Supply chain management

Asaleo Care’s local and international suppliers provide goods and services to our operations, customers and consumers. Engagement and management of our local and international suppliers throughout the supply chain is necessary to control costs and quality of goods and services. It also enables Asaleo Care to work with suppliers to improve management and ethical practices, including human rights, within our supply chain.

In 2014, we launched a responsible sourcing program with the aim of gaining a better understanding of the practices undertaken by suppliers within our supply chain. This program led us in 2015 to identify and screen key suppliers in our supply chain based on either the annual value of their supply to Asaleo Care or the origin of supply. Suppliers were screened through self-assessment questionnaires or third party independent audits in accordance with the Sedex Members Ethical Trade Audit procedure.  The 89 suppliers that participated in the program, represented 46 % of the Company’s total procurement spend[1]

We use our responsible sourcing program to identify relevant suppliers and enables us to screen for supplier practices in the areas of human rights and labour standards, health and safety, environmental management and business integrity.

Asaleo Care is a member of Sedex, the Supplier Ethical Data Exchange.   Members share and utilise information to help manage and improve ethical standards within the supply chain.   We collate supplier data via the Sedex platform from Supplier self-assessment questionnaires and third party independent audits according to the Sedex Members Ethical Trade Audit (SMETA) form.  We then assess risk within our supply chain via the Sedex Risk Assessment Tool developed in partnership with Maplecroft.

Criteria used to screen suppliers in the Responsible Sourcing Program, as determined by the Sedex Associate Auditor Group (AAG), include:

  • Management systems
  • Working hours
  • Business ethics
  • Employment is freely chosen
  • Discrimination
  • Community benefits
  • Freedom of association
  • Regular employment
  • Health and safety
  • Child labour
  • No harsh or inhumane treatmentis allowed
  • Environment
  • Wage & benefits

Asaleo Care’s responsible sourcing program is consistent with the Ethical Trading Initiative Base Code, and national and international laws. In addition, many of our products are Forestry Stewardship Council ® (FSC ®) certified goods, which means we are assured that those products are free from any direct or indirect involvement in activities that violate the traditional and human rights in forestry operations, as required by International Labour Organization (ILO) Convention 169 [2].

[1] Based on spend in Australia, New Zealand and Fiji.

[2] According to FSC-STD-40-004 V2-1.