What are the material issues the company has identified? 

In its 2021 Sustainability Report First Solar identified a range of material issues, such as ethics and compliance, energy and emissions, circular economy, sustainable products and innovation. Among these, promoting responsible sourcing stands out as a key material issue for First Solar.

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:

“The reporting organization shall identify its stakeholders, and explain how it has responded to their reasonable expectations and interests.”

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 First Solar engages with:

Stakeholder Group	Method of engagement
Employees	·      Training Sessions ·      Meetings ·      Newsletters ·      Surveys ·      Global Webcasts ·      Sustainability Ambassador programme
Customers/ Technical Advisors	·      Meetings ·      Seminars & Conferences ·      Technical Workshops ·      Product Presentations
Investors/ Shareholders	·      Meetings ·      Earnings Calls ·      Analyst Days ·      NSF 457 standard development
Local Communities	·      Meetings & Town Councils ·      Presentations to Community Organisations ·      School Visits ·      Local Tours ·      Training Programmes
Government/ Regulators	·      Meetings & Hearings ·      Conference Presentations ·      Seminars & Workshops ·      Committees ·      Tax Audits
NGOs	·      External Surveys ·      Partnerships ·      Group Meetings ·      Workshops ·      Standards development
Scientific Community	·      Conferences ·      Workshops ·      Meetings ·      Working Groups ·      Technical Seminars ·      Collaboration ·      Peer Reviews ·      Standards development

How stakeholder engagement was made to identify material issues

To identify and prioritise material topics First Solar engaged with its stakeholders through internal and external interviews with associates, management, customers and investors.

What actions were taken by First Solar to promote responsible sourcing?

In its 2021 Sustainability Report First Solar reports that it took the following actions for promoting responsible sourcing:

• Screening suppliers
• All new First Solar suppliers undergo a rigorous qualification process using a balanced scorecard which focuses on Quality, Cost, Flexibility, Service, Technology and Sustainability. First Solar regularly maps its supply base and conducts an assessment to identify potential high-risk suppliers based on industry and geography by using third-party indexes on global slavery, forced labour and other ESG (environmental, social and governance) aspects.

• Promoting compliance
• Under the terms of First Solar’s master supplier contracts, suppliers must represent and warrant that they will not use child, slave, prisoner or any other form of forced or involuntary labour, or engage in abusive employment in the supply of goods or provisions of services. Suppliers are also required to comply with all fair labour standard laws, First Solar’s Code of Conduct and Corporate Policies, as well as the RBA (Responsible Business Alliance) Code of Conduct.

• Auditing suppliers
• First Solar audits new and high-risk suppliers on environmental management, health and safety, labour, human rights, and ethics by leveraging the RBA Code of Conduct as a framework. In 2021, First Solar became a member of the Responsible Business Alliance, which gives it access to their advanced due diligence tools and programmes, and will enable First Solar to conduct third-party audits of potential high-risk suppliers by leveraging their Validated Assessment Programme (VAP) — a leading standard for onsite compliance verification and effective, shareable audits. First Solar also publicly reports on the environmental and social performance of the suppliers it audits in its sustainability report.

• Providing training
• First Solar provides Transparency across Supply Chain training to all associates involved in procurement. The training includes the following objectives: recognising and communicating awareness of human trafficking risks relevant to First Solar’s business; ensuring compliance with the California Transparency in Supply Chains Act (SB 657) and global human rights regulations; and identifying and avoiding trafficked labour in each specific business unit at First Solar.

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 308-2 Negative environmental impacts in the supply chain and actions taken

3) Disclosure 414-1 New suppliers that were screened using social criteria

4) Disclosure 414-2 Negative social impacts in the supply chain and actions taken

 

Disclosure 308-1 New suppliers that were screened using environmental criteria does not correspond to any SDG.

Disclosure 308-2 Negative environmental impacts in the supply chain and actions taken does not correspond to any SDG.

Disclosure 414-1 New suppliers that were screened using social criteria corresponds to:

• ustainable 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

Disclosure 414-2 Negative social impacts in the supply chain and actions taken 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

 

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

• Exclusive FBRH template to begin reporting from day one
• Identify your most important impacts on the Environment, Economy and People
• Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
• Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.
References:

This case study is based on published information by First Solar, 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:

https://www.firstsolar.com/es-CSA/-/media/First-Solar/Sustainability-Documents/FirstSolar_Sustainability-Report_2021.ashx

Note to First Solar: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.

What are the material issues the company has identified?   

In its 2020 Corporate Responsibility & Sustainability Report Atea identified a range of material issues, such as business ethics, customer privacy & data security, climate change, energy. Among these, promoting responsible sourcing stands out as a key material issue for Atea.

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:

“The reporting organization shall identify its stakeholders, and explain how it has responded to their reasonable expectations and interests.”

