Responsible sourcing It is important to us that the materials we use to manufacture our products are procured in a socially and environmentally responsible manner. Sourcing these materials responsibly will allow us to positively impact stakeholders in our supply chain. Ensuring that we have a deep understanding of these issues also helps us identify and mitigate potential risks. We manage our supply chain through our three business units: Consumer Microbial Control (CMC), Industrial Microbial Control (IMC), and Nutrition, Care & Environmental (NCE). Many of the materials we procure are specific to a particular product and site. However, common approaches are used across all business units. We prioritize procuring goods from renewable resources that are grown and produced under environmentally and socially responsible conditions. To ensure our suppliers are aligned with our values and ambitions, we conduct supplier screenings and assessments, and we have updated our global Supplier Code of Conduct in 2022. In addition, we comply with regionally specific requirements, such as the UK Modern Slavery Act Statement, the Swiss Ordinance on Due Diligence and Transparency in relation to Minerals and Metals from Conflict-Aected Areas and Child Labour and the California Transparency in Supply Chains Act Statement. The materials we procure contribute to our greenhouse gas (GHG) emissions footprint that we are aiming to reduce. We can achieve this by selecting more environmentally friendly transportation methods and materials. We also prioritize that workers at our supplier sites are treated safely, ethically and with respect in line with our corporate values of Safety and Health, Ethical Behavior, and Respect for People and Planet. To create more sustainable supply chains across the business, we have set a goal for 100% of our key suppliers to complete an environmental, social and governance (ESG) assessment by 2030. Supplier screening & assessment Prior to entering into a contractual agreement with a supplier, we conduct supplier screening and assessments that consider risk factors such as financial, geopolitical and environmental risk. We are commied to making sustainability improvements within our and our suppliers’ operations. We rolled out our sustainable sourcing strategy in late 2022, designed to comprehensively manage and reduce our Scope 3 emissions by working collaboratively throughout our supply chain. In the future, we plan to join the Together for Sustainability (TfS) initiative and begin ESG assessments of our suppliers using the EcoVadis plaorm. TfS was founded by chemical sector companies in 2011 and aims to support chemical companies in assessing, auditing and improving the sustainability practices of their supply chains. As a TfS member, we will have access to a database of TfS supplier assessments, audits and be able to develop and improve in all areas of our sustainability sourcing practices. TfS audits can be requested by members and are an on-site examination of a supplier’s business sites and practices according to a specific set of sustainability criteria. Audit results are accessible to every TfS member, facilitating in- depth insights into the performance of a supplier.
2022 Sustainability Report | The Power of Science & Sustainability Page 33 Page 35