Managing the value chain is a key element in DSM’s sustainability strategy. In
2006 DSM introduced a Code of Conduct for suppliers which is based on DSM’s
Values; Respect for People, Valuable Partnerships and Good Corporate
Citizenship.
The global sustainability program is based on a three-step approach:
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Suppliers sign the
Code of Conduct (PDF: 31 Kb) to declare they comply with DSM’s Values.
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Based on the risk and the total spend a selected number of suppliers are
requested to complete a
self-assessment questionnaire (PDF: 32 Kb).
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Audits of a limited number of suppliers are conducted. The main goal of the
audit is to build a sustainable relationship with our supplier. Moreover,
these audits may result in the development and implementation of jointly
agreed improvement plans.
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In 2007 43% of DSM’s total external spend was covered by Supplier Code of
Conducts agreements. This amalgamated percentage was well distributed across
the regions and spend areas. All new suppliers are obliged to meet our vendor
selection criteria from the very beginning of their relationship with DSM. The
target for the percentage of suppliers who are operating under the Supplier
Code of Conduct will be 90% as from 2011.
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For almost 5% of our total spend, suppliers have completed a self assessment
questionnaire.
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2% of our total spend has been covered by suppliers audits.
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In 2007, seven joint improvement programs were defined, based on
non-conformities observed during the audit. (Such as limited SHE training,
limited freedom of labor union, lack of management systems or lack of
emergency procedures).
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The DSM supplier program worked so well that during 2007 no contracts had to
be terminated on grounds of non-compliance. Six potential suppliers were not
selected purely out of considerations of sustainability.
