In 2018, we spent around $9 billion with more than 30,000 suppliers globally, who provided products and services that ranged from raw materials to transporting finished goods. We expect these 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 who 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 use the same criteria to evaluate and monitor our top 100 at-risk global suppliers, and we engage with select suppliers to influence long-term behaviors and reduce risk. We also audit suppliers against specific topics, such as child labor. We are an active member of the RESPONSIBLE MICA INITIATIVE®, which aims to mobilize the supply chain to eradicate child labor in India’s mica mining.
We continuously improve our supplier sustainability programs. In 2018, we began piloting new processes to better assess the qualifications of new suppliers and gauge ongoing or potential future risk with existing suppliers.
Our EMEA 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.
The PPG Supplier Sustainability Award, which is presented on a periodic basis, recognizes suppliers that help us meet our sustainability goals and demonstrate industry-leading sustainability and safety cultures that can be adapted within PPG.
For more details about our supplier sustainability initiatives and policies, visit our Supplier Sustainability page.
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, members of the lesbian, gay, bisexual and transgender (LGBT) community, and women who provide quality products and services at competitive prices.
After benchmarking and performing a gap analysis on our supplier diversity program, we created the One PPG Supplier Diversity Program to consolidate our individual business efforts into a single global program.
Rolled out in 2018, the program is built on four pillars:
- Infrastructure refresh;
- Resources to drive results and behaviors;
- Operationalizing key supplier diversity elements; and
- Effective outreach.
Key achievements in 2018 included developing management metrics, hiring a full-time supplier diversity lead, formalizing a champion network, embedding diverse suppliers into our strategic sourcing process, and participating in national supplier diversity conferences and regional matchmaking events.
Learn more about our Supplier Diversity Program.