Running a sustainable supplier program

Novozymes has a comprehensive supplier program with integrated evaluation of sustainability. The sustainable supply chain system covers all aspects of management from approval of new suppliers to performance evaluation.

Running a sustainable supplier program

The objectives of the program are:

  • To systematically assess opportunities to improve performance and mitigate risk in our supply chain
  • To mitigate risks in order of importance and opportunity

Sustainable supplier program in Novozymes

We continue to assess new and existing suppliers in our supplier evaluation system covering commercial, quality and sustainability performance, with target coverage of at least 90% of total spend at all times. Significant suppliers have been screened on human rights issues, including freedom of association, nondiscrimination, working hours, wages and benefits, disciplinary measures, child labor, and forced labor. Furthermore, in 2012 we have finalized all the 11 open supplier action plans for noncompliant suppliers through dialogue with suppliers to resolve commercial, quality, and sustainability issues or, in a few cases, discontinuing further purchases from selected suppliers.

As we move along, the ambition is to include more supplier development and collaboration in the sustainable supply chain program. We have set a target to ensure 100% supplier compliance to our supplier program for commercial, quality and sustainability performance, for all suppliers with a 12-month rolling spend above DKK 1 million. Focus areas in 2014 will include enhancing of internal training for purchasers and auditors. Another intention of the program is to promote and reward superior sustainability performance through incentives, capacity building, and engagement projects. Our next steps to boost supply chain sustainability will also focus on substitution of selected raw materials with sustainable alternatives, having lesser environmental impact. We plan to start involving suppliers more openly in innovation and finding joint sustainable solutions, to improve performance throughout our supply chain.
 
Read more on responsible purchasing and supplier management at Novozymes.