Engaging with suppliers
In 2015, we continued to work with our suppliers to develop new partnerships and promote a sustainable working environment.
We once again hosted a Supplier Innovation Day in Bagsvaerd, Denmark, giving suppliers the opportunity to present their solutions to a predefined challenge at Novozymes. “Dewatering of wastewater” in Novozymes’ production was the theme of the day, with suppliers invited to present their solutions to our staff and management. This enabled us to identify innovative technological solutions and engage with a range of potential future suppliers.
Since 2009, Novozymes has systematically assessed suppliers from both a risk and opportunity perspective through the supplier program for responsible sourcing. The program evaluates suppliers based on their commercial, quality and sustainability performance, and it focuses on high-risk suppliers. In 2015, overall adherence to the supplier program was 100%, which is above our target of 96.5%.
In 2015, we increased responsible sourcing efforts to include specific measures to combat net deforestation in the supply chain. All of our suppliers of directly sourced agricultural raw materials shared either their policy against deforestation or signed a commitment letter stating that the materials they supply to us do not contribute to further net deforestation.
Furthermore, in 2015 we updated our Supplier Guidelines, which are communicated to all new suppliers. The new version includes criteria related to quality, environment, employee health and safety, human and labor rights, business ethics and supply chain management. The major additions were expectations regarding no-net deforestation and zero tolerance for land grabbing. Moving forward, the Supplier Guidelines will be appended to new contracts in the form of a legally binding set of requirements.