Joint audits to improve sustainability standards
At Henkel, we assess our suppliers in a comprehensive process that also covers sustainability performance and risks. The systematic expansion of our audit programs for suppliers is thus a key priority for the coming years. In this regard, we aim not only to increase the number of supplier audits conducted, but to improve their transparency and efficiency and help to establish common standards across companies.
Exchanging existing audit results between companies is an important step toward improving sustainability standards in the supply chain and is the guiding principle of the “Together for Sustainability” initiative that was launched in 2012. Working in collaboration with five other companies in the chemical industry, Henkel’s goal in this initiative is to standardize the assessment of sustainability and the audit criteria for the largely shared suppliers. Besides social standards, the audit scope also includes environmental standards.
The first pilot audits took place in China in 2012 at suppliers of our three business sectors. We post the results of the supplier assessments on a joint, web-based platform. The audit reports are thus available to all member companies and can be recognized by all – in line with the motto: “An audit for one is an audit for all.”
Collaborating for sustainability
The systematic expansion of the audit program for suppliers will be the main focus of our work in the coming years. In 2012, Henkel and five other companies in the chemical industry established an initiative entitled “Together for Sustainability – The Chemical Initiative for Sustainable Supply Chains.” It is based on the principles of the United Nations Global Compact and the Responsible Care Initiative of the International Council of Chemical Associations (ICCA). The Initiative’s aim is to harmonize the increasingly complex supply chain management processes and to optimize the dialogue between worldwide business partners. Above all, synergies are to be created and exploited, so that resources can be used more efficiently and with a minimum of administrative effort, not only among the six member companies but with all of our shared suppliers. At the heart of the Initiative is the idea: “An audit for one is an audit for all.” In the future, suppliers will only need to perform one self-assessment or audit. The results of the report will then be shared among the members of the Initiative. The Initiative is managed by the chief purchasing officers of the member companies. Supervision by external antitrust attorneys ensures that no conflicts occur in regard to competition legislation.