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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UN Global Compact Network Sri Lanka is proud to introduce a transformative Patron structure for its Working Groups, set to take effect in 2025. This initiative strengthens the Network’s commitment to advancing corporate sustainability by amplifying the leadership of select companies within their respective issue areas. The Memoranda of Understanding (MoUs) were signed on 20th March 2025, at the 80 Club, in the presence of the Network’s Board Members.

A Collaborative Model for Greater Impact

Network Sri Lanka’s Working Groups have long provided a platform for businesses to exchange knowledge and drive industry-wide progress on sustainability. With this new structure, leading companies will take on an enhanced role in guiding participants within their Working Groups, offering mentorship, strategic insights, and best practices to drive collective action.

As Patrons, these companies will host events, provide guidance, and shape the direction of their respective Working Groups, ensuring that discussions translate into tangible, scalable solutions aligned with national and global sustainability priorities.

Meet the Patrons and Their Areas of Leadership

• MAS Holdings (Pvt) Ltd – Gender & Diversity
  MAS Holdings will lead the Gender & Diversity Working Group, championing inclusive business practices, gender equality, and women’s leadership in corporate Sri Lanka.
• A. Baur & Co (Pvt) Ltd – Business & Human Rights
  A. Baur & Co will lead efforts within the Business & Human Rights Working Group, championing ethical business practices, human rights protections, and responsible corporate conduct.
• Talawakelle Tea Estates PLC – Climate Emergency Task Force
  Talawakelle Tea Estates will drive action within the Climate Emergency Task Force, supporting businesses in climate change mitigation, adaptation and resiliencestrategies.
• Kelani Valley Plantations PLC – Water & Ocean Stewardship
  Kelani Valley Plantations will support the Water & Ocean Stewardship Working Group, focusing on sustainable water management and conservation practices.
• Dilmah Ceylon Tea Company PLC – Water & Ocean Stewardship & Sustainable Supply Chain& SME
  Dilmah will take on a dual Patron role, sharing its expertise in sustainable supply chains and water stewardship, particularly in global supply chain sustainability and marine biodiversity conservation efforts.
• Teejay Lanka PLC – Sustainable Supply Chain& SME
  Teejay Lanka will support the Sustainable Supply Chain Working Group, bringing its expertise in ethical sourcing, circularity, and sustainable manufacturing.

Driving Systemic Change Together

Through this initiative, Network Sri Lanka aims to accelerate the transition from awareness-building to impactful action. By formalizing the role of Patrons, the Network strengthens its commitment to supporting businesses in achieving measurable progress on sustainability, in alignment with national priorities and the Sustainable Development Goals (SDGs).

Quotes

MAS Holdings, a longstanding advocate for gender equity and women’s empowerment, continues its leadership role as the Patron of the Gender & Diversity Working Group.

“As the Patron of the Gender & Diversity Working Group, MAS Holdings builds on over two decades of commitment to gender equity and women’s empowerment. Our engagement with Network Sri Lanka and similar networks has reinforced the value of collaboration there’s much to learn and share. We can’t drive systemic change alone, and through this role, we hope to inspire greater private sector involvement, exchange insights, and strengthen the ecosystem for gender equity in Sri Lanka.” – Thanuja Jayawardene, Head of Gender Equity, MAS Holdings

“As a steward of A. Baur & Co. (Pvt.) Ltd.’s 127-year legacy, built on ethical governance and the unwavering dedication of our people. Ensuring a living wage is not just a moral imperative, it’s also a smart business strategy. When the employees have the financial security they need, they’re more productive, engaged, and loyal. We recognize that this transformative change cannot be achieved in isolation.  By working together with other stakeholders, we can create a ripple effect that benefits everyone. Through our commitment to advocating for a living wage, we aim to inspire broader private sector participation, facilitate the exchange of best practices, and strengthen the ecosystem for equitable economic growth in Sri Lanka.” – Rolf Blaser, Managing Director / CEO, A. Baur & Co. (Pvt.) Ltd.

Hayleys Plantations Sector has been at the forefront of corporate sustainability in Sri Lanka, setting benchmarks in water conservation and climate action.

“Kelani Valley Plantations PLC was the first Sri Lankan company to sign the CEO Water Mandate in 2008, reaffirming our dedication to water conservation and sustainable resource management. Talawakelle Tea Estates PLC became the first Sri Lankan plantation company and the first organization in the country to commit to Science Based Targets in 2019, with our targets officially validated in 2021. These pioneering steps reflect our shared vision for a resilient, responsible, and forward-looking corporate sector. As Patron members of the Water & Ocean Stewardship Working Group (KVPL) and the Climate Emergency Task Force (TTE PLC), we remain committed to advancing collective action. We will continue to foster cross-industry collaboration, share best practices, and lead by example in promoting sustainable development across Sri Lanka.” – Dr. Roshan Rajadurai, Managing Director, Hayleys Plantations Sector

Dilmah Ceylon Tea Company PLC highlights the urgency of sustainable supply chains and water conservation as a Patron of the Sustainable Supply Chain& SME and Water & Ocean Stewardship Working Groups.

“As Patrons for the Sustainable Supply Chain and Water & Ocean Stewardship Working Groups, we recognize the urgent need of improving sustainable supply chains to minimize environmental impact and ensure long-term resilience, while water and ocean stewardship are critical to protecting vital resources and biodiversity. Addressing these issues now is crucial for securing a sustainable future and meeting the increasing demands of stakeholders and consumers.” U.W. Rishan Sampath, Head of Conservation and Sustainability, Dilmah Ceylon Tea Company PLC

Teejay Group reaffirms its commitment to circular economy principles within the Sustainable Supply Chain& SME Working Group, emphasizing innovation and collaboration.

“As a proud Patron for Circular Economy under the Sustainable Supply Chain Working Group, we are committed to driving sustainable innovation and industry-wide collaboration. Together, we can advance resilient supply chains, close the loop on resources, and build a future where circularity fuels progress. Let’s pioneer scalable solutions aligned with global best practices because sustainability isn’t just our responsibility; it’s the foundation of a lasting legacy.” – Ishara Perera, Manager Group Sustainability, Teejay Group

About UN Global Compact Network Sri Lanka

Network Sri Lanka is the Country Network of the UN Global Compact, mobilizing businesses to integrate sustainability into their core strategies. Through its Working Groups, the Network facilitates peer learning, collaboration, and collective action to drive meaningful change across industries.

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