Supply chain management

Our local and international suppliers provide goods and services to our operations, customers and consumers. Engagement and management of these suppliers throughout the supply chain is necessary to control costs and the quality of these goods and services. We are committed to working closely with our suppliers to improve their management and ethical practices, including human rights.

We have operated a responsible sourcing program since 2014 to identify relevant suppliers and screen their practices in the areas of human rights and labour standards, health and safety, environmental management and business integrity. In 2016, we continued to develop the program and restructured our key supplier classification and screening processes to enable us to screen key suppliers more efficiently. Key suppliers were screened by means of self-assessment questionnaires or third party independent audits in accordance with the Sedex Members Ethical Trade Audit procedure. The 92 active suppliers that participated in the program represented 54% of the Company’s total procurement spend, up to 8% since 2015 [1]

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 Stakeholder Forum (SSF), 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 treatment is allowed
  • Environment
  • Wage & benefits

Our responsible sourcing program is consistent with the Ethical Trading Initiative Base Code and national and international laws. In addition, many of our products are 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 the 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.