Hear from our CEO and CSO about our Green Lights Strategy and how it incorporates What We Do
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Our supply chain
Sustainability
Only in close collaboration with our suppliers can we reduce our emissions and optimize our sustainability impacts.
Managing supply chain sustainability
Achieving our near- and long-term Scope 3 emission reduction targets requires close collaboration with our key suppliers and customers. This is why we actively look beyond our own operations, and invite suppliers and customers to join us in developing sustainable solutions and driving continuous improvement.
As our suppliers have a significant impact on our sustainability performance and our ability to achieve our climate goals, we must make sure they act responsibly and comply with our sustainability guidelines.
We do this by building close collaborations and partnerships with our suppliers and ensuring mutual commitments to responsible business conduct and to step-by-step work to reduce carbon footprint along our supply chain.
Our overall goal is a 100% alignment of our global supply chain partners with our responsible sourcing strategy by 2030. Specifically, this means:
- We continuously work to ensure our entire supply base abides by our Supplier Code of Conduct. As of the end of 2024, 84% of our direct suppliers had signed the code, representing 92% of our total global spend across both direct and indirect suppliers. Our Supplier Code of Conduct is an important and mandatory part of our supplier onboarding procedure
- 85% of our raw material suppliers must be assessed and approved by our sustainability rating system
- 100% of our high-risk suppliers are audited on a regular basis
Active direct suppliers
788
How we contribute to supply chain sustainability
We want all our upstream supply chain partners to operate in accordance with the same sustainability standards as we do. In 2024, we had 788 active direct suppliers of raw materials and packaging on five continents. Our key raw materials are sourced from chemical industry suppliers. It is fundamental that we build and maintain long-term relations with all our suppliers, cooperate to achieve better synergies and that we understand, assess and mitigate potential risks.
The importance of resilient and sustainable supply chains
In recent years, our supply chains have been tested by external challenges. While we anticipate continued disruptions, we actively assess where risks occur, evaluate their impact, and develop strategies to manage them effectively.
During the year, we considerably strengthened our data reporting structure and improved our internal response capabilities to support effective decision-making. In 2024, our supply chain efforts focused on reinforcing business continuity by exploring ways to enhance flexibility in our production network and diversify sourcing options for key raw materials, working closely with our valued suppliers to ensure resilient partnerships.
During the year, we considerably strengthened our data reporting structure.
Our three-step process for responsible sourcing
Our ambition is to continuously improve the performance of our suppliers. Assessing our suppliers is essential and the process involves a comprehensive analysis of key factors, including supplier performance, quality control, financial stability, responsiveness, and adherence to our ethical and sustainability standards.
The potential environmental and social risks that we have identified include human and children’s rights, waste management, air, soil and water pollution, and the sourcing of raw materials, resource efficiency and carbon emissions. Assessing suppliers is essential to optimize quality and reliability in our supply chain. Through our “Chain-up!” program, which reflects our responsible sourcing strategy, we ensure a three-step process that helps us to identify, monitor, control and forecast potential hazards at an early stage to mitigate and resolve risks.
Adherence to our Supplier Code of Conduct
We have a collaborative tool to help our sites around the world manage the process locally and monitor the status of every supplier with the help of our Supplier Code of Conduct.
Third-party assessments
Our third-party assessments are conducted by EcoVadis. The sustainability ratings platform covers a broad range of non-financial themes including the environment, labor and human rights, ethics and sustainable procurement impacts. A supplier must score a minimum of 40 points in each of the four themes to receive Beckers’ approval. Those who fail must implement a transparent corrective action plan before being reassessed.
In-house audits
During 2024, we conducted our own in-house audits with three selected key suppliers to verify their compliance with our sustainability and quality expectations. Audited suppliers are selected based on a risk assessment that includes factors such as industry or sector, self-assessment results, length of relationship and previous performance.
Continuous improvements with an annual supplier performance evaluation
To complement the Chain-up! program, we conduct annual performance evaluations of key suppliers. The annual supplier performance evaluations give us a global overview – not only of supply quality but also how supply chain partners score on R&D and sustainability. This tool and process helps us to enhance the overall efficiency and effectiveness of our procurement process. In 2024, our global Supply Chain, Procurement and R&D teams diligently reviewed and assessed 105 key suppliers, accounting for 78% of total direct spend.
Based on the evaluation results, we identified several key suppliers that met or exceeded our sustainability expectations and demonstrated strong performance across multiple criteria, including environmental, social and governance performance, as well as quality and innovation. These suppliers will continue to be an integral part of our supply chain. Additionally, we identified some areas for improvement and initiated dialogues with certain suppliers to address any concerns or issues identified during the evaluation. Our aim is to work collaboratively with them to enhance their performance and strengthen our supplier relationships.
2024 Beckers Supplier Award Winner
We were proud to present the 2024 Beckers Supplier Award to Wanhua Chemical Group in recognition of their outstanding commitment to sustainability. As a key partner since 2018, Wanhua has demonstrated exceptional dedication to environmental responsibility, innovation, and continuous improvement. Their impressive improvement in their EcoVadis score, proactive engagement in sustainability initiatives, and ambitious climate goals make them a deserving recipient of the award.
Stories of
transformation
On the road towards reducing transport emissions by 50%
Our mission to halve transport CO2e emissions by 2030 combines innovation and bold action. With new initiatives and increasing local availability, we are using Hydrotreated Vegetable Oil (HVO) biodiesel and electric trucks (e-trucks) to meet our targets and promote green logistics.
E-trucks provide a zero-emission transport as it eliminates tailpipe emissions and reduces noise pollution. When powered by renewable electricity, they achieve near-zero operational emissions, combining sustainability with energy efficiency and long-term cost savings.
How do we get this on the road?
With a combination of geographical focus and deploying pilots to “fail-fast” and learn, we are already well on the way.
Focus on France and Sweden
With advanced biofuel infrastructure and supportive policies, France and Sweden are spearheading our HVO adoption. Strong local partnerships are leading to good early success.
E-truck pilots in action
Our first e-truck runs a 30-kilometer daily route, transporting goods to a freight hub. It is already earning praise for its quiet, emission-free performance and positive community impact.
Partnering for greener supply chains
Where available at the national level, collaborations with suppliers have accelerated the integration of HVO and the development of multimodal transport solutions. HVO’s compatibility with current fleets ensures seamless expansion, without disturbing our operations.
Tracking progress and tackling challenges
We measure success through two sets of KPIs – our progress toward our long term goals in terms of CO2 reductions and cost efficiency to ensure our sustainability initiatives are viable.
Despite challenges like HVO’s higher cost and limited market availability, innovative approaches and strategic partnerships drive solutions.
The road ahead toward a net-zero future
By 2050, we aim to achieve net-zero logistics with a major target milestone by 2030, to reduce our transport-related emissions by 50% by 2030, compared to 2013. The path will require a full transition to renewable fuels and electric fleets. Furthermore, we want to expand e-truck operations to long-haul routes as battery technology advances. We are also exploring the adoption of emerging technologies like hydrogen fuel cells.
Through collaboration and leadership, we’re building a greener logistics industry—one mile closer to a sustainable future.
WHAT.
For 160 years, we continuously advance the performance and functionality of our high-performance coatings, consistently exceeding customer expectations. Our legacy is defined by the stories of how we help transform our industry.
WE.
People are at the heart of our business. Safety, mental and physical health, and leaving a positive impact in the communities where we operate transcend our business.
DO.
Our operations and work with suppliers improve our environmental and social impact. By working with resource efficiency and responsible procurement, we have a positive effect throughout our value chain.