As a signatory of the UN Global Compact and in our support of Sustainable Development Goal 12, we work with stakeholders to drive continuous improvement in the areas of human rights, labour standards and environment, and to act against corruption.
Responsible sourcing is a strategic objective for our procurement organisations. These means that it is incorporated into key performance objectives and individual objectives across all our regions, and has its own assurance system that is integrated into our Corporate Governance Framework.
We require our suppliers to comply with our Code of Business Conduct for Suppliers (the Supplier Code), which sets out our expectations, based on the 10 principles of the UN Global Compact. We also encourage suppliers to strive for continuous improvement by investing in their own sustainability agenda to meet or exceed global best practice.
The Supplier Code is considered an integral part of any agreement that regulates the relationship between Tetra Pak and a supplier. All new suppliers must endorse the Supplier Code before we start any business with them, and maintain their commitment throughout the relationship.
We have put in place a Responsible Sourcing Assurance System that enables us to evaluate compliance with our Supplier Code. On a rolling basis, prioritised suppliers are requested to perform self-assessments and on-site audits, and implement corrective actions in case of any material findings. Non-compliance may result in terminating the relationship with a supplier.
We use Sedex, the Supplier Ethical Data Exchange, to coordinate the performance and follow up of the annual self-assessments of selected suppliers. In case of specific concerns, we ask suppliers to conduct on-site audits using the SMETA methodology (Sedex Members Ethical Trade Audit) and implement corrective actions within an agreed timeframe.
We also work with EcoVadis to help our procurement teams better monitor environmental, social and governance issues in the supply chain. We are ranked in the top 1 percent of companies by EcoVadis for Environment and Sustainable Procurement.
In 2019, we enhanced our partnerships with third parties, such as Sedex and EcoVadis, to optimise the coverage of assessments across our supplier base, using a risk-based approach. We also selected a new supply chain risk management system that integrates third-party data, such as from EcoVadis, with artificial intelligence and media screening. This allows continuous monitoring, strengthening our responsible sourcing and supplier risk management activities.
Moreover, as part of the transformation of our Supplier Management organisation, we created a central governance function, working alongside purchasing categories to set strategies and provide expert support in the areas of sustainability, compliance and risk management.
We have launched and since updated an e-learning module on responsible sourcing for the attention of all employees involved in procurement.
We have also established a Forum of Expertise, made up of central and local supplier management representatives, to ensure that responsible sourcing is integrated into day-to-day activities. The forum also secures that specific category and local requirements are considered in our global strategy.