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 Atea engages with:  

Stakeholder Group

Customers

Employees

Investors

Media

NGOs

Society

Suppliers

How stakeholder engagement was made to identify material issues

To identify and prioritise material topics Atea engaged with its stakeholders through surveys and a number of interviews.

What actions were taken by Atea to promote responsible sourcing?

In its 2020 Corporate Responsibility & Sustainability Report Atea reports that it took the following actions for promoting responsible sourcing:

• Implementing an Assurance Programme
• Atea’s Assurance Programme is the core of its management system. Through this programme, Atea focuses on continuous improvement, industry engagement and partnerships, as well as engagement with its customers. All these steps combined have a ripple effect that influences the whole IT ecosystem in which Atea operates:
  • Atea actively monitored its supply chain for the use of “conflict minerals” from areas where human rights violations may occur.
  • Atea’s employees, suppliers and other external parties are encouraged to report suspected violations of law, the Atea Code of Conduct or Code of Conduct for Suppliers. Such compliance concerns can be related to corruption, fraud, accounting, deficiencies in the internal controls, auditing, environmental, occupational health and safety, human rights, or other matters that could constitute a breach of law, seriously affect Atea’s vital interests or personal health and safety.
  • In 22, 95% of Atea’s suppliers were assessed on their social and environmental impacts in the supply chain.
  • In 22, 24 in-depth assessments of suppliers were performed, either because of specific allegations on how they manage social impacts or issues with transparency and management systems.

• Applying a Supplier Code of Conduct
• Atea’s strategy is embedded in its Code of Conduct, which sets out that its suppliers shall deliver goods manufactured in accordance with the RBA Code of Conduct–the industry standard supported by more than 11 member companies and over 6, suppliers. Atea has adopted the RBA code as its Supplier Code of Conduct. All new suppliers and existing suppliers of commercial relevance are assessed on their compliance with and adherence to the Code. When joining the RBA, Atea also joined the Conflict Free Sourcing Initiative–which is dedicated to auditing and certifying smelters that work with conflict minerals, to strengthen its due diligence and keep abreast progress upstream in its supply chain. Atea assesses its partners against their commitment to uphold the RBA Code in their own operations and supply chain; against the maturity of their management system; and against the level of transparency reached in documenting their efforts. Atea leverages the tools and processes developed by RBA, of which Atea became a member in 216, to facilitate the assessment. Where specific risks are found, suppliers are followed-up through dialogue and documentation gathering. This may involve an assessment of relevant sub-suppliers’ documentation as well as site-visits and audits. A corrective action plan is formulated depending on the severity of eventual issues found. If risk reduction measures were to be found inadequate, or if major breaches against social and ethical demands occur and are not addressed within agreed timeframes, the business relation could be terminated completely.

Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?

The GRI Standards addressed in this case are:

1) Disclosure 38-1 New suppliers that were screened using environmental criteria

2) Disclosure 38-2 Negative environmental impacts in the supply chain and actions taken

3) Disclosure 414-1 New suppliers that were screened using social criteria

4) Disclosure 414-2 Negative social impacts in the supply chain and actions taken

 

Disclosure 38-1 New suppliers that were screened using environmental criteria does not correspond to any SDG.

Disclosure 38-2 Negative environmental impacts in the supply chain and actions taken 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

Disclosure 414-2 Negative social impacts in the supply chain and actions taken 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

What are the material issues the company has identified?            

In its 2020 Sustainable Development Report Smurfit Kappa identified a range of material issues, such as climate change awareness, energy use and emissions, responsible forestry, high-quality and sustainable products, health and safety. Among these, promoting responsible sourcing stands out as a key material issue for Smurfit Kappa.

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:

“The reporting organization shall identify its stakeholders, and explain how it has responded to their reasonable expectations and interests.”

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 Smurfit Kappa engages with:

Stakeholder Group	Method of engagement
Customers	·      Regular business meetings at Smurfit Kappa’s Experience Centres ·      Customer conferences ·      WBCSD membership ·      Awards and competitions run by customers ·      Collaboration through the full packaging value chain in the 4evergreen initiative, in collaboration with large FMCG companies
Investors	·      Investor days and conferences ·      One-to-one meetings ·      ESG ratings by rating agencies ·      Feedback from sustainability analysts ·      Queries directly from investors
Employees	·      MyVoice engagement surveys ·      Global, regional and local learning and development programmes ·      Works Councils ·      Social committees ·      Support to employees through the Employee Assistance Programme ·      Enable reporting of any possible wrongdoing through the Speak Up service
Communities	·      Initiation of and participation in local social activities by members of Smurfit Kappa’s workforce ·      Supporting social investment projects by local Smurfit Kappa companies and Smurfit Kappa Foundations ·      Supporting various local COVID-19 focused projects by local Smurfit Kappa operations
Suppliers	·      Supplier sustainability audits ·      Participating in the development of Forest Certification as members of the Forest Stewardship Council (FSC) and the Programme for the Endorsement of Forest Certification (PEFC) ·      WBCSD membership

How stakeholder engagement was made to identify material issues

To identify and prioritise material topics Smurfit Kappa interviewed external stakeholders (customers, investors and suppliers) and offered an online survey to its own employees.

