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. »