Novozymes position statement on responsible purchasing

Novozymes considers sustainability, commercial, and quality aspects when choosing suppliers.

Novozymes is committed to doing business with high ethical standards. Novozymes has been a signatory of the UN Global Compact since its establishment in 2001 and a LEAD member since 2011. Novozymes follows the Global Compact’s Ten Principles to meet fundamental responsibilities in the areas of human rights, labor, environment and anti-corruption. The Ten Principles guide Novozymes’ approach to doing responsible business across our value chain, including our selection of and engagement with our more than 10,000 suppliers. 
 
Novozymes’ process for screening and evaluating the company’s suppliers ensures a sustainable and systematic sourcing practice. It has four steps:

1. Inform

Novozymes has developed guidelines to inform new and existing suppliers of the company’s requirements to suppliers’ conduct and performance. The guidelines can be downloaded here:
pdf16  In English
 pdf16 In Portuguese
 pdf16 In Chinese
 

2. Approve

Novozymes evaluates key suppliers according to assessment criteria such as:
  • Sustainability performance 
    Environmental stewardship, employee health and safety, human and labor rights, business ethics, and supply chain management
  • Commercial performance
    Pricing, on-time delivery, service, complaints, innovation, and credit rating
  • Quality performance 
    Product specifications, legal compliance, quality management systems, and audit acceptance
 

3. Monitor

Novozymes monitors the performance of key suppliers through an ongoing evaluation process. In the long term the company believes that collaboration and engagement with suppliers will have a greater impact than control alone.
 

4. Engage

Even with the most effective risk management tools and systems, Novozymes can never guarantee that violations will not occur in its supply chain. If an incident occurs that violates relevant laws, regulations, or international conventions, Novozymes will contact the supplier to develop actions to help the supplier improve its performance. If suppliers are unwilling to improve, Novozymes will maintain the right to end the collaboration with immediate notice.

 

Last revised May 2017