What actions were taken by Smurfit Kappa to promote responsible sourcing?

In its 2020 Sustainable Development Report Smurfit Kappa reports that it took the following actions for promoting responsible sourcing:

• Promoting compliance
• To meet the requirements of its vision and strategy, Smurfit Kappa’s suppliers must adhere to the Smurfit Kappa Suppliers’ Code of Conduct. Those who do not sign up to it must be committed to a compatible code in compliance with the UN Declaration of Human Rights and the ILO Principles and Rights at Work covering: freedom of association, prohibiting child labour and forced labour, treating employees humanely, working times in accordance with internationally recognised standards, respecting employee contributions, fair compensation with no wage deduction as disciplinary measure, encouragement of continuous training and development, Health and Safety at work, non-discrimination, prohibit harassment, bullying, other unfair practices and promoting community involvement. They will recruit, hire and train without regard to race, colour, gender, sexual orientation, age, religion, creed, national origin, disability or any other legally protected status in the countries where they do business. Smurfit Kappa’s suppliers are also required to follow its Sustainable and Responsible Sourcing Policy, and all other relevant policies which also cover the safeguarding of the natural environment and respecting indigenous peoples and traditional livelihoods. Smurfit Kappa’s suppliers are required to sign a declaration for compliance with its Sustainable and Responsible Sourcing Policy, its Suppliers’ Code of Conduct, its Modern Slavery Act Statement and a Statement on controversial sources of Raw Materials, Goods and Services. These standards should be extended upstream in the suppliers’ supply chain. This declaration is signed every three years and Smurfit Kappa monitors its suppliers’ compliance through its Sustainable and Responsible Sourcing audit programme. 251 suppliers have signed this declaration and 67% of Smurfit Kappa’s suppliers of key materials, representing 77% of the relevant sourcing spend.

• Auditing suppliers
• Since launching its Sustainable and Responsible Sourcing programme in 2010, Smurfit Kappa has been auditing 354 of its suppliers to make sure they meet its standards. Smurfit Kappa also monitors whether suppliers are a member of SEDEX or are assessed on their ethical practices by EcoVadis. Smurfit Kappa believes on-site audits increase competence and commitment in its supplier base, while training and enhancing mutual understanding of key requirements. Based on their scoring at the audit, follow-up programmes are designed on a supplier-by-supplier basis. This includes further strengthening their understanding of, and compliance to, Smurfit Kappa’s Sustainable and Responsible Sourcing principles and indicators. Since 2010, Smurfit Kappa has reduced unsatisfactory scores of strategic suppliers by 75% through improvement plans and follow up. Audits result in a rating against each of the seven sections of Smurfit Kappa’s Sustainable and Responsible Sourcing programme. If the result is below ‘acceptable’ (scoring less than 40%), an obligatory improvement programme is devised. Major non-conformities need to be addressed within two weeks and resolved within six months. Minor non-conformities need to be solved within 12 months during a surveillance audit. Failure to commit to the improvement action list may, ultimately, lead to termination of the business relationship. The supplier assessment is repeated every three years through a re-approval audit process. Smurfit Kappa’s risk mapping, combined with supplier audit results, showed that 81% of its suppliers of key materials audited in 2020 carried moderate to low risk. A total of 94% of all suppliers audited during 2020 scored at least mark ‘acceptable’ (2019: 87%), and the remaining will pass the audit once they complete improvement plans.

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 308-2 Negative environmental impacts in the supply chain and actions taken

3) Disclosure 414-1 New suppliers that were screened using social criteria

4) Disclosure 414-2 Negative social impacts in the supply chain and actions taken

 

Disclosure 308-1 New suppliers that were screened using environmental criteria does not correspond to any SDG.

Disclosure 308-2 Negative environmental impacts in the supply chain and actions taken 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

Disclosure 414-2 Negative social impacts in the supply chain and actions taken 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

 

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

• Exclusive FBRH template to begin reporting from day one
• Identify your most important impacts on the Environment, Economy and People
• Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
• Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.
References:

This case study is based on published information by Smurfit Kappa, 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:

https://www.smurfitkappa.com/-/m/files/publications—global/sustainability-reports/smurfit_kappa_sustainable_development_report_2020.pdf?rev=bb4686e0b49f4e13b0ece77b46f714c7

Note to Smurfit Kappa: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.

What are the material issues the company has identified?

In its 2019 Sustainability Report Elkem identified a range of material issues, such as occupational health and safety, energy efficiency, anti-corruption, diversity and equality, waste management. Among these, promoting responsible sourcing stands out as a key material issue for Elkem.

