Case study: How Nutrien promotes sustainability among its suppliers
Nutrien is the world’s largest provider of crop inputs and services, playing a critical role in helping growers globally increase food production in a sustainable manner. An ethical and reliable supply chain is essential to Nutrien’s risk management strategy, helping Nutrien uphold its company standards for social and labour practices and building resilience to environmental, political or other disruptive events.
This case study is based on the 2021 ESG Report by Nutrien, prepared in accordance with the GRI Standards, that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.
Abstract
Nutrien’s work to build a responsible supply chain includes working with suppliers that uphold its standards Tweet This! and reviewing supplier performance, including human rights protection in Nutrien’s contractual obligations. In order to promote sustainability among its suppliers Nutrien took action to:
- screen suppliers
- conduct ingredient and feedstock evaluations
- implement a Supplier Code
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With this case study you will see:
- Which are the most important impacts (material issues) Nutrien has identified;
- How Nutrien proceeded with stakeholder engagement, and
- What actions were taken by Nutrien to promote sustainability among its suppliers
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What are the material issues the company has identified?
In its 2021 ESG Report Nutrien identified a range of material issues, such as climate-related risks, community relations, cybersecurity and data privacy, water stewardship, worker health and safety. Among these, promoting sustainability among its suppliers stands out as a key material issue for Nutrien.
Stakeholder engagement in accordance with the GRI Standards
The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:
Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.
Key stakeholder groups Nutrien engages with:
| Stakeholder Group |
| Communities |
| Customers |
| Employees |
| Shareholders |
| Society |
| Suppliers |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics Nutrien engaged with its stakeholders through stakeholder surveys.
What actions were taken by Nutrien to promote sustainability among its suppliers?
In its 2021 ESG Report Nutrien reports that it took the following actions for promoting sustainability among its suppliers:
- Screening suppliers
- Nutrien evaluates potential suppliers based on industry, geographic region, government interaction and expected annual spend. Nutrien uses a data-based approach to assign each potential supplier a pre-tier level, allowing for identification of potential risks or benefits in line with its criteria before awarding a contract. Nutrien’s potential top-tier suppliers must complete an onboarding evaluation to meet its basic requirements, including corporate social responsibility and a commitment to excellence in health and environmental practices. These potential suppliers must review and agree to Nutrien’s Supplier Code. Nutrien uses a risk-based approach to identify those suppliers that warrant more detailed reviews. Nutrien’s risk evaluation of potential top-tier suppliers includes financial, cybersecurity, environmental and ethical supply chain ratings to enhance supplier screening.
- Conducting ingredient and feedstock evaluations
- Nutrien only sources active ingredients from suppliers that are certified by the local certifying agency where they are sold and/or distributed (for example, EPA – Environmental Protection Agency – in the US). Active ingredients sourced from non-US sources are purchased only from manufacturers that are EPA approved. Nutrien evaluates new and existing suppliers within and outside the US via a third-party audit of their facilities and processes. Products are tested frequently at Nutrien’s formulation sites to confirm the ingredient or feedstock meets its specifications. Nutrien’s Product Stewardship and Procurement teams work together in a joint feedstock evaluation process to confirm regulatory status, origin and manufacturing quality of materials and chemicals before approval for incorporation into finished products. Nutrien evaluates the integration of raw material sustainability factors in this approval process.
- Implementing a Supplier Code
- Nutrien’s suppliers are required through the contract process to comply with its Supplier Code, which includes expectations for non-discrimination, a commitment to compliance with human rights laws, and the avoidance of forced labour, child labour, and human trafficking. Nutrien does not knowingly procure materials from conflict zones, which is prohibited by its Supplier Code. Commitment by Nutrien’s suppliers to the principles of the Supplier Code is significant in Nutrien’s decision-making process. Where suppliers refuse to follow the principles of the Supplier Code or show signs that they are not committed to improving their practices to comply with its principles, Nutrien will review its relationship with the supplier. Where contractual commitments and local law permit it, this review may include termination of Nutrien’s relationship with the non-compliant supplier.
Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?
The GRI Standards addressed in this case are:
1) Disclosure 308-1 New suppliers that were screened using environmental criteria
2) Disclosure 414-1 New suppliers that were screened using social criteria
Disclosure 308-1 New suppliers that were screened using environmental criteria does not correspond to any SDG.
Disclosure 414-1 New suppliers that were screened using social criteria corresponds to:
- Sustainable Development Goal (SDG) 5: Gender Equality
- Targets: 5.2
- Sustainable Development Goal (SDG) 8: Decent Work and Economic Growth
- Targets: 8.8
- Sustainable Development Goal (SDG) 16: Peace, Justice and Strong Institutions
- Targets: 16.1
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References:
This case study is based on published information by Nutrien, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:
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