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Our value chain

From the sourcing of raw materials to the production of our paints to their application – we take responsibility for sustainability issues along our product value chain.

GRI 2–6, 2–24

We have assessed the sustainability impact at each stage of our product value chain – from sourcing raw materials to the end of product life. Next, we defined actions to efficiently manage the identified challenges and to benefit from future opportunities.

open_in_newFind here detailed information about our value chain.

  1. Raw Materials: To manufacture our paint and coatings, we mainly use fossil and mineral raw materials
  2. Production: We manufacture our paints and coatings at 23 production sites in 17 countries
  3. Packaging & Distribution: In 2021, 25% of our carbon emissions were caused by inbound third-party deliveries and 26% were caused by outbound third-party deliveries
  4. Customers’ Production: Customers apply our coatings on their products
  5. Use of Final Products: We offer coatings for buildings, domestic appliances, core plates, vehicles and heavy-duty machinery, and consumer goods like smartphones and notebooks
  6. End of Product Life: Our coatings can prolong the life of end products, with little or no maintenance; prepainted steel and aluminum can be recycled without losing quality and original performance qualities

Our supply chain

In 2021, we had 897 active direct suppliers for raw materials and packaging. Of these, 47 suppliers account for 70 percent of the purchasing costs. Our key raw materials come from fine chemical industry suppliers and with all of them we have long-term relations focused on joint development. A challenge is the limited number of suppliers for certain raw materials.

Driving sustainability through our supply chain

At Beckers, we take a holistic value chain approach to sustainability and we are committed to building strong partnerships with our key suppliers. Our suppliers have a significant impact on our performance, so it is important that we monitor and evaluate them too. Our goal is for 100 percent of our supply chain partners globally to be aligned with our responsible sourcing strategy by 2030. We use a three-step process to monitor the social and environmental sustainability of all our suppliers and empower them to improve their performance. Furthermore, sustainable behavior is encouraged through oureast Beckers Supplier Award which has been awarded to suppliers since 2019.

Chain-up! Our three-step process for responsible sourcing

Step 1: Sign and adhere to the Supplier Code of Conduct

We introduced ouropen_in_new Supplier Code of Conduct in 2017. It is essential we have an effective way to manage our suppliers that support us at different locations around the world. To do this, we use a collaborative tool which helps our sites manage the process locally and monitor the status of every single supplier. Our target is to cover 90% of the total external purchases.

Step 2: Conduct third-party assessments

We ask all our key suppliers to conduct EcoVadis assessments. EcoVadis is a global provider of sustainability ratings. Its ratings cover a broad range of non-financial management systems including environmental, labor and human rights, ethics, and sustainability procurement impacts. These are rated via in-depth assessments that require suppliers to provide proof for each of their claims. A supplier must score a minimum of 40 points in each of the four segments of the assessment to achieve Beckers approval. Those who fail must work through a transparent corrective action plan towards a reassessment. This process allows us to take our suppliers with us as we move our industry in the right direction. By 2030, 80% of all direct material purchases should be covered by approved suppliers globally.

Step 3: Conduct in-house audits

We conduct our own in-house audits on selected key suppliers to verify their compliance with our Corporate Social Responsibility and quality expectations. Our procurement team selects suppliers to audit based on a risk assessment that includes factors such as geographic location, industry or sector, self-assessment results, length of relationship and previous performance. We work together with the audited supplier to improve quality control and sustainability performance, share proposals for improvement and request action plans within a specific time period. This approach has brought about remarkable improvements. Our annual target is to audit two suppliers per year.

Read more about our progress with the Chain-up! program in 2021east here.

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