GRI 414: Supplier social assessment
Explanation of the material topic and its boundary
Respect for human rights is an essential guide to the right way to of doing business and our expectations of business integrity also extend to our suppliers. Givaudan treats Supplier social assessment through its material topics Human rights and Responsible sourcing.
We ensure that Givaudan respects human rights by acting with due diligence, as defined in the UN Guiding Principles for Business and Human Rights. A commitment to high ethical standards, as well as transparency and honesty in our dealings with customers, suppliers, employees and the communities where we operate, enables us to grow responsibly and share our success. We work with suppliers to help them adhere to the same principles.
By expanding our responsible sourcing initiatives, we are able to reduce our environmental and social impact. Our sourcing strategy also helps to mitigate the risks inherent in our complex supply chains. Suppliers are expected to maintain the highest degree of integrity as described in our Responsible Sourcing Policy.
We aim to ensure that all main direct suppliers comply with our Responsible Sourcing Policy and our target is to have all of them reach full compliance with their audits by 2020.
Our Procurement team and implementation partners work closely with these suppliers to guide them through the Responsible Sourcing Policy, identify gaps, agree on remediation plans and prepare for the audit. So far, we have sent the Responsible Sourcing Policy to 14,028 of our raw material and indirect materials & services (IM&S) suppliers, representing 87% of our total spend for 2019.
Most direct raw material suppliers sites are audited according to Sedex Members Ethical Trade Audit (SMETA), one of the most widespread ethical audit formats in the world, or by an equivalent protocol that can be used instead. Auditing suppliers accordingly allows them to benefit from a mutual recognition agreement among the members of the AIM-PROGRESS platform: they can avoid audit duplication because suppliers are encouraged to share audit reports with the largest number of customers. In 2014, we started to include our indirect materials and services suppliers in the Sedex initiative and to date, 25 such suppliers have joined Sedex.
We also aim to ensure that 90% of our raw materials volume of natural origin is responsibly sourced by 2020.
We work together with partners and suppliers to increase transparency in our supply chains and improve their sustainability practices. We source a wide variety of raw materials, often from various suppliers through multiple supply chains. In order to better understand the origin of raw materials we map supply chains beyond our direct suppliers.
This creates the transparency we need to assess whether or not practices throughout the supply chains meet our Responsible Sourcing Policy requirements. Our aim is to source these raw materials responsibly by either identifying existing best practices or by reaching agreements with our suppliers on improvement plans to close gaps in relation to our policy. For raw materials sourced in several countries through multiple supply chains, we carry out assessments gradually over time. This continuously increases our responsible sourcing coverage in volume, and means that some raw material categories are partially covered.
By the end of 2019 we were mapping 50 raw material categories and were sourcing 33 raw material categories in a responsible way.