Building a sustainable supply chain requires that individuals make smart decisions. We created a global procurement policy that encourages everyone involved in the supply chain—from employees to vendors—to find a better way. We view our suppliers as an extension of ourselves, and we’re committed to working with suppliers who share our commitment to operate responsibly. Mismanagement of our supply chain could negatively impact a wide range of Chemours’ stakeholders, internally and externally, with the potential to create social, environmental, or economic impacts.
Building a Best-in-Class Procurement Policy
Responsible procurement is a key aspect of our responsible chemistry commitment and is how we ensure the longevity of our supply chain and, ultimately, our ability to operate . Our extensive and interconnected supply chain is critical to the success of our business; it includes suppliers of raw materials, contract manufacturing, carriers, warehousing, distributors, and service providers. Supplying our operations requires that we move significant volumes of raw and intermediate materials, including hazardous materials, around the globe to meet our customers’ needs.
Creating a best-in-class procurement organization requires that we set clear objectives for how we conduct procurement at Chemours. We have high standards for how we operate, and by enforcing our responsible procurement program and Supplier Code of Conduct, we expect our supplier partners to do the same. We choose to work with suppliers who:
- Provide a safe workplace and comply with all regulations
- Protect and advance human rights
- Share our commitment to environmental stewardship
- Collaborate with us for great results
We measure supplier sustainability performance through our supplier corporate responsibility assessment (SCRA), conducted in partnership with EcoVadis, a leading provider of business sustainability ratings for global supply chains.
During 2019, the first full year of using our SCRA, we focused on incumbent suppliers with high spend. This allowed us to build a solid relationship with EcoVadis and gain a thorough understanding of its assessment scorecards. By the end of 2019, we grew supplier participation in the SCRA to cover 38.6% of our supply chain by spend, making significant progress towards part one of our goal to baseline 80% of suppliers by spend.
Measuring Supply Chain Environmental and Social Impacts in Order to Improve
We assessed 38.6% of suppliers by spend through the SCRA program by the end of 2019, which included a supplier environmental and social performance evaluation.
- The average environmental score for our assessed suppliers was 52% (on a scale of 0 to 100). This is higher than the EcoVadis benchmark of 43% (based upon all the participating companies in its network).
- The average labor practices score for our assessed suppliers was 54.0%, which is 9.2% higher than the EcoVadis benchmark.
- The average fair business practices score for our assessed suppliers was 48.0%. This is also higher than the EcoVadis benchmark of 40.5%.