Responsible Supply Chain Promote Global Best Practices within Our Supply Chain
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Our well-received annual Supplier Days are a critical engagement driver with key suppliers.
Beautiful analytics to grow smarter
We aim to continuously improve the sustainability performance of our supply chain. This includes labor practices, human rights, supply chain transparency, and reducing environmental impact.
Our ESG focus encompasses the entire supply chain. This includes our Company as a supplier to our customers, as well as the many companies that are our suppliers.
For the past several years, we have received Gold or Silver medal ratings from EcoVadis. Our consistently high rating is an important recognition of our sustainability efforts as a supplier.
GreenMT Goal
Leverage Responsible Sourcing Framework
Targets and KPIs
Engage with key suppliers to enhance their sustainability performance
Perform risk-based due diligence and implement mitigating actions with respect to key suppliers
As our Company works with thousands of suppliers globally, we recognize that this scope represents a unique avenue where we can make a significant impact. Our Responsible Sourcing Framework enables us to positively influence the sustainability efforts of our suppliers.
This framework integrates both social and environmental considerations into our sourcing decisions and supplier management processes. The Responsible Sourcing Framework builds on our Business Partner Code of Conduct and guides risk-based actions throughout our relationship with our suppliers. These actions include risk assessments, audits and remediation, and regular engagement including our annual Supplier Days.
ESG Expectations Communicated to Our Suppliers in 2022 and 2023
We expanded our Sedex membership to access granular and site-specific supplier data for our risk assessments. Sedex tools and services will enable us to work with our suppliers to ensure that they are upholding safe, ethical, and sustainable business practices, helping us to protect the working conditions for people working in our supply chain.
We engaged with nearly 450 suppliers, representing approximately 65 percent of our global direct spend, to prioritize sustainability initiatives. We targeted key suppliers for engagement based on strategic relevance, human rights and environmental risks, and contribution to our Scope 3 emissions.
We audited 101 suppliers, covering 12 percent of our strategic spend, with no significant corrective actions required from them.
We held Supplier Days across Europe, China, and North America in 2024, with more than 220 participants representing more than 100 suppliers. At these Supplier Days, we communicated to our suppliers the increasing importance of ESG priorities in our purchasing decisions. As in previous years, the 2024 Supplier Days included recognizing suppliers for making significant contributions to our sustainability goals with sustainability awards. The suppliers participated in a well-received hands-on workshop exploring the need for greater supply chain transparency and due diligence to mitigate supply chain risks and drive compliance.
Our supply chain supplier base is globally diversified and complex, represented by approximately 3,400 direct materials suppliers. Most of these suppliers are located close to our major production facilities. Among our suppliers, we partner most closely with strategic and preferred suppliers, who represented 44 percent of direct materials spend in 2024. We believe that we can have the biggest impact by focusing our engagement efforts on these groups.