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:

“The reporting organization shall identify its stakeholders, and explain how it has responded to their reasonable expectations and interests.”

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 Elkem engages with:

Stakeholder Group	Method of engagement
Employees	·      Regular meetings ·      Email/phone dialogue ·      Shift meetings ·      Annual meetings ·      Joint meetings for all ·      Employee satisfaction survey ·      Personal development conversations ·      Training and mentoring ·      Family day/visits at plant ·      EBS training
Customers and suppliers	·      Regular meetings ·      Email/phone dialogue ·      Conferences/ trade shows ·      Visits at plant and visit customers/supplier ·      Audits ·      Technical meetings
Local and national authorities	·      Regular meetings ·      Planned and unplanned inspections/ audits
Corporate management team	·      Monthly/regular meetings ·      Workshops ·      Regular dialogue (phone/email/ meetings) ·      Internal board meetings ·      Reporting ·      Audits ·      Technical and commercial meetings
Local community and organisations (NGOs, clusters, research)	·      Community events ·      Sponsorships ·      Town hall meetings ·      Social events ·      Partnerships
Investors and shareholders	·      Regular meetings ·      Corporate reporting ·      Regular phone/email dialogue
Unions	·      Monthly/ weekly/ regular meetings ·      Labour committee ·      Informal contact / phone /email

How stakeholder engagement was made to identify material issues

To identify and prioritise material topics Elkem surveyed key internal and external stakeholders.

What actions were taken by Elkem to promote responsible sourcing?

In its 2019 Sustainability Report Elkem reports that it took the following actions for promoting responsible sourcing:

• Conducting supplier due diligence
• Elkem’s procurement function is responsible for carrying out pre-qualification and risk assessments of suppliers based on corporate requirements within environment, health and safety, social responsibility, anti-corruption and compliance with laws and regulations. A structured auditing programme is also in place, to make sure all suppliers receive regular audits. Where the risk is identified as high, additional due diligence (integrity due diligence) or on-site audits are required. In 2019, 73% (ex. China) of new suppliers of raw material were screened against environmental and social criteria. For high risk suppliers, additional due diligence was conducted (integrity due diligence). One supplier was excluded based on due diligence findings. In 2020/2021, Elkem is updating its supplier due diligence process, aiming for a harmonised approach to screening using social criteria. All new suppliers will be screened against the topics in the GRI 400 series.

• Implementing a code of conduct for business partners
• In October 2019, Elkem launched a code of conduct for its business partners (“the business partner code”). The business partner code sets out Elkem’s expectations of its suppliers with regards to ethics, labour rights and social and environmental issues. Elkem requires all new suppliers to endorse the business partner code and maintain their commitment throughout the relationship. The business partner code is considered an integral part of any agreement that regulates the relationship between Elkem and a supplier.

• Developing detailed requirements for high risk suppliers
• Elkem has developed detailed requirements for high risk suppliers and contractors regarding health, safety and environmental standards for operations like mining, transportation, storage and loading, and is actively involved in the promotion and monitoring of safe and decent working conditions. This includes health and safety training and providing correct personal protection equipment for suppliers’ employees when necessary. Age control to prevent child labour and ensure responsible working conditions for young employees is also carried out. Elkem requires suppliers and contractors to engage their employees with written contracts on fair terms, and to give them information about their right to organise and collectively bargain with management where this is legally possible. Elkem’s requirements are regularly discussed in meetings with suppliers. High-risk suppliers must document their understanding of legal requirements and hazards in their operations and present plans showing how risk will be eliminated or controlled while working for Elkem. Elkem performs audits and inspections, both in connection with routine visits for quality, technical and business follow-up, and as unannounced site visits. External auditors also conduct supplier audits on Elkem’s behalf. Violations of Elkem’s requirements are registered and addressed with verbal or written warnings in addition to requests for improvements when necessary. Repeated violations may lead to requirements for speedy implementation of improvement plans, financial penalties, or termination of contracts with immediate effect.

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

 

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

• Exclusive FBRH template to begin reporting from day one
• Identify your most important impacts on the Environment, Economy and People
• Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
• Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.
References:

1) This case study is based on published information by Elkem, 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/

Note to Elkem: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.

What are the material issues the company has identified?

In its 2018 Sustainable Development Report Cathay Pacific identified a range of material issues, such as customer safety, biodiversity, resources and waste management, occupational health and safety, employee welfare. Among these, promoting sustainable sourcing stands out as a key material issue for Cathay Pacific.

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:

“The reporting organization shall identify its stakeholders, and explain how it has responded to their reasonable expectations and interests.”

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 Cathay Pacific engages with:

Stakeholder Group

Employees

Customers

NGOs and academia

Investors and shareholders

Suppliers

Other businesses

How stakeholder engagement was made to identify material issues

To identify and prioritise material topics Cathay Pacific engaged with its stakeholders through surveys, focus groups, interviews, publications, websites, social media and face to face meetings.

