JM 2016-2017 Sustainability Report

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JM SUPPLY CHAIN

JM procures over 50,000 materials and technical products from nearly 13,000 suppliers worldwide and transports thousands of products to customers all over the globe. JM spends over $1.5 billion per year on purchasing materials and goods and services on three continents. Purchased goods include sand, soda ash, borates, chemicals, recycled glass cullet and renewable carbohydrate-derived binders used to manufacture premium-quality building materials and specialty products. Although JM does not have a formal policy giving preference to local suppliers, we competitively bid local suppliers within a manufacturing plant’s geographic area. In 2017, JM sourced approximately 91 percent of its global spend locally.1 We also obtain numerous services from suppliers such as utility providers. JM partners with an energy management firm on a variety of services to achieve a stable, cost-effective operational energy program. Customers rely on JM to manage operations and supply chain activities in a manner that supports economic growth, respects nature and positively contributes to social wellbeing. With this in mind, we audit major suppliers to ensure they’re operating within legal limits and following agreed-upon contractual requirements. We also ensure that they’re complying with JM’s Code of Conduct. When auditing for compliance, we are especially vigilant when it comes to environmental, ethical and human rights issues.

RAW MATERIALS CHEMICA L INPU T S

F UEL S

MINED INPU T S

RECYCL ED INPU T S

RENE WA BL E INPU T S

OT HER INPU T S

RAW MATERIALS HIGHLIGHTS:

LOGISTICS HIGHLIGHTS:

• 13,000 suppliers

• JM supports Truckers Against Trafficking as a Silver Level Sponsor

• 91 percent of global spend sourced locally • Supplier guidelines screen for the following:

1

JM defines local as “in country“ based on the "order-from address" of the supplier.

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LOGISTICS

T R A NSPOR T

Being the Supplier of Choice means delivering the JM Experience every day through our procurement practices. We are committed to cross-functional collaboration, which results in better demand planning and inventory management. This helps JM achieve cost savings while delivering ongoing benefits to our customers.

- Illegal Child Labor - Conflict Minerals - Ethical Behavior C O N T EN T S

GRI INDE X

• JM shortens distances between regional offices and suppliers • JM uses intermodal transportation


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