smallholder climate adaptation, and ensure dignity and fairness for workers at every stage. Integrating renewable energy, reducing waste, and scaling decarbonization efforts across the supply network remain priorities.

At the heart of this journey is the same principle that has always guided Dilmah: business must exist to serve humanity. By embedding that belief into the fabric of its supply chain – and by working with Network Sri Lanka to translate global principles into local impact – Dilmah is helping build supply chains that are ethical, transparent, and resilient. Through its actions, the company continues to uphold the Ten Principles of the UN Global Compact – from advancing human rights and fair labour practices to protecting the environment and fostering integrity in all business dealings – ensuring a future where commerce and compassion move hand in hand.

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Dilmah invited to be Patron of UN Global Compact Network Sri Lanka’s Water & Ocean Stewardship Working Group

For Sri Lankans, Dilmah is more than a tea brand – it is heritage distilled in a cup, a name synonymous with authenticity, integrity, and the familiar aroma of home. Yet behind its global reputation lies something far more profound: a philosophy rooted in purpose, compassion, and stewardship. This ethos is anchored in the words of Dilmah Founder Merrill J. Fernando, who believed that “business is a matter of human service.” It is this guiding principle that continues to shape how Dilmah grows, innovates, and contributes to society – placing purpose above profit.

In recognition of this enduring commitment, Dilmah Ceylon Tea Company PLC has been invited to be Patron of the Water & Ocean Stewardship Working Group of the UN Global Compact Network Sri Lanka (Network Sri Lanka). This invitation is both an honor and a responsibility: an opportunity to amplify decades of leadership in conservation and inspire others to take action in Sri Lanka’s collective sustainability journey.

“Being named Patron amplifies the work that we are already doing,” said Rishan Sampath, Head of Sustainability and Conservation at Dilmah. “But more importantly, it gives us a platform to bring others with us – to build a national conversation, to share tools, and to invite new thinking.”

A Legacy in Water Stewardship

Water has always been at the heart of Dilmah’s philosophy. Reliable access to water sustains the tea industry, just as thriving ecosystems sustain communities. Recognizing this, Dilmah Conservation – the company’s environmental arm – has, since 2007, spearheaded over fifty initiatives to conserve, restore, and manage water resources. These include rainwater harvesting systems, community access to safe drinking water, wastewater recycling, and campaigns to reduce plastic pollution that threatens waterways.

In 2024/25, Dilmah took a significant step forward by conducting its first-ever water footprint assessment, aligned with ISO 14046:2014 and validated by a third party. The assessment, based on the methodology of the Water Footprint Network, represents a milestone in the company’s sustainability journey. By adopting internationally recognized standards, Dilmah has enhanced the credibility of its water data and reinforced its commitment to transparent, science-based environmental management.

The results of the assessment provided detailed insights into Dilmah’s water use. At Dilmah Ceylon Tea Company (DCTC), the total direct water footprint was recorded at 19,498 cubic metres per year, while its subsidiary MJF Beverages (MJFB) reported a total of 880 cubic metres per year. The breakdown highlighted direct blue water footprints of 11,851 cubic metres per year at DCTC and 527 cubic metres per year at MJFB, while the direct grey water footprint was 7,647 cubic metres per year and 353 cubic metres per year respectively. These figures provide a critical baseline to guide future water efficiency and conservation strategies.

Importantly, the assessment revealed a clear trend of improvement. In 2024/25, the volume of municipal water withdrawn and consumed fell by 8 percent year-on-year, decreasing from 39.15 million litres in 2023/24 to 35.93 million litres. Similarly, the volume of water discharged to wastewater treatment plants declined by 44 percent, falling from 41.11 million litres to 23.01 million litres. These reductions demonstrate Dilmah’s progress in reducing its water footprint and enhancing efficiency across operations.

From Waste to Resource: Water Conservation in Practice

Water conservation at Dilmah extends beyond monitoring and reporting. The company has integrated circular practices into its operations, ensuring that water is reused wherever possible. All effluents are routed to on-site wastewater treatment plants (WWTPs), which are designed to meet stringent environmental parameters, including pH levels, Chemical Oxygen Demand (COD), Biological Oxygen Demand (BOD), Total Suspended Solids (TSS), oil and grease, and heavy metals. Once treated, wastewater is repurposed for landscaping and gardening, reducing dependence on fresh water and minimizing waste.