What actions were taken by Cathay Pacific to promote sustainable sourcing?

In its 2018 Sustainable Development Report Cathay Pacific reports that it took the following actions for promoting sustainable sourcing:

• Implementing a Supply Chain Sustainability Code of Conduct
• Cathay Pacific’s suppliers are required to declare that their products and services comply with its Supply Chain Sustainability Code of Conduct. The CoC describes Cathay Pacific’s minimum environmental and social requirements including:
  • Legal and regulatory compliance
  • Not employing under-age workers/child labour
  • Not employing forced labour
  • Health and safety in the workplace
  • Protection for the environment
  • Provision of proper compensation and appropriate working hours for employees
  • Respect for employee rights and not discriminating against employees
  • Sharing standards with sub-contractors
  • Maintaining high ethical standards
  • Communicating openly and effectively with employees
• This CoC is available internally to Cathay Pacific’s global offices and shared with its suppliers, both locally in Hong Kong and to those based in the rest of the world. Cathay Pacific actively works with suppliers who share its standards and manages risks related to its supply chain through continuous collaboration with its suppliers in accordance to this CoC. In the event that a supplier has fallen short of the requirements, Cathay Pacific reviews the relationship and shortfall on a case by case basis and proceeds accordingly. Cathay Pacific has also developed a balance-rated scorecard for procurement to measure suppliers’ performance in six different areas: Costs, Innovation, Satisfaction, Quality, Assurance of supply and Sustainability.

• Sourcing sustainable seafood
• According to World Wide Fund (WWF) Hong Kong, about 90% of commercially important fisheries are either fully or over-exploited globally. While awareness on choosing sustainable seafood to adopt responsible and sustainable practices has increased over the years, fish stocks remain threatened and some are on the verge of collapse. As a company that regularly serves fish to its customers and staff Cathay Pacific has been proactively addressing this challenge through responsible sourcing for almost a decade. Cathay Pacific is a corporate member of WWF and shares the same values and approach in sourcing certified sustainable seafood on selected routes. Since 2010, the food served to Cathay Pacific’s Economy Class passengers on its flights from European ports has come from sustainable sources, such as those certified by the Marine Stewardship Council (MSC). Recognising the need to conserve certain species that are endangered due to the problem of overfishing, Cathay Pacific established its internal Sustainable Food Policy in 2011 to provide guidance for its purchasing decisions. Cathay Pacific opts out of purchasing specific unsustainable food items and asks for information with regards to where the food was originally sourced. In 2018, Cathay Pacific Catering Services (CPCS) purchased a total of 417 tonnes of certified sustainable seafood to protect the marine ecosystem, a 8% increase from 2017. It is also Cathay Pacific’s corporate policy not to serve shark fin soup either inflight, at Cathay Pacific City, Cathay Dragon House or at any corporate events or meals which are organised or subsidised by the company.

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

 

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

• Exclusive FBRH template to begin reporting from day one
• Identify your most important impacts on the Environment, Economy and People
• Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
• Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.
References:

1) This case study is based on published information by Cathay Pacific, 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/

Note to Cathay Pacific: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.

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:

“The reporting organization shall identify its stakeholders, and explain how it has responded to their reasonable expectations and interests.”

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

2) Disclosure 407-1 Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk

3) Disclosure 408-1 Operations and suppliers at significant risk for incidents of child labor

4) Disclosure 409-1 Operations and suppliers at significant risk for incidents of forced or compulsory 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

 

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

• Exclusive FBRH template to begin reporting from day one
• Identify your most important impacts on the Environment, Economy and People
• Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
• Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.
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/

Note to Tenneco: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.

What are the material issues the company has identified?

In its 2019 Sustainability Report IndoAgri identified a range of material issues, such as deforestation and land management, environmental impacts and compliance, occupational health and safety, product quality and safety, smallholder engagement and livelihoods, human rights. Among these, promoting responsible sourcing stands out as a key material issue for IndoAgri.

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:

“The reporting organization shall identify its stakeholders, and explain how it has responded to their reasonable expectations and interests.”

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 IndoAgri engages with:

To identify and prioritise material topics IndoAgri engaged with its stakeholders through the following channels:

Stakeholder Group	Method of engagement
Shareholders, investor and bankers	·      Meetings ·      Surveys
Customers and consumers	·      For new customers: ·      Surveys ·      Approach and product trials ·      For existing customers: ·      Regular visit/ meeting, ·      Bakers forum ·      Customer gathering ·      Customer support line
CPO Suppliers	·      Surveys ·      Audits ·      One-to-one meetings
Local Suppliers	·      Technical assistance to local businesses on construction of civil projects
Government and Regulators	·      Public forums and regular meetings
Non-Governmental Groups	·      RSPO process meetings ·      Other NGO meetings e.g. IDH ·      Local multi-stakeholders initiatives
Employees	·      Training sessions ·      Dialogue with unions ·      Grievance/whistle-blowing processes
Smallholders (FFB Supplier)	·      Development of platforms and projects on socialisation ·      Plasma assistants
Local Community	·      Regular feedback and awareness meetings ·      Forums for grievance & resolution ·      Other ad hoc engagements

What actions were taken by IndoAgri to promote responsible sourcing?

