Home' Nufarm Annual Report : Nufarm Sustainability Report 2017 Contents Nufarm recognises that our social
and environmental responsibilities
extend beyond our own manufacturing
footprint, and we have a strategic
objective to ‘engage with our suppliers
to uphold the same sustainability
standards that we hold ourselves
This year we started implementing
the ethical sourcing activities set
out in our sustainability strategy.
Improving our purchasing systems
Over the last two years Nufarm has
been working to upgrade our business
systems to better support and leverage
our global scale.
Our procurement team begun the
implementation of a global supplier
and procurement management system,
Ariba. Nufarm sources materials
globally and the deployment of Ariba
in 2018 will support a standardised
approach to negotiating and entering
agreements with our suppliers in the
future, giving us a greater capacity
to integrate sustainability measures
into our procurement processes.
Respecting human rights
in our supply chain
Nufarm developed its first human
rights policy in 2017, in which we
set out our zero tolerance stance
on all forms of modern slavery in
our operations and supply chain.
A copy of our human rights policy
can be found in the corporate
governance section of our website.
We have published a modern slavery
statement on the actions we’ve taken
to identify and prevent modern slavery.
A copy of this can be found on the
homepage of our corporate website.
Suppliers upholding our
We have developed a global supplier
code of conduct. This sets out Nufarm’s
expectations of suppliers, including
those relating to business ethics,
environment, human rights, child
and forced labour and employee
health and safety.
In 2018, we will progress the
implementation of our supplier
code of conduct by linking it to
sourcing events through Ariba, and
obtaining a contractual commitment
from our new and existing suppliers
to uphold our sustainability values.
A copy of the supplier code of
conduct is available in the corporate
governance section of our website.
Supplier corporate social
In 2017, Nufarm partnered with
EcoVadis to conduct corporate social
responsibility assessments of our
suppliers. This process increases our
supply chain transparency, which is an
important step towards reducing our
environmental and social footprint by
working with responsible suppliers.
EcoVadis is a global leader in this
field, providing corporate social
responsibility (CSR) ratings and
scorecards for over 20,000 suppliers.
The collaborative platform evaluates
suppliers’ policies, actions and results,
focusing on four main criteria:
• Environment – assesses the supplier’s
stewardship of resources during
operations and the sustainability
of the products it produces.
• Social – evaluates a supplier’s working
conditions and the health and safety
policies for its employees. This also
addresses human rights issues, such
as child and forced labour.
• Ethics – evaluates the supplier’s
business practices, such as bribery
and competitive practices.
• Sustainable procurement – evaluates
the supplier’s procurement practices.
In 2017, Nufarm assessed 23 per cent
of its existing suppliers (measured as a
percentage of total spend), and we will
be establishing targets for on-boarding
suppliers in 2018.
Of the suppliers that were assessed,
none were found to have significant
social or environmental impacts in
this reporting period and there was no
clear evidence of child or forced labour,
although several suppliers failed to
provide documentation to support
their claims that they were compliant
with globally acceptable practices.
Nufarm has not needed to terminate
any business relationships due
to negative environmental or
The CSR assessments will be
In 2018, we will begin including CSR
assessment of new suppliers as one
of the elements of our new supplier
evaluation process. The adoption of
EcoVadis has provided us with valuable
insight into our suppliers’ sustainability
practices and once the process of CSR
assessment is embedded, we will use
this to develop mutually agreed upon
improvement plans with our lower
Supplier risk management
A risk-based approach has been
adopted to determine supplier priority
for CSR assessment. This process
considers the risk associated with
the supplier’s country of operation,
their importance to Nufarm and their
product industry. Nufarm has a number
of important chemical suppliers in
China and India who were given
a high priority for CSR assessment
based on country risk.
This process has been formalised
with a new supply chain risk
management policy, which
will be implemented in 2018.
To support our risk management
approach to procurement, Nufarm
has commenced the implementation
of a global supply chain risk monitoring
service, RiskMethod, which will be
launched in 2018. RiskMethod monitors
risks to the supply chain, such as
financial, geopolitical, health and
safety, natural disasters, labour and
quality. Together RiskMethod and
EcoVadis will provide Nufarm with
a solid platform for monitoring and
responding to a broad spectrum
of supply chain risks.
NUFARM SUSTAINABILITY REPORT 2017
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