Rainwater harvesting is another critical aspect of Dilmah’s conservation model. Systems installed at the company’s Headquarters in Colombo, the One Earth Centre in Moratuwa, and selected estates under Kahawatte Plantations PLC collectively offer a harvesting capacity of 129,799 cubic metres. By capturing and storing rainwater, Dilmah reduces reliance on municipal water supplies and ensures water security for operations and communities.

Looking ahead, Dilmah is scaling up its rainwater harvesting efforts even further. In December 2024, preliminary feasibility studies were conducted in collaboration with the Lanka Rainwater Harvesting Forum (LRWHF) at the Endane and Houpe estates. These studies lay the foundation for an expanded rainwater harvesting infrastructure across the Kahawatte Plantations footprint, demonstrating Dilmah’s proactive approach to long-term water stewardship.

“Without reliable sources, there is no tea. Without healthy ecosystems, there are no resilient communities. Water is everything,” Rishan emphasized.

Strengthening Through Network Sri Lanka

Dilmah’s progress has also been accelerated by its collaboration with Network Sri Lanka. Through the Network, Dilmah has been able to align its water stewardship practices with global frameworks, access international expertise, and share its learnings with peers across industries. The Working Group has provided a platform not only to showcase Dilmah’s pioneering efforts in water footprint assessment and conservation, but also to engage other businesses in advancing shared solutions. By convening companies from diverse sectors, Network Sri Lanka ensures that individual initiatives like Dilmah’s contribute to system-wide change and strengthen Sri Lanka’s collective response to water and ocean challenges.

“Our collaboration with the Network Sri Lanka has helped us go forward, faster,” added Rishan. “Through the Network, we have been able to benchmark our progress against international best practices, access expertise on emerging issues, and, most importantly, work alongside other Sri Lankan businesses who share our commitment to water and ocean stewardship. That collective approach makes our efforts stronger and more impactful.”

Expanding to Ocean Conservation

While water has always been part of Dilmah’s DNA, the company has more recently extended its stewardship to Sri Lanka’s oceans and coastal ecosystems. On World Oceans Day, 8 June 2024, Dilmah partnered with the University of Colombo and UvaWellassa University to launch Phase I of a coral conservation project at Colombo Port City. This initiative builds on Dilmah’s earlier efforts to protect the Kayankerni Marine Reef and focuses on studying coral diversity in an urban setting. Using baseline surveys, mapping, data collection, and impact assessments supported by innovative technologies, the project aims to generate critical insights into the resilience of corals in rapidly developing coastal environments.

At the same time, Dilmah Conservation has embarked on one of Sri Lanka’s most ambitious mangrove restoration programmes. In Kalpitiya’sKappalAdi Lagoon, Dilmah is restoring twenty-five acres of degraded mangrove forest. This project is underpinned by a dedicated mangrove nursery cultivating seven species of saplings. Since its launch in October 2022, the initiative has reported an above-average planting success rate, owing to the use of science-based planting techniques. A comprehensive baseline survey of the site documented 144 wildlife species and 62 native plant species, creating a robust scientific foundation to guide ongoing restoration work.

Collaboration remains a cornerstone of Dilmah’s approach. Through Biodiversity Sri Lanka (BSL), the company is jointly restoring mangrove patches in the Anawilundawa Wetland Sanctuary, a Ramsar recognized site of international importance. These projects complement ongoing coral reef conservation under the initiative Life to our Coral Reefs.

“Our responsibility extends from the cloud forests of our estates to the coral reefs on our coasts,” Rishan noted, highlighting the interconnectedness of land and marine ecosystems.

The Road Ahead

As Dilmah looks to the future, its ambitions in water and ocean stewardship are growing. Plans are underway for the accurate mapping of Sri Lanka’s fringing coral reefs using high-resolution drone imagery and for the evaluation of ecological and benthic characteristics to guide national policy. The company is also exploring the potential of blue carbon ecosystems – mangroves, seagrasses, and salt marshes – to act as carbon sinks while supporting eco-tourism and enhancing climate resilience. At the same time, expanding rainwater harvesting infrastructure across its plantation footprint remains a priority to safeguard freshwater resources in the face of climate variability.

By marrying decades of water stewardship with bold new commitments to marine conservation, and through Dilmah’s longstanding participation with Network Sri Lanka to translate global principles into local impact, the company is helping build a future where people, ecosystems, and businesses can thrive together. In doing so, Dilmah continues to advance the Ten Principles of the UN Global Compact – safeguarding human and environmental well-being, promoting responsible labour and ethical business conduct, and contributing to a resilient, sustainable Sri Lanka.

For further information, please contact:
Rathika de Silva
Executive Director
UN Global Compact Network Sri Lanka
support@ungcsl.com

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