In its 2019 Sustainability Report IndoAgri reports that it took the following actions for promoting responsible sourcing:

• Achieving ISPO certification
• Developed by the Indonesian Government, the Indonesian Sustainable Palm Oil certification system (ISPO) is a mandatory certification for all oil palm growers in the country. ISPO aims to cultivate a sustainable plantation industry, and in the process contribute to the Indonesian Government’s commitments to reduce GHG. Independent smallholders are currently exempt from ISPO, but the Government plans to make participation mandatory in the future. To register for ISPO certification, palm oil companies have to first pass a Plantation Business Assessment, Penilaian Usaha Perkebunan (PUP) administered by the Regional Plantation Estates Office to ensure that the company’s operations have implemented ISPO requirements. The ISPO audit is conducted by a government approved certification body in two stages; the first stage is a compliance audit of plantation licenses and required business documentation, and the second stage is plantation audit and assessments. IndoAgri’s ISPO-certified production in 2019 was 503,000 tonnes, representing 71% of its nucleus CPO (Crude Palm Oil) production. All of IndoAgri’s plantations have been registered for ISPO certification, out of which 80% have been certified and audited.

• Implementing a Sustainable Agriculture Policy
• IndoAgri’s Sustainable Agriculture Policy commits it to traceable palm oil that ensures:
  • no deforestation,
  • preservation of HCV (High Conservation Value) areas and HCS (High Carbon Stock) forests,
  • no planting on peat regardless of depth,
  • no burning,
  • respect for labour and human rights,
  • Free Prior and Informed Consent (FPIC).
• IndoAgri conducts annual audits on its plantations, including its plasma smallholders, to ensure 100% compliance with its Policy. Additionally, all IndoAgri and third-party CPO suppliers must formally accept IndoAgri’s Sustainable Agriculture Policy and Supplier Guidelines. IndoAgri regularly assesses risk levels of all its own mills on an annual basis as part of its risk management and audit process. For third-party suppliers, IndoAgri tracks their names, parent company, ownership structure, scale of operations, and location coordinates. IndoAgri also regularly engages with them to ensure compliance with its Policy. Major findings and recommendations will be communicated and followed-up and IndoAgri will cease supplies from uncooperative and non-complying third-party mills. In 2019, IndoAgri ceased sourcing from one supplier due to non-compliance with its Policy. In 2019, 75% of CPO volume from suppliers complied with IndoAgri’s Sustainable Agriculture Policy.

• Assessing suppliers
• In 2019, IndoAgri conducted 191 visits, workshops, and audits on 100% of its mills and their supplying estates. Besides compliance to its Policy, IndoAgri’s assessments also focus on:
  • agronomy (good agricultural practices, yield, soil health, crop protection),
  • responsible operations (safety, biodiversity, peatland, fire risk, human rights, community engagement, FPIC),
  • efficiency of operations (energy and water consumption, GHG emissions, waste production), and
  • compliance with government regulations and ISPO certifications.
• Additionally, IndoAgri reports its human rights assessments based on its ISPO certification achievements. As such, 80% of IndoAgri’s operational units have been formally assessed for human rights risk as of 2019.

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

 

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

• Exclusive FBRH template to begin reporting from day one
• Identify your most important impacts on the Environment, Economy and People
• Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
• Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.
References:

1) This case study is based on published information by IndoAgri, 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/

Note to IndoAgri: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.

What are the material issues the company has identified?

In its 2019 Sustainability Report Huhtamaki identified a range of material issues, such as anti-corruption and ethics, materials and product lifecycle, human rights, occupational health and safety. Among these, promoting responsible sourcing stands out as a key material issue for Huhtamaki.

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:

“The reporting organization shall identify its stakeholders, and explain how it has responded to their reasonable expectations and interests.”

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 Huhtamaki engages with:

Stakeholder Group

Customers

Suppliers

Employees and contingent workers

Shareholders

Investors

Consumers

Industry associations

Public authorities

Non-Governmental Organisations

Trade unions

Communities near manufacturing units

Media

How stakeholder engagement was made to identify material issues

To identify and prioritise material topics Huhtamaki engaged with its stakeholders through surveys sent to relevant external and internal stakeholders.

What actions were taken by Huhtamaki to promote responsible sourcing?

