Case study: How Tenneco promotes responsible sourcing
Tenneco is a leading global supplier to original equipment manufacturers and the aftermarket, driving advancements in global mobility in its four segments: Motorparts, Ride Performance, Powertrain, and Clean Air. Tenneco is committed to partnering with suppliers that not only have superior ethical and safety track records but are environmentally responsible. Tweet This!
This case study is based on the 2019 Corporate Social Responsibility and Sustainability Report by Tenneco published on the Global Reporting Initiative Sustainability Disclosure Database 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
Tenneco acknowledges that by working with its supply chain it can indirectly work to make sure sustainability and responsible sourcing are key commitments. In order to promote responsible sourcing Tenneco took action to:
- implement a Code of Conduct
- provide training
- promote supplier compliance
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With this case study you will see:
- Which are the most important impacts (material issues) Tenneco has identified;
- How Tenneco proceeded with stakeholder engagement, and
- What actions were taken by Tenneco to promote responsible sourcing
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What are the material issues the company has identified?
In its 2019 Corporate Social Responsibility and Sustainability Report Tenneco identified a range of material issues, such as anti-corruption and bribery, inclusion and diversity, environmental performance, product safety and quality. Among these, promoting responsible sourcing stands out as a key material issue for Tenneco.
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 Tenneco engages with:
To identify and prioritise material topics Tenneco engaged with its stakeholders through the following channels:
| Stakeholder Group | Method of engagement |
| Team members
| · Town hall and team member meetings, global webcasts, picnics and special events, training and development, and recognition programmes · Euroforum · Corporate Social Responsibility & Sustainability Council · Enterprise Risk Management · Team member engagement surveys |
| Customers
| · Ford’s Partnership for a Cleaner Environment (PACE) programme · Host Customer Technology Days and step-level meeting with customers · Participation in OEM Sustainability initiatives, e.g. BMW Sustainability Training for Suppliers, Scania Sustainability Supplier Day · Participation in Automotive REACH Task Force |
| Investors
| · Annual shareholder meeting · Quarterly webcasts to discuss financial results · Regular participation in global investor and industry conferences · Quarterly/annual Form 10 SEC filings |
| Communities
| · Providing site visits and plant tours, outreach programmes, partnering with local charitable organisations and schools, and environmental stewardship and reforestation projects to communities in which Tenneco’s facilities are located · Many of Tenneco’s US-based locations support United Way and Tenneco’s Southfield, Michigan location provides support through a fundraising campaign |
| Suppliers
| · Participation in Automotive Industry Action Group (AIAG) and European Association of Automotive Suppliers (CLEPA) Sustainability/ CSR Expert Group · Supplier Diversity Programme |
| Government and Regulatory Agencies
| · The Clean Air Division is currently working with the Environmental Protection Agency (EPA) on emissions reduction strategies |
| Trade Associations
| · Tenneco participates and has a seat on the board of directors of the AIAG, and the Automotive Aftermarket Suppliers Association (AASA) · Tenneco is active within the Motor and Equipment Manufacturers Association, the AutoCare Association and Women in Autocare, the Original Equipment Suppliers Association and the Manufacturers of Emissions Controls, European Automotive Suppliers Association |
What actions were taken by Tenneco to promote responsible sourcing?
In its 2019 Corporate Social Responsibility and Sustainability Report Tenneco reports that it took the following actions for promoting responsible sourcing:
- Implementing a Code of Conduct
- Tenneco enforces its commitment to human rights and responsible sourcing in its supply chain through the publication, distribution, and enforcement of rules outlined in its Code of Conduct and Basic Working Conditions Policy, along with its Supplier Manual. These documents detail Tenneco’s supplier expectations to oppose any form of forced or compulsory labour and support zero tolerance of harassment or discrimination against team members in any form. Tenneco’s Basic Working Conditions outlines its policy statements on human rights, including freedom of association. Suppliers are required, as a condition of doing business with Tenneco, to sign-off on the Tenneco Code of Conduct and Supplier Basic Working Conditions. Human rights clauses or human rights screenings are included or performed prior to completing significant investment agreements and contracts. Tenneco’s statements on efforts to prevent slavery and human trafficking are available on its website. Tenneco expects its suppliers to conduct internal audits and self-assessments as a condition of its contracts and uses a supplier management software to manage its suppliers.
- Providing training
- To make sure its policies are communicated to team members, Tenneco conducts internal training related to forced labour and fair working conditions and provides relevant training materials to team members on its intranet site. Furthermore, Tenneco requires that each direct material supplier maintain a training programme concerning Tenneco’s commitment to forced labour and working conditions and encourages all suppliers to take the Automotive Industry Action Group (AIAG) Supply Chain Sustainability Knowledge Assessment and the AIAG Supply Chain Sustainability e-Learning.
- Promoting supplier compliance
- To the extent that ethics or compliance issues are noted in the context of any interaction with a supplier, Tenneco has procedures in place to take appropriate and necessary action to address and resolve such issues. To promote accountability, Tenneco is committed to taking appropriate actions to urgently remediate or discontinue relationships with suppliers and other third parties who fail to meet its standards for lawful and ethical conduct, including prohibitions on the use of forced labour in any of its forms, such as human trafficking and slavery. Tenneco’s Ethics and Compliance Hotline can be accessed through multiple reporting channels and is available to anyone to report any concerns or potential deviations from its expected values. Such reports are promptly investigated, and appropriate actions taken. Tenneco uses risk-based third party due diligence screening and mitigation actions include items such as background checks, contract clauses, training and monitoring.
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
3) Disclosure 408-1 Operations and suppliers at significant risk for incidents of child labor
5) 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 407-1 Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk corresponds to:
- Sustainable Development Goal (SDG) 8: Decent Work and Economic Growth
- Targets: 8.8
Disclosure 408-1 Operations and suppliers at significant risk for incidents of child labor corresponds to:
- Sustainable Development Goal (SDG) 8: Decent Work and Economic Growth
- Targets: 8.7
- Sustainable Development Goal (SDG) 16: Peace, Justice and Strong Institutions
- Targets: 16.2
Disclosure 409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor corresponds to:
- Sustainable Development Goal (SDG) 8: Decent Work and Economic Growth
- Targets: 8.7
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:
1) This case study is based on published information by Tenneco, 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 original on the Global Reporting Initiative’s Sustainability Disclosure Database at the link:
http://database.globalreporting.org/
2) https://www.globalreporting.org/standards/gri-standards-download-center/
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