DSM Global Supplier Sustainability Program

DSM’s Supplier Sustainability Program covers both global and local suppliers. It is comprised of two main elements: compliance and eco-footprint reduction.

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Global Supplier Sustainability Program

The DSM Global Supplier Sustainability Program is part of our strategy for achieving our sustainability aspirations.

The program involves a three-step approach. First, a Supplier Code of Conduct sets sustainability guidelines for suppliers. Second, supplier self-assessment questionnaires allow them to measure their activities. Third, supplier audits are used for large or high-risk suppliers, based on spend, country, cluster/category type, security of supply and specific business risks.

Helping our suppliers

A powerful factor in this program’s success is our willingness to help suppliers achieve the level of compliance we demand. Take our audits. These aren’t just a check on performance and compliance – they are also a great way to build a sustainable relationship with that supplier. These same audits can also lead to the development and implementation of joint improvement plans, such as improving safety training, management systems, emergency procedures, and more.

We use a quantified supplier evaluation tool to identify and rate ‘show stopper’ and high-risk issues. We also employ clear criteria to define what we consider to be significant issues. Based on their overall score, suppliers are categorized as follows:

 Supplier Category A: Sustainable supplier  No follow up needed
 Supplier Category B: Acceptable sustainable supplier  Specific improvements need to be addressed
 Supplier Category C: Unacceptable sustainable supplier  An improvement program needs to be implemented
 Supplier Category D: Rejected sustainable supplier  Supplier to be replaced

So far, our supplier sustainability program has worked so well that we haven’t had to end any contracts due to non-compliance. However, we have rejected a small number of potential suppliers on the basis of their sustainability credentials.

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