Our supply chain commitments
Committing to sustainability throughout our supply chain
When it comes to sustainability, our high standards extend to our supply chain. We seek to work with suppliers who share our values and maintain sustainable practices across their operations and their supply chain.
Using the magnitude of our supply chain footprint to scale up positive impact
Promoting science-based climate action
Partnering with the Science-Based Targets initiative (SBTi), we have launched the world’s first 1.5° C science-based framework to decarbonize the cement industry. With this framework, we aim to empower as many companies as possible to join us on the journey to net zero.
As part of this effort, we are engaging our suppliers to identify and manage the environmental impact of their operations and the life cycle of products and services we purchase from them.
We focus our efforts on products and services that have the highest impact on climate, water, air emissions, waste, biodiversity and land use. In every sourcing decision, we consider suppliers’ compliance with environmental standards and regulations and environmental performance.
As part of our net-zero strategy, we are committed to reducing indirect CO2 emissions from our supply chain (scope 3) and we take a rigorous and comprehensive approach to measuring and managing them.
We are further committed to reduction targets, validated by the SBTi, in 3 areas covering 75% of our scope 3 emissions: downstream transportation, fuels and purchased clinker and cement.
Respecting human rights
Responsible business conduct is an integral part of our procurement strategy. We actively monitor and verify compliance with our Supplier Code of Conduct. Our Code is based on the UN Global Compact, OECD Guidelines for Multinational Enterprises, UN Guiding Principles on Business and Human Rights, and the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work.
Due diligence is carried out in every market where we operate to identify, prevent and address human rights breaches.
Promoting health and safety
Holcim is committed to conducting business with zero harm to people and to creating a healthy and safe environment for our employees, contractors, communities, and customers.
We take a systematic approach to health and safety management within our supply chain, verifying compliance with applicable standards and regulations. Suppliers and contractors are selected based on their demonstrated qualifications in these areas. Ongoing training and performance monitoring enables effective management of health, safety and wellbeing.
Steps we take to create a sustainable supply chain
Sustainability compliance and performance are embedded within our sourcing decisions, supplier selections and purchase-to-pay processes. Our “Sustainable Procurement Management Standard” supports our countries in implementing responsible sourcing practices that are enforced in our governance strategy through the “Minimum Control Standards.”
A risk-based screening methodology identifies potential ESG and health and safety impacts within our supply chain. This three-step approach is based on product and service risks, business relationship exposure and country risk level.
Our three-step approach to verify compliance includes a self-assessment, a fact-finding process and field audits for high-risk procurement categories. We also apply ongoing human rights due diligence, stakeholder engagements and impact assessments.
In collaboration with our suppliers, we identify and prevent potential breaches of our Supplier Code of Conduct by implementing improvement action plans where needed. We cease business relationships and reserve the right to exclude suppliers that refuse to comply.
Our suppliers, like our employees and any external stakeholder, have access to our “grievance mechanism line,” an independent platform to raise concerns regarding business practices.
Suppliers’ ESG and health and safety performance is continually monitored through regular meetings and evaluation processes. We include sustainability in our “Supplier Scorecard” among other performance criteria.
Sustainable procurement actions are communicated via our Group Sustainability Performance Reports, according to GRI standards, along with relevant KPIs.