Sourcing Sourcing for shared value 53
Sourcing for shared value Bringing benefits to all involved We are committed to sourcing our raw materials in a responsible way and working with suppliers who respect people and the environment. We want to bring long-term stability to our supply chains and to the communities from whom we source. Our comprehensive approach, Sourcing for Shared Value, builds on and further strengthens the long-term commitment to sustainable procurement practices based on shared value, securing traceability and supply of key natural resources, and supporting local communities.
raw material suppliers were registered with Sedex. These suppliers represent about two-thirds of our spend. We have also worked to ensure that audited suppliers had closed all open non-conformities. At the end of 2019, our supplier compliance rate reached 85%. Our target is to ensure that all audited suppliers are compliant by 2020, which means they have closed all non-conformities identified during the audit. Meanwhile, we are mapping the supply chains of key raw materials of natural origin to understand how they are organised and to collect information on the role, importance and location of intermediate suppliers, right up to the farm level. The next step is to check the practices in each supply chain against our Responsible Sourcing Policy. Where we find risks or gaps we ensure the relevant suppliers have improvement plans in place. By the end of 2019 we were mapping 50 raw material categories and sourcing 33 raw material categories in a responsible way.
Responsible Sourcing Through our Responsible Sourcing programme, we collaborate with our suppliers to achieve high standards in business ethics and respect for people and the environment. We continue to work with our main direct suppliers of raw materials for their sites to be audited according to Sedex Members Ethical Trade Audit (SMETA), one of the most widely used ethical audit formats worldwide. In 2019, a total of 326 key
Different raw materials sourced
>
11,000
Key raw material suppliers registered with SEDEX
Sourcing countries
>
100
Supplier compliance rate
326 85 %
SEDEX / SMETA Givaudan is an active member of Sedex, a global platform for sharing responsible sourcing data on supply chains. Sedex enables companies to manage their performance around labour rights, health & safety, the environment and business ethics. Their collaborative approach allows companies and their suppliers to exchange information and work together to better manage and improve their business’ ethical performance. SMETA is Sedex’s social audit procedure, providing a globally recognised way to assess responsible supply chain activities.
Givaudan – 2019 Integrated Annual Report