In its 2019 Sustainability Report Huhtamaki reports that it took the following actions for promoting responsible sourcing:

• Updating the Code of Conduct for Huhtamaki suppliers
• During previous years, Huhtamaki noticed that the content of the Code of Conduct for Huhtamaki Suppliers wasn’t always easy for all suppliers to understand. The document was long and only available in English. For this reason, Huhtamaki updated the Code of Conduct for Huhtamaki Suppliers in 2019, reviewing the requirements to check that all necessary topics were included. Huhtamaki also changed the layout to a more user-friendly format. Finally, Huhtamaki translated the document into those languages most relevant for Huhtamaki and published the documents on its website. The Code of Conduct for Huhtamaki Suppliers sets out what Huhtamaki expects its suppliers to comply with. It covers topics related to business ethics, social responsibility, and environmental responsibility. For key suppliers, monitoring the acknowledgement level is carried out through the NAVEX RiskRate tool. For other suppliers, monitoring is done at the unit level. Huhtamaki’s suppliers are also responsible for their subcontractors’ compliance with the requirements. Huhtamaki also provides suppliers with the opportunity to share their own Code of Conduct with it. If their own Code of Conduct fulfills the requirements of Huhtamaki, it is possible for Huhtamaki to accept it as a substitute. Huhtamaki’s suppliers and workers in the value chains can report any violations of the Code of Conduct for Huhtamaki Suppliers or other Huhtamaki policies via Huhtamaki’s global whistleblowing system, the Huhtamaki Speak Up channel.

• Screening suppliers
• One key element of Huhtamaki’s due diligence processes is the use of the NAVEX RiskRate tool. All key suppliers will be screened in RiskRate against sanction lists, watchlists, Politically Exposed Persons lists and adverse media. The screening continues for as long as the supplier is an active key supplier for Huhtamaki. If there are any matches in the abovementioned lists, RiskRate will automatically alert Huhtamaki with more case details. Based on the suppliers’ initial profile risk level, they will also be sent a questionnaire. All suppliers will be asked to acknowledge compliance with the updated Code of Conduct for Huhtamaki Suppliers. Medium-risk suppliers will also be asked questions that assess the risk of corruption and compliance with law. High-risk suppliers will additionally receive questions about sanctions as well as ethics and compliance. Huhtamaki has defined risk scorings for the questions and, if necessary, each questionnaire answer is checked individually to determine whether further actions or explanations are required from the supplier. Both the screening results and the answers to the questionnaire are combined to the final risk rating of the supplier. This final risk rating again uses a three-level system: low, medium or high risk. Huhtamaki has defined internal processes for the review and approval of the results, which vary depending on the severity of the case.

• Increasing the amount of audited suppliers
• Huhtamaki is a corporate member of Sedex, a non-profit membership organisation and world-leading ethical trade service provider that works to improve ethical performance in global supply chains. In 2019, Huhtamaki collected all individual accounts of its manufacturing units under a common Huhtamäki Oyj account. Focus was especially on learning to use the different tools that Sedex provides. In 2020, Huhtamaki started putting these tools into further use in its supplier monitoring. Huhtamaki conducts audits of its suppliers regularly, focusing especially on quality. Nevertheless, it wants to increase the number of third-party corporate responsibility audits conducted in order to make sure it gains an objective view on suppliers’ ethical, social and environmental performance. Huhtamaki will start identifying the suppliers who should have such audits based on certain attributes, such as their location and supplier category, concentrating first on key suppliers. Currently, Huhtamaki accepts the following audits from suppliers: SMETA 4-pillar audit, Business Social Compliance Initiative (BSCI) audit, SA8000 certification and Aluminium Stewardship Initiative (ASI) certification. The acceptable audits are reviewed regularly to check if new ones are added, or if old ones no longer fulfil Huhtamaki’s requirements. Huhtamaki will monitor the audit results and corrective actions and support suppliers to improve their performance, if needed. Sedex provides many useful training materials that Huhtamaki will use to educate suppliers. Suppliers will also be asked to fill in the Sedex Self-Assessment Questionnaire, which supplements the information gathered from audits.

• Using certified and recycled fiber to ensure sustainable forest management
• Huhtamaki wants to advance sustainable management of all forest types. This is why it uses virgin fiber that comes from sources that are certified by such organisations as the Forest Stewardship Council (FSC®), the Programme for the Endorsement of Forest Certification (PEFC) and the Sustainable Forest Initiative (SFI®). These certification schemes ensure that forests are not used excessively and new trees are planted for every tree cut, allowing the forests to regenerate. These certification systems also take the social aspect of forest management into account to some extent. In addition to virgin fiber, which is used for packaging with direct food contact, Huhtamaki uses recycled fibers. These recycled fibers are either post-industrial or post-consumer, including cutting waste from Huhtamaki’s own paper cup manufacturing. By the end of the year 2019, more than 98% of the fiber used met these criteria.

Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?

