Background
Companies are increasingly expected to take responsibility not only for their own operations but also for that of their suppliers.
Position on responsible purchasing
Novozymes supports taking into consideration sustainability as well as commercial and quality aspects when dealing with suppliers.
Novozymes’ process for screening and evaluating the Company’s suppliers ensures a sustainable and systematic sourcing practice. The supplier evaluation process is based on the insight and knowledge of skilled category managers who through different medias collect the information needed to be able to identify risks and opportunities in relation to both new and existing suppliers.
In this process the category managers are supported by the advanced supplier performance management system, which consists of an integrated set of assessment criteria:
- Commercial performance
- Quality performance
- Environmental performance
- Employee health & safety performance
- Human and labour rights performance
- Business integrity performance
Based on these criteria, the supplier performance management system helps identify risks and opportunities in Novozymes’ supply chain by pointing out high risk suppliers as well as awarding preferred status to suppliers with a strong overall performance.
Engagement the sustainable solution
Novozymes have an internal audit corps that conducts supplier audits every year to ensure compliance among a selection of high risk suppliers. However, in the long term the company believes that collaboration and engagement with suppliers will have a larger impact than control alone.
Dealing with non-compliance
Even with the most effective risk management tools and systems, Novozymes can never guarantee that violations will not occur in the Company’s supply chain. However, the company can limit the risk significantly. If an incident occurs which violates relevant laws, regulations or international conventions on human rights, labour or environmental standards, the category manager will take immediate action by exploring the issue in greater depth. This means contacting the supplier in question to develop an action plan and thereby seeking to help the supplier improve his performance rather than just ending collaboration. However if suppliers are unwilling to improve, Novozymes will maintain the right to end the collaboration with immediate notice.
Inquiry on Novozymes and Responsible Purchasing
You are welcome to contact Novozymes´ Responsible Purchasing specialists here