Responsible procurement

We continue to work closely with our suppliers to create value and continuously improve both our sustainability and their own. Collaborating and innovating with our suppliers is key to achieving our ambition to reduce carbon emissions across the whole value chain (see Carbon emissions in our value chain).

In 2021, we continued to assess and improve our suppliers’ sustainability practices using programs and partners provided by Together for Sustainability (TfS). Since 2019, we’ve lowered our spend threshold from €1 million to €250,000 for our multi-year supplier sustainability risk program.

We have kept suppliers in the sustainability assessment program, even if their spend temporarily dropped below our spend threshold, due to the impact of COVID-19. We also added logistics providers and suppliers in low risk regions, but with significant spend and business impact. As a result, we now have 1,028 suppliers identified for the program (2020: 885), covering 81% of our procurement spend. One focus area that came out of the audits was suppliers’ occupational health and safety, on which we made good progress to improve their performance.

Suppliers in sustainability program

in %

Responsible Procurement – Suppliers in sustainability program (bar chart)

Baseline of 1,028 suppliers (2020: 885). Increase of baseline due to addition of high spend suppliers and logistics providers.

Building on our achievements, we intend to continue increasing the number of suppliers identified for our sustainability program. Our ambition is to have 1,500 suppliers participating in the program by 2025. We’ll also continue to increase buyers’ and suppliers’ capabilities through the new TfS Capability Building program.

We continued to use our existing Supplier Sustainability Balanced Scorecard (SSBS) to collect eco-perfor­mance KPIs (i.e. waste, energy, greenhouse gas emissions) from our suppliers to see if they’re moving in the right direction when it comes to meeting their own sustainability goals. We intend to increase the number of suppliers in our SSBS to 100 over the next few years and will work with them to achieve our SBTi targets (see below).

Pão de Açúcar cable car in Rio de Janeiro (photo)

This is the dramatic Pão de Açúcar cable car in Rio de Janeiro, Brazil, which takes visitors to the top of Sugarloaf Mountain. As part of a “Let’s Colour” project to portray the biodiversity of the surrounding landscape, our Coral brand was used to create colorful paintings of plants and animals on the three cable car stations. Artist Bruno Big used more than 540 liters of paint in 40 different colors, with the art also serving as a means of raising environmental awareness.

In 2021, we informed the top 100 suppliers who contribute to our Scope 3 upstream emissions about our ambition to reduce carbon emissions and invited them to collaborate on our common goal. We followed this up with a survey to evaluate their maturity. We will continue this work during 2022.

Business Partner Code of Conduct

We expect our business partners to follow our core values of safety, integrity and sustainability, as specified in our .

Suppliers sign the code to confirm their compliance with environmental, social, human rights and governance requirements. Signatories cover 99% of the product related (PR) spend and 89% of the non-product related (NPR) spend.

Business Partner Code of Conduct

Explains what we stand for as a company, what we value and how we run our business. It brings our core values of safety, integrity and sustainability to life and shows what they mean in practice.