2016 Sustainability Report

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Supply Chain

At PPG, we believe that achieving sustainability within our company is only part of the equation. We also must work to ensure our suppliers around the world are equally committed to sustainability as a core value.

We expect our suppliers and their subcontractors to fully comply with all applicable laws and to adhere to internationally recognized environmental, social and governance standards. Our Global Code of Ethics, Supplier Sustainability Policy and Global Supplier Code of Conduct clearly state our expectations for every supplier.

Periodically, we assess the sustainability of our top 100 suppliers globally against our expectations. These suppliers represent approximately 25 percent of our annual procurement spend.

Areas evaluated include:

  • Policies, including sustainability, code of conduct, anti-corruption and bribery, human rights, conflict minerals, proprietary technology, health and safety and environmental sustainability;
  • Criminal violations involving corruption, bribery or antitrust;
  • Spills, chemical releases and environmental contamination;
  • Significant health and safety incidents and notices of violations;
  • Citations or fines related to a breach of labor law;
  • Process to educate, train and audit employees regarding company policies; and
  • Sustainability review processes to monitor corporate and supply chain performance.

We conducted our last assessment in 2015 and continued to work with select suppliers during 2016 to better align their sustainability culture with our expectations.

Responding to concerns raised by a stakeholder in 2016, we engaged an independent auditor to do an onsite investigation of potential child labor violations at a supplier based in India. The auditor discovered no violations, confirming the findings of our own audits of the company. (See the Stakeholder Engagement section for additional information.)

Our Europe, Middle East and Africa region evaluates approximately 85 percent of its suppliers each year. The evaluation covers many areas that pertain to sustainability, such as human rights and anti-corruption, as well as specific sustainability performance indicators.

In addition to helping suppliers evaluate and improve their sustainability performance, we seek their help in improving our own. Examples include asking suppliers to provide more environmentally friendly products, recycle packaging used to ship materials to our facilities and offer more fuel-efficient transportation services.

In 2016, we created the PPG Supplier Sustainability Award to recognize suppliers that help us meet our sustainability goals and demonstrate industry-leading sustainability and safety cultures that can be adapted within PPG. We began soliciting nominations at the end of the year and will select the winner in 2017.

For more details about our supplier sustainability initiatives and policies, visit our Supplier Sustainability page. »

Supplier Diversity

We believe that our company and communities benefit when we provide equal opportunities for diverse suppliers to compete for our business. As such, we actively seek small businesses and businesses owned by veterans, minorities and women that provide quality products and services at competitive prices.

Supplier collaboration reduces PPG landfilled waste

With tens of thousands of wooden pallets coming into PPG PAINTS™ plants around the world, our global procurement experts worked with preferred suppliers to establish a formal pallet reuse program to further reduce this significant waste stream. In the U.S. alone, the business reused more than 95,000 wooden raw material pallets in 2016, avoiding almost 1,300 metric tons of landfilled waste.

Our procurement team in the Europe, Middle East and Africa region expanded its tote recycling and reuse program in 2016, specifically in Hungary. Locations and suppliers reused more than 60 percent of available totes, with the remaining recycled or scrapped.

PPG connects diverse suppliers with buyers

Representatives from more than 30 minority business enterprises came from Michigan, Ohio and Pennsylvania to a diversity supplier matchmaking event hosted by PPG in Pittsburgh in 2016.

The main goal of the event was to increase our U.S. and Canada expenditures with qualified and certified diverse suppliers across all business units, with a special focus on automotive OEM and architectural coatings.

The event was supported by the Eastern, Michigan and Ohio Minority Supplier Development councils, the Women’s Business Enterprise National Council and the National Veteran Business Development Council.

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