The GRI Standards addressed in this case are:

1) Disclosure 414-1 New suppliers that were screened using social criteria

2) Disclosure 414-2 Negative social impacts in the supply chain and actions taken

 

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

Disclosure 414-2 Negative social impacts in the supply chain and actions taken 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

 

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

• Exclusive FBRH template to begin reporting from day one
• Identify your most important impacts on the Environment, Economy and People
• Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
• Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.
 

References:

1) This case study is based on published information by Huhtamaki, 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/

Note to Huhtamaki: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.

What are the material issues the company has identified?

In its 2019 Annual and Sustainability Report Epiroc identified a range of material issues, such as product safety, crisis management, employee care and empowerment, product eco efficiency. Among these, promoting responsible sourcing stands out as a key material issue for Epiroc.

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:

“The reporting organization shall identify its stakeholders, and explain how it has responded to their reasonable expectations and interests.”

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 Epiroc engages with:

To identify and prioritise material topics Epiroc engaged with its stakeholders through the following channels:

Stakeholder Group	Method of engagement
Customers	·      Meetings ·      Interaction via customer centres as well as joint projects ·      Exhibitions ·      Customer surveys ·      Materiality assessment
Employees	·      Workplace meetings ·      Management meetings ·      Internal councils ·      Employee surveys ·      Performance review ·      Trade unions and other cooperation councils ·      Employee engagements ·      Materiality assessment
Shareholders	·      Investors and analysts’ meetings ·      Capital Market Days ·      Website ·      Annual and sustainability report ·      Questionnaires and surveys ·      Materiality assessment
Business partners	·      Business partners evaluations and audits ·      Procurements ·      Meetings ·      Materiality assessment ·      Joint projects ·      Development projects
Society	·      Meetings ·      Stakeholder dialogues ·      Participation in industry groups ·      Research projects ·      Materiality assessment ·      Collaboration with academia and governments ·      Interaction with industry peers

What actions were taken by Epiroc to promote responsible sourcing?

In its 2019 Annual and Sustainability Report Epiroc reports that it took the following actions for promoting responsible sourcing:

• Implementing a Code of Conduct
• Suppliers, agents, resellers and distributors are required to comply with Epiroc’s Code of Conduct (CoC), international standards and applicable regulations. Based on the CoC, the Epiroc Business Partner Criteria summarises ten criteria that clarify expectations for actors Epiroc chooses to do business with. All significant suppliers, agents, resellers and distributors must confirm their commitment to the CoC and Business Partner Criteria Letter. Epiroc monitors and follows up on their compliance on a regular basis, through surveys and audits.

• Conducting supplier audits
• Epiroc focuses its efforts on suppliers that represent the main spending and suppliers with operations in markets with the highest risk of corruption and human rights violations. These suppliers are defined as “Significant Suppliers”. Epiroc has about 1,406 significant suppliers, of which approximately 200 are located in geographical locations deemed as high risk. Although self-assessments are the primary compliance tool for suppliers, Epiroc conducts on-site audits of selected suppliers every fifth year and, in 2019, performed 159 of these audits. Of suppliers audited for safety, health, environment, business ethics and human rights, 95% were approved. Epiroc also reviews its business relationships when detecting violations. In these cases, business partners are immediately requested to adapt or change to meet Epiroc’s criteria and establish an action plan for complying with the criteria. Another condition for doing business with Epiroc is that its business partners must allow Epiroc to perform audits.

• Implementing the supply-chain improvement programme
• With its supply-chain improvement programme Epiroc seeks to source more from suppliers located closer to its markets, thereby better serving customers and adding value locally, while reducing its CO2 footprint. To this end, Epiroc is also increasing use of sea freight. Epiroc is also building its internal audit capability by introducing a single enterprise resource-planning system. This will improve information sharing on how Epiroc’s suppliers meet its expectations across the company.

• Conducting human rights due diligence
• During 2019, Epiroc launched its Responsible Sales Assessment process, which includes a human rights due diligence. Its purpose is to better understand potential risks with regards to human rights, corruption and environment in markets and industries where Epiroc is present, and to find mitigating measures. An important part of the assessment is to identify criteria for determining when a responsible business assessment is required. The identified criteria are:
  • Country – a third-party risk analytics firm is used to rank countries according to risks, such as different labour standards, impacts on land rights and indigenous people and corruption
  • Customer – type of customer and project
• The tool was developed during 2018 and was tested in 2019 in four pilot countries. During 2019, a policy, a tool, and e-learning training on Responsible Sales Assessments were launched.

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 412-1 Operations that have been subject to human rights reviews or impact assessments

3) Disclosure 414-1 New suppliers that were screened using social criteria

4) Disclosure 414-2 Negative social impacts in the supply chain and actions taken

 

Disclosure 308-1 New suppliers that were screened using environmental criteria does not correspond to any SDG.

Disclosure 412-1 Operations that have been subject to human rights reviews or impact assessments 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

Disclosure 414-2 Negative social impacts in the supply chain and actions taken 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

 

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

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References:

1) This case study is based on published information by Epiroc, 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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