Our supply chains are global and complex. Working with our suppliers and experts in the field, Clariant strives to manage the specific environmental and social issues connected with the sourcing of bio based raw materials such palm derivatives and minerals such as tantalum, tin, gold and tungsten.
LOW CARBON RAW MATERIALS
Working with our suppliers to lower our collective carbon footprint
Supply chain related emissions are the main source of Clariant’s corporate carbon footprint. In 2020 Clariant defined an absolute reduction target for its scope 3 greenhouse gas emissions in line with the Science Based Targets initiative (SBTi). For Clariant the most relevant scope 3 emissions are those coming from the production of raw materials purchased, transportation and distribution, fuel- and energy- related activities, and end-of-life treatment of sold products (e.g. incineration, landfill). The company targets a 14% absolute reduction in scope 3 greenhouse from purchased goods and services between 2019 and 2030. Learn more about how Clariant is plans to reduce emissions across its value chain here.
Our commitment to conflict-free sourcing
In recent years, the issue of “conflict minerals” emanating from mining operations in the Democratic Republic of the Congo (DRC) and adjoining countries has been under increasing international focus. Armed groups engaged in mining operations in this region are believed to subject workers and indigenous people to serious human rights abuses. It is also believed that the proceeds from the sale of minerals are used to finance regional conflicts.
Under the U.S. Securities and Exchange Commission (SEC), section 1502, public companies that use minerals including tantalum, tin, gold or tungsten are required to demonstrate they do not source those minerals in conflict areas and have to respect and report a number of due diligence requirements. Clariant does not fall under the scope of the US regulation. However, we are fully committed to ethical business conduct and responsible sourcing. Our commitment compels us to proactively address these concerns and also support our customers and provide them with the adequate assurance. Clariant has performed an in-depth analysis to determine whether we obtain raw materials that may fall under the scope of “conflict minerals”. To our current knowledge, this is not the case. Our suppliers have confirmed to us that they do not source their minerals from the Democratic Republic of Congo or its neighboring countries and have submitted “conflict-free minerals” declarations. As the international supply chain for these minerals is complex, and the tracing of them is challenging, Clariant must rely upon its suppliers to identify the sources of conflict minerals and declare the conflict mineral status of their products.
Clariant has defined and is currently implementing a company policy on conflict-free sourcing. A detailed Guideline to ensure the tracking of materials that potentially originate from conflict-affected and high-risk areas was developed. On this basis, suppliers of materials potentially falling under the scope of “conflict minerals” are reviewed and “conflict-free statements” are collected where relevant. For more information see also Clariant Position Paper Ensuring Ethical and Responsible Sourcing
TRANSPARENCY IN SUPPLY CHAINS
Upholding human rights and legal obligations
The California Transparency in Supply Chains Act requires companies to disclose efforts they have taken to eradicate human trafficking and slavery from their direct supply chain. Clariant has several programs that address this issue.
Clariant is a member of Together for Sustainability (TfS), a joint initiative of major chemical companies to assess and steer sustainability in the supply chain. Clariant and the other companies participating in TfS obtain standardized supplier sustainability assessments done by third party provider EcoVadis. The assessments encompass questionnaires completed by the supplier as well as verification documents and screenings. The assessments include evaluation of compliance with international labor and human rights standards.
Where an audit is deemed necessary, it can be conducted through our membership in Together for Sustainability (TfS). Clariant and the other TfS companies participate in standardized audit programs and share the respective results. The audits are conducted by approved third party audit firms and include evaluation of compliance with international labor and human rights standards.
Clariant has a Code of Conduct for Suppliers that outlines our expectations for suppliers. Our suppliers form an integral part of our value chain network and we expect that they commit to ethical and sustainable business practices with regard to human rights, child protection, and labor standards. Our suppliers are expected to have read and agreed to this code of conduct in full and to act accordingly at all times.
In addition, we have a Clariant Code of Ethics for Employees that makes clear that Clariant recognizes the principles of the International Labor Organization and that those principles apply to our employees as well as our suppliers. Violation of the Code of Conduct may result in disciplinary action. Employees who learn of illegal or improper conduct within the company or at its suppliers are encouraged to report such conduct to their manager or to the legal department, or through a confidential, third-party compliance organization with whom we partner.
Internal training on sustainability for Clariant’s procurement managers is organized regularly. In addition, procurement managers are asked to identify and implement sustainability opportunities in the supply chain as part of their annual performance targets.