WNS (Holdings) Limited
Climate Impact & Sustainability Data (2012-2016)
Reporting Period: 2012-2016
Environmental Metrics
Climate Goals & Targets
Environmental Challenges
- Unsustainable improvements in working capital efficiency in the retail sector from 2012-2016.
- Retailers' spending on dividend payments and repurchases exceeding net income three out of five times.
- Cash outflows for dividends and buybacks exceeding cash flow from operations after CapEx in over 40% of retailers.
- Flat sales growth (year-on-year) for the period between October 2015 and September 2016 due to deep discounting and competition from e-tailers.
- Increased debt to equity ratio from 49.8% in 2012 to 82.2% in 2016 for some retailers.
Mitigation Strategies
- Developing a prudent working capital management strategy across different sectors.
- Focusing on inventory and payables optimization.
- Implementing real-time visibility and analytics solutions.
- Remodeling payments and inventory policies.
- Implementing supplier segmentation to allocate payments.
- Assortment rationalization to optimize inventory efficiency.
- Utilizing various payment strategies such as extending net terms, early pay discounts, p-cards, and supply chain financing.
Supply Chain Management
Responsible Procurement
- Supplier market competitive intelligence
- Supplier consolidation
- Renegotiating payment terms
- Supply chain financing