Suppliers' Sustainability

Our Commitment

We are committed to conducting business with the highest ethical standards, and we expect the same of our suppliers. At the same time, we see opportunities to generate shared value through sustainability. As we advance on our sustainability journey, we believe partnering with our suppliers will play an important role in our ability to generate significant positive impacts beyond our own operations.

Our Performance

2018 marked an important year for our supplier sustainability program. With an increased focus on sustainability in our supply chain, we have turned our attention to developing a new approach to engage suppliers, which we hope will expand the potential for our sustainability impact. A key first step was to deploy a pilot auditing program as an extension of the existing quality audit practices. The audit criteria included elements that are fundamental to general risks associated with supply chain management as well as to our core sustainability interests such as health, safety, environmental protection, human rights, ethics, business continuity and quality. In light of our extensive global network of suppliers, it is necessary to prioritize the suppliers we audit, as determined by supplier criticality and exposure to risks, which takes into account the following:   

  • Category of goods and services provided, as it relates directly or indirectly to risks associated with the type of labor performed and with its environmental impact 
  • Risks related to country-level (including regional) regulations applied to supplier activities performed  or products provided 
  • Review of historical performance and concerns  raised by internal key users and purchasing category managers whose assessment includes deep industry and market knowledge

Of the suppliers prioritized for audits in 2018, we were pleased to evaluate 91% of this subgroup on sustainability criteria, which represented 6% of the total number of our critical suppliers. The results of this pilot program have proved to be a reliable process for us to identify risks and opportunities with our critical suppliers while enhancingour ability to collaborate with them. The sustainability audit findings reported by our internal auditors were acknowledged and fully addressed by suppliers. We also had the opportunity to uncover several best practices, which enabled us to identify and recognize some of our top-performing suppliers.

We look forward to integrating sustainability evaluations into our auditing practices after this successful pilot. This will support our ability to collaborate with our suppliers to identify new opportunities for improved social and environmental practices across our supply chain. To this end, we have established the goal of evaluating at least 50% of all our critical suppliers on their sustainability performance by 2025.