A global procurement guideline defines the behavior of our employees in their dealings with suppliers across the entire LANXESS Group. We have specified standardized workflows in the context of procurement in more detail in a process description. In our training program for strategic purchasers (ProTrain), we also pay due attention to the topic of sustainability. Based on the principles of the U.N. Global Compact, the International Labour Organization (ILO), Responsible Care® and other CSR codes, we expect our suppliers to comply with national and other applicable laws and regulations for environmental protection, health and safety at work and with regard to labor and recruitment practices. Acceptance of the requirements of our "Supplier Code of Conduct" is an essential prerequisite for any supplier wishing to work with us.
In the interests of safe processing at our production facilities, there is a particular focus on the procurement of raw materials. It is thus essential for suppliers to present an up-to-date safety data sheet for the procurement of each raw material. In the case of raw material deliveries from non-European suppliers, our purchasing department clarifies which obligations have to be fulfilled under the REACH Regulation. Since the acquisition of Chemtura, we have also being using the raw material tin, which is classified as a conflict mineral. We purchase tin only from certified dealers who can prove that their goods come from a conflict-free source.
We strive to promote sustainability and increase transparency throughout our supply chain. As a founding member of the “Together for Sustainability” (TfS) initiative, our goal is to promote sustainability, increase transparency throughout our supply chain, and thereby further minimize procurement risks. The initiative, which is currently supported by 25 international chemicals companies with an accumulated purchasing volume of more than €281 billion (estimate), is aimed at assessing and continuously improving sustainability activities in the chemicals industry supply chain. The focus here is on human rights, prevention of child labor, labor standards, occupational safety, environmental protection, and business ethics. TfS has established itself in the chemicals industry as the clear standard for a sustainable supply chain.
It is also encouraging to see that our suppliers’ average Ecovadis sustainability assessment of 46 points is above the Ecovadis benchmark of 43 points.
Data from Ecovadis also form the basis for a systematic sustainability risk analysis that we developed in 2019. Taking account of risks in relation to specific goods groups and countries, we will use this tool to identify suppliers with an increased sustainability risk.