Responsible purchasing

Novozymes supports taking into consideration sustainability as well as commercial and quality aspects when dealing with suppliers.

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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 media 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 and safety performance
  • Human and labor 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.

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Engagement - The sustainable solution

Novozymes has 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 greater 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 our supply chain. However, we can limit the risk significantly. If an incident occurs that violates relevant laws, regulations, or international conventions on human rights, labor, 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, thereby seeking to help the supplier improve his or her 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.

Inquiries concerning Novozymes and responsible purchasing

For questions relating to this position please contact us.