OPTIMISING SUSTAINABILITY ACROSS OUR SUPPLY CHAIN
Rising pressures on the environment and society have significant impacts on our supply chains. Our supply chains are complex, global and vulnerable to natural disasters, water scarcity and poor labour conditions in much of the world.
A particular risk is the declining availability of natural fragrance ingredients due to unsustainable farming and supply disruption (a result of climate change). With a growing population, ingredients sourced from food items will continue to become scarcer. It is important to manage natural ingredient sourcing responsibly; a variety of issues need to be considered, from sudden climatic changes to political or economic problems.
Natural doesn’t always mean more sustainable. Synthetic alternatives, when managed responsibly, can reduce many of the risks associated with naturals.Modern chemistry can strive towards waste reduction and recycling, cleaner and more streamlined processes to improve yields and helping to reduce or eliminate potentially harmful by-products.
We source a large number of materials from a variety of suppliers and managing supply chains at this scale is complex. We are committed to ensuring our ingredients are responsibly sourced to secure a stable, sustainable supply. In addition, we are committed to working with as many of our suppliers as possible for greater transparency and to improve safety, environmental, social and business integrity practices across the board.
To mitigate the risks within our supply chain, we have a secondary source for many ingredients. This allows flexibility in supply but through our stringent assessments ensure the expectation of quality is still be met.
Our global purchasing team is responsible for buying all our natural and synthetic fragrance ingredients. We must ensure continuous supply of materials, meeting our quality expectations, at competitive and consistent costs. Our buyers are essential to our ability to satisfy customer requirements, and as such must be able to adapt to rapidly changing environments and markets.
There is a growing demand for sustainable and ethically responsible products and we are taking actions to identify sustainable sources of raw materials, diversify supply, collaborate with suppliers to sustainably farm natural materials and investigate sustainable synthetic alternatives, making us more resilient to change. In addition, where we are able, we are focusing on sources local to our operations.
In 2018, 26% of our raw materials were sourced from local suppliers. We are working to increase this number where possible, including direct supply where available. However, due to the nature of the materials we use, we are restricted in what we can achieve.
CPL are committed to working with suppliers who have strong business ethics, respect people and understand the need to preserve the environment. We have formed a team tasked with helping out suppliers to achieve high standards in these areas. In order to deliver on our responsible sourcing commitments, we are conducting audits of our main direct raw material suppliers. This requires a clear articulation of CPL’s definition of ‘responsible sourcing’ and as such we are finalising our new ‘Responsible Sourcing and Partnerships policy’ to be published by 2020. This will define a consistent set of standards and requirements in health and safety, social, environmental and business integrity practices.
Partnership lies at the heart of our approach and is the key to developing successful relationships with our suppliers. The road to responsible sourcing is a process of continuous improvement.
Our Responsible Sourcing and Partnerships policy will form the basis by which we will assess suppliers for their commitment to sustainability. Through an assessment program, starting with key suppliers, we will evaluate our supply chains and drive compliance with defined standards in environmental protection, health & safety, social responsibility and business integrity. The requirements will apply to everyone in our supply chains.
The implementation of such a comprehensive policy across a global network of suppliers is an enormous task, but we view this as an opportunity to drive positive transformation in supply chain. Our objective is to assess 100% of our raw material suppliers to this policy by 2030.
SUSTAINABLE PURCHASING AGREEMENTS
We work in conjunction with our suppliers and wherever possible work with them to switch to greener methods of production, to make life safer for their employees and improve fairness and social responsibility. This helps to promote the creation of shared value for our customers, suppliers and all who participate in producing our raw materials. We have set an objective to develop robust sustainable purchasing agreements for 20% of our natural ingredients by 2030.
We have sustainable agreements in place for 4 natural materials; Sri Lankan Black Pepper and Sandalwood, Indian Davana and Rwandan Patchouli Oil. We are creating a sustainable supply chain, working with and investing in farmers, promoting sustainable farming practices, and conducting rigorous vendor quality management ensures that the product meets our expectations whilst being fully sustainable and traceable. By developing trust and working in partnership with the producers, we can source for shared value and generate benefits for our customers and all the participants in the supply chain.
This work continues, and the Purchasing team are working to generate more shared value with the farmers, to help us to protect our supply chain and ensure we meet the sustainable expectations of today’s consumer.