Creating a sustainable supply chain
A significant part of the environmental and social impact in our value chain is upstream of our own operations. To safeguard an overall positive environmental and social impact of our biobased products, we need to ensure our raw materials are sourced responsibly.
Our responsible sourcing strategy focuses on our agricultural raw materials, which are the basis for our biobased solutions. A sustainable agricultural supply chain is essential for the communities in which we operate, as well as for our business. We focus on sugar cane, soy, corn, wheat, and palm oil, which represent some 90% of our agricultural raw materials by quantity. Corbion is not directly involved in the growing, harvesting, and processing of these crops. We therefore focus our efforts on our tier-1 suppliers, requiring them to implement sustainable practices further up the supply chain.
Security of supply
Our security-of-supply assessment evaluates raw materials on three pillars: supply, quality and food safety, and sustainability. For each pillar, several criteria are rated to estimate the risk of supply issues. The business impact of a supply issue is taken into account to determine the overall score. The risk assessment results in a high, medium or low score for each pillar per raw material. All product-related raw materials have been evaluated for the first time in 2016 and will be re-assessed annually. For high risk-raw materials, mitigation plans have been developed and are being implemented. Mitigation actions range from the recruitment of new suppliers to supplier visits to perform a more detailed risk assessment.
Our supplier code defines what Corbion expects from its suppliers in terms of meeting our responsible sourcing commitment. The code includes principles and criteria for business ethics, human rights and labor conditions, and environmental practices. We require our suppliers to sign our supplier code for confirmation.
Cane sugar code
Our cane sugar code is an extension of our supplier code which includes additional principles and criteria relating to land rights, good agricultural practices, and biodiversity. It is based on the definitions for sustainable sugar cane and derived products as set out by Bonsucro, a global non-profit, multi-stakeholder organization founded by WWF in 2005 to advance more economically, environmentally, and socially responsible sugar production. If our direct suppliers are not involved in sugar cane farming, we expect them to implement the farming-related principles with the farmers they source from.
Possible non-compliances with these codes will be investigated and discussed with the supplier. If deemed necessary, the supplier is expected to implement a corrective action plan to effectively and promptly resolve the issue, with an agreed timeline. If the issue persists, Corbion may ultimately decide to terminate the relationship with the supplier in question.
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