We work together with our suppliers to create a sustainable supply database. Our supplier sustainability framework continuously monitors the sustainability level of our suppliers, including human rights.
Together for Sustainability (TfS)
TfS is an industry initiative made up of 30 leading global chemical companies and continues to expand. It aims to improve sustainability practices within the global supply chains of the chemical industry, building on established global principles such as the United Nations Global Compact, UN Guiding Principles on Business and Human Rights and the Responsible Care Global Charter. With TfS, we aim to implement effective, leading edge practices across the industry. We are implementing standardized global sustainability assessments and continue to engage independent, third parties to conduct announced audits of our suppliers, which incorporates a review of their social compliance program, including respecting human rights.
The results of our TfS assessments and audits allow us to identify common areas for improvement and focus improvement activities relating to the suppliers that are assessed through the platform. Improvement areas include the introduction of a formal reporting system on our suppliers’ sustainable procurement performance and business ethics issues, including human rights. 65% of the identified risk suppliers already participated in the 2019 EcoVadis assessments. In 2020, we increased this to 75% by adding suppliers prioritized by risk. Currently 51% of risk suppliers meet our expectations using the EcoVadis score result. In 2021, we aim to accelerate our program by continuing to request improvements and inviting additional suppliers to take part in the assessment. The results of our TfS assessments and audits allow us to identify improvement activities with our suppliers. Read more about our supplier sustainability framework in our annual report.
Assessment of modern slavery risk within our supply chain
As mentioned before, we are aware that multiple risks come with complex and long supply chains, including the risk that modern slavery may occur in these supply chains. As an outcome of the human rights risk assessment which resulted in our salient human rights issues, we recognize that there is an inherent risk of modern slavery in global supply chains, including our own, and particularly as we move into tier two and onwards (indirect) suppliers.
We further accelerated our due diligence program of several high-risk raw materials. Initiated in 2017, these raw materials were identified as possibly impacting human rights in our supply chain, in particular regarding health and safety, working conditions and modern slavery. After analysis and prioritization, materials in scope are cobalt, mica minerals and tin, which are used in the manufacture of some additives, pigments, resins and tin packaging material that we source. In 2019, we published a conflict mineral statement.
With regard to mica minerals, we collaborated with our suppliers to map their entire supply chain back to the mines of origin. For cobalt and tin, we have surveyed all 120 identified suppliers, using templates supplied by the Responsible Minerals Initiative. Of those suppliers who confirmed using high risk materials necessary to the functionality of the product, 81% disclosed their smelters. A total of 57% of these smelters are either listed as active or conformant smelters in the Responsible Mineral Assurance Process (RMAP) standard, or an equivalent standard. Suppliers with a “conflict free statement”, but who did not disclose the smelters in their supply chain, were not regarded as being conformant, since our due diligence is based on the Organization for Economic Cooperation and Development (OECD) Guidance for Responsible Mineral Supply Chains. In 2021, we will continue our due diligence process to ensure our suppliers steer their supply chains towards using only smelters validated via RMAP (or equivalent).