Supply Chain Management
In 2012, Kemira’s key achievements related to the Supply Chain sustainability were the new Code of Conduct for Suppliers, Agents and Distributors and the development of a more active Supplier Performance Management Program. Both of these are to be in place and in active use by the end of 2013.
Kemira supplier relationship management includes performance measurement and development, risk management, as well as setting minimum requirements for all business partners.
New Code of Conduct for Suppliers, Agents and Distributors
Kemira is committed to ethical and sustainable business conduct and compliance which are expressed in the Kemira Code of Conduct. Kemira expects its business partners to adhere to the same standards. In order to ensure this, Kemira developed a Code of Conduct for Suppliers, Agents and Distributors during 2012.
Kemira will only deal with reliable business partners who show consideration for the environment and people. Kemira expects its business partners to:
- conduct their business with integrity,
- respect human rights and provide appropriate working conditions and
- protect the environment.
The above expectations are included in all new contracts and agreements that Kemira signs with its business partners as of October 2012.
Communicating the Code of Conduct to the business partners
Supply Chain Management is responsible for the implementation of the new Code of Conduct for Suppliers, Agents and Distributors. The negotiating Sourcing Managers, who are in contact with the suppliers, have attended training on the new Code of Conduct, and it is their responsibility to systematically discuss it with the business partners.
Kemira's new contract database tracks suppliers' approval of the Code of Conduct, ensuring the monitoring of whether the business partners have accepted the Code of Conduct. In possible cases of misconduct or below par performance, Kemira is prepared to work together with its business partners and help them with the relevant points of improvement, depending on the area and gravity of low performance.
Respect for human rights
All of the significant suppliers covering more than 40% of Kemira's annual spend have signed a contract to undergo a human rights screening. The contract commits the suppliers to fair and equal treatment of their workforce, and specific attention is paid to not using child labor in any of their operations.
New suppliers have to undergo a minimum requirement screening that checks compliance with applicable laws, the Kemira Code of Conduct, and the Kemira Code of Conduct for Suppliers, Agents and Distributors, and a risk assessment.
In 2012, no contracts with significant suppliers or business partners were declined or subject to other actions as a result of human rights performance.
Supplier performance management
As part of the development of a more systematic supplier relationship management, Kemira's objective is to have an active Supplier Performance Management Program in place by the end of 2013. This, as well as the implementation of the new Code of Conduct for Suppliers, Agents and Distributors, is one of the Group level sustainability targets set in 2012.
To reach its supplier performance management target, Kemira has started to carry out regular discussions between the sourcing managers and suppliers. The discussions deal with factors such as supplier performance based on data and monitored information, supplier comparison, and possible needed points of improvement. The discussed issues as well as concerted and implemented actions will be available in a database, ensuring the systematic development of the relationship between Kemira and its suppliers.