Holistic

MANAGEMENT APPROACH

In a more and more globalized value chain, balancing cost efficiency and a high level of quality, ecological and social standards with a sustained security of supply is a major challenge. Increasingly closer relationships with suppliers and customers offer opportunities to create sustainable value with secure, high value-added value chains. At the same time, the supply chains at procurement may be exposed to potentially significant risks. Clariant is fully committed to continuously reducing these risks, by sourcing responsibly and therefore, increasing the sustainability in its supply chain.

OUR COMMITMENTS

In order to underline its commitment to sustainability, among other integral parts of our business strategy, Clariant developed a Code of Conduct for Suppliers which is binding. We expect our suppliers and contractors globally and locally to comply with this Code of Conduct for Suppliers and to work hand in hand with us in meeting future sustainability challenges.

A strong example of our commitment to sustainability is our membership, since 2014, in Together for Sustainability (TfS). TfS is a joint initiative of more than 30 chemical companies, with a mission to drive sustainability performance evaluations and improvements across chemical supply chains. The TfS framework consists of online supplier sustainability assessments run by the service provider EcoVadis, as well as on-site supplier sustainability audits run by specialized auditing companies. Participation in Together for Sustainability enables Clariant to improve transparency and efficiency and lower risks in its procurement process.

Learn more about our collaboration with Together for Sustainability here.

CAPABILITY BUILDING

Ensuring continuous training among suppliers and those responsible for sourcing

Active supplier communication and engagement is an essential element of Clariant’s supply chain sustainability strategy. Standard responsible sourcer and supplier toolkits are regularly updated. In addition, Clariant Procurement systematically engages with suppliers in key sourcing markets, such as China, Brazil, and India to explain the company’s sustainability efforts, strategy, and expectations of suppliers via dedicated external training and webinars.

Clariant organizes internal training initiatives on a quarterly basis to increase awareness and enhance its staff capability to evaluate sustainability performance in our supply chain. The training mainly targets employees within the Global Procurement Services (GPS) organization and business unit associates. The focus is on improving processes and structures, as well as coaching on supplier sustainability engagement best practices. Learning plans are designed to help employees to develop the competences that will help them excel in their current (and even future) roles.

PERFORMANCE

Sustainable supply chain indicators

Clariant maintains a comprehensive and detailed supplier information database enabling a wide variety of analyses on both commercial and non-commercial Key Performance Indicators (KPIs). These non-commercial indicators enable us to track supplier performance in terms of not only of criteria such as quality, service, and e-procurement matter, but also sustainability.

 

Key Figures

  



     
    2015    2016  2017
 2018 2019
2020

 3rd Party Sustainability Assessments1

           
 Percentage of direct spend (raw materials) covered 53% 63%  65%  74% 78%
 80%
 Number of shared Sustainability Assessments1 4442 6383
8692  10566 12200 
 11500
 3rd Party Sustainability Audits2            
 Number of shared Sustainability Audits 321
724
1187
1526  2030 2000
             
Spend covered with Raw material based risk assessment3 40%
42%
50%  60% 65%
70% 
             
 Automation rate4 58% 63% 65% 70% 73%
 
             
Supplier individualized Key Performance Review5 < 46% >90% >95% >95% 99%
 
             
Supplier evaluation spend coverage (direct spend)  42% 65%  75%  82%  85% 88% 
             
Procurement workforce development6 < 40%  >90% >97%  >97% 97%
 

 

1 Based on TfS supplier assessments
2 Based on TfS supplier audits
3 Spend coverage of Group wide Risk Assessment of Top Raw Materials evaluating, addressing and tracking progress of identified risks in the area of Market / Price, Quality, Availability, Supplier Capacity, Sustainable Sourcing & Innovation, Country Risk and Legal Requirement (REACH) valid to 2020
4 Automation Rate: Fully automated (Zero Touch) order processing of all Indirect Spend, % based on transactions
5 Based on core Indicator (Price, Quality, Terms, Service) coverage of Direct and Indirect Spend
6 Share of Procurement Employees with personalized strength / opportunity assessment and individual learning plan

 

Go to our GRI Report to view the latest key figures on sustainability assessments, environmental performance and mitigating actions in our supply chains.

  • Sustainability

    Whether the world must become sustainable is a question we’ve long stopped asking ourselves. We are much too busy working on how this can be done. We have set out with passionate people, to create leading-edge operations and innovative solutions that mean progress for everyone today while sustaining the world for our children tomorrow. more

  • Climate Change

    The science is clear, global temperature rise is a reality. According to reports from the Intergovernmental Panel on Climate Change (IPCC), we have just a short amount of time before climate change becomes irreversible and changes our world forever. At Clariant, we take our responsibility for the planet seriously. We rely on the environment’s resources and are steadfast in our commitment to sustainable growth. more

  • Responsible Sourcing

    Our suppliers and supply chain relationships are a key part of our success. For Clariant, responsible sourcing means an untiring commitment to upholding high social, environmental and governance standards when making sourcing decisions. Through our membership in the Together for Sustainability initiative and our commitments, among others, to the Science Based Targets Initiative and Roundtable on Sustainable Palm Oil, we strive to drive sustainability performance in our supply chains and to promote transparency and solidarity. more

  • Sustainable Logistics

    Clariant works with logistics services providers to store, handle and transport raw materials, intermediates and finished chemical products. We are committed to ensuring that these operations are carried out safely and responsibly. more

Disclaimer:
This information corresponds to the present state of our knowledge and is intended as a general description of our products and their possible applications. Clariant makes no warranties, express or implied, as to the information’s accuracy, adequacy, sufficiency or freedom from defect and assumes no liability in connection with any use of this information. Any user of this product is responsible for determining the suitability of Clariant’s products for its particular application.<br />
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* Nothing included in this information waives any of Clariant’s General Terms and Conditions of Sale, which control unless it agrees otherwise in writing. Any existing intellectual/industrial property rights must be observed. Due to possible changes in our products and applicable national and international regulations and laws, the status of our products could change. Material Safety Data Sheets providing safety precautions, that should be observed when handling or storing Clariant products, are available upon request and are provided in compliance with applicable law. You should obtain and review the applicable Material Safety Data Sheet information before handling any of these products. For additional information, please contact Clariant.<br />
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* For sales to customers located within the United States and Canada the following applies in addition: No express or implied warranty is made of the merchantability, suitability, fitness for a particular purpose or otherwise of any product or service.<br />
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© Trademark of Clariant registered in many countries.<br />
® 2019 Clariant International Ltd 

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Fabienne Knecht
Fabienne Knecht
Corporate Sustainability Affairs