Sustainable sourcing

Driving Sustainability Together

Partners and suppliers

We ask our suppliers to partner with us for a sustainable future, so that as Nouryon and our customers become more sustainable, they do, too. All business partners, including our suppliers and customers, must adhere to our Business Partner Code of Conduct, which sets expectations regarding compliance, safety, ethics, human rights, fraud prevention, and support for sustainability. In 2022, we increased the amount of spend evaluated for sustainability by EcoVadis to 60% from 50% the previous year.

The EcoVadis assessment of these suppliers includes requesting evidence on supplier actions related to energy efficiency, GHGs, renewable energy, offsets, waste heat recovery/ CHP, fuel switching, CCS, response to CDP- and employee training on these topics – as well as activities to reduce GHG emissions in suppliers’ own supply chains.

Examples of renewable sources we use include plants, trees, animals, algae, marine organisms, and microorganisms. We also use waste materials as inputs for higher value products, including used cooking oil, cotton linters, and others

Summary

94%

of suppliers assessed for CSR risk using EcoVadis’ Risk IQ tool (% of spend)

60%

of suppliers were measured on their CSR performance by EcoVadis score

22%

of organic raw materials are from renewable sources

Driving Sustainability with Our Suppliers

We use EcoVadis and EcoVadis Risk IQ to measure and track the sustainability performance and risk of suppliers across multiple categories – environment, labor and human rights, ethics and sustainable procurement – based on policies, actions, and results. If specific performance criteria are not met, a corrective action process is implemented with non-compliant suppliers to drive improvement or seek alternative sourcing where necessary. In 2022, we identified approximately 100 suppliers to be engaged in this process. Non-compliant suppliers that do not improve above our defined threshold are identified for phasing out. For more information, see our sustainable procurement statement.

This approach gives us an opportunity to engage our suppliers on sustainability and drive improvement. In 2022, we continued to train Nouryon category managers on sustainable sourcing and supplier requirements, including our sustainability strategy goals, with new training opportunities planned. Goals and metrics supporting our EcoVadis sustainability assessment and rating are also included in our Procurement team’s individual employee performance objectives.

Share of raw minerals from bio-based sources

In 2022, 94% of suppliers were assessed for CSR risk using the EcoVadis Risk IQ tool (% of external spend), and 60% of suppliers were measured on their CSR performance by EcoVadis score (% of external spend). This enables us to drive sustainability in our supply chain and serve our customers credibly and confidently.

Based on this supplier assessment, we are also able to reward compliance with our sustainability standards, taking their EcoVadis raw materials score in addition to exceptional partnership in sustainability, reliability, and special-event support into consideration. Our 2022 Supplier of the Year Award recognized Deutsche Bahn and Evonik for sustainability excellence, among other awards and winners.

In 2022, we also evaluated lower-carbon alternative raw materials. We will continue this practice as we further advance our Carbon Business Strategy.

Sourcing low-carbon energy

In 2020, 56% of our energy came from low-carbon and renewable sources, such as hydro, wind, solar, biomass for power, and steam from bio-waste. This was a slight increase from the year prior. We have set the goal to further increase the share of our purchased low-carbon and renewable energy to more than 60% by 2025.

At Nouryon, we source renewable energy using trusted approaches, such as assets owned by Nouryon, Power Purchase Agreements (PPA) with third parties, or energy attribute certificates backed by recognized industry standards and documentation.

To strengthen our sustainable energy sourcing capabilities, in 2020 we established the Nouryon Energy Team (NET). The NET brings together cross-functional expertise in Energy, Procurement, Operations, and Sustainability to further optimize and develop a comprehensive Energy Management Plan of sustainable and low-carbon energy solutions across the company.

Supporting Responsible Palm Oil

Palm oil is a key bio-based feedstock in our operations. We endorse the industry standard for palm oil sustainability, the Roundtable on Sustainable Palm Oil (RSPO), and five of our sites hold RSPO Mass Balance (MB) certification. We use processed palm oil products, which means that we do not have direct contact with palm mills or plantations. However, through ongoing interaction with our supply base, we aim to use sources that do not contribute to further deforestation or infringe on the rights of workers and local communities. We believe that palm oil can be cultivated in a responsible way and will continue to focus on using options not linked to environmental or social issues in the supply chain.

Learn more about the importance of responsible use of palm oil in our Sourcing Sustainable Palm Oil Statement

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Genetically Modified Organisms (GMOs)

Nouryon does not manufacture GMOs. We do not sell products that use GMOs to provide any specific functionality, nor do we use GMOs in manufacturing processes to impart any specific variability. Certain raw materials that we use are derived from crops produced from GMOs prior to our use, for example, soybean oil and cotton linter cellulose. These materials are used in products that make up roughly 6% of our products by revenue in 2022. Nouryon continually monitors the ongoing debate around GMO usage and will act upon any new findings, as appropriate.

Position statements

Partners and suppliers

Sustainable palm oil documents

More on sustainable sourcing

Learn more - Nouryon's sustainability pillars

Improving our safety performance and environmental footprint

We continuously work to improve our safety performance and environmental footprint for the benefit of our employees, contractors, customers, neighbors, and the environment

Growing our sustainable solutions through innovation

We provide solutions that are essential in applications ranging from pharmaceuticals and farming to electric cars and building insulation. Our goal is to deliver not just the desired functionality but improved sustainability performance as well.

Engaging people, partners, and society

At Nouryon, we aim to achieve sustainable business growth and have a positive impact on people’s everyday lives through our essential solutions as well as our actions.

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