The environmental, social and economic challenges we face are all connected. This is recognised by the UN Sustainable Development Goals (SDGs). Covering a diverse range of issues including gender equality, sustainable cities, access to clean water and good governance, the Goals are becoming well known now, so it is important for businesses to understand their contribution as they report against them.
As a signatory of the UN Global Compact and in our support of Sustainable Development Goal 12, we work with stakeholders to drive continuous improvement in the areas of human rights, labour standards and environment, and to act against corruption.
Responsible sourcing is one of the three strategic objectives for our supply chain operations. These means that it is incorporated into key performance objectives and individual objectives across all our regions, and has its own assurance system that is integrated into our Corporate Governance Framework.
We require our suppliers to comply with our Code of Business Conduct for Suppliers (the Supplier Code), which sets out our expectations, based on the 10 principles of the
UN Global Compact. We also encourage suppliers to strive for continuous improvement by investing in their own sustainability agenda to meet or exceed global best practice.
The Supplier Code is considered an integral part of any agreement that regulates the relationship between Tetra Pak and a supplier. All new suppliers must endorse the Supplier Code before we start any business with them, and maintain their commitment throughout the relationship.
In 2017, 98 percent of our suppliers (by spend) across all regions had signed the Supplier Code. For packaging raw material suppliers, the rate is 100 percent. An update for 2018 will soon be available.
We have put in place a Responsible Sourcing Assurance System that enables us to evaluate compliance with our Supplier Code. On a rolling basis, prioritised suppliers are requested to perform self-assessments and on-site audits, and implement corrective actions in case of any material findings. Non-compliance may result in terminating the relationship with a supplier.
We use Sedex, the Supplier Ethical Data Exchange, to coordinate the performance and follow up of the annual self-assessments of selected suppliers. In 2018, we expanded our work with EcoVadis to help our procurement teams better monitor environmental, social and governance issues in the supply chain.
In case of specific concerns, we ask suppliers to conduct on-site audits using the SMETA methodology (Sedex Members Ethical Trade Audit) and implement corrective actions within an agreed timeframe.
Supplier managers across all purchasing categories and regional clusters play a key role in engaging with suppliers and making responsible sourcing part of our common agenda.
We have launched an e-learning module on responsible sourcing, which is now mandatory for supplier managers. Going forward, we will deliver additional focused training and continue our efforts to further strengthen responsible sourcing competences across the entire organisation.
We have also established a Forum of Expertise, made up of central and local supplier management representatives, to ensure that responsible sourcing is integrated into day-to-day activities. The forum also secures that specific category and local requirements are considered in our global strategy.
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About Tetra Pak
Together with our customers we make food safe and available, everywhere. Since the start in 1951 we have taken pride in providing the best possible processing and packaging solutions for food.