Responsible supply chain

GRI report

Responsible supply chain

Transport

G4-EN30: Significant environmental impacts of transporting products and other goods and materials for the organization’s operations, and transporting members of the workforce 

G4-EN30: Transport impact, tCO2e1 2013 2012
Upstream transportation and distribution 134,129 151,496
Downstream transportation and distribution 369,157 368,879
Business travel 11,250 11,789
Employee commuting 13,754 14,998
Total transport 528,289 547,162
Total Scope 3 emissions 2,696,340 2,676,984
Transport as percentage of total Scope 3 emissions 20% 20%
1 Scope 3 emissions have been calculated according to the GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard and a supporting guidance document Guidance for Accounting & Reporting Corporate GHG Emissions in the Chemical Sector Value Chain.
Sources for emissions factors used include: Guidance for Accounting & Reporting Corporate GHG Emissions in the Chemical Sector Value Chain, the UK government's Department for Environment, Food and Rural Affairs (DEFRA), CEFIC and ECTA.

To mitigate the environmental impact of the supply chain, the optimization of logistics is one of the key measures. Kemira encourages its logistics service partners to use at minimum Euro 4 compliant transport equipment. Kemira’s target is to move on to the Euro 5 requirements starting from January 1, 2015.

Kemira has also focused its attention on load optimization, for example by sending full truck loads on the roads. Furthermore, the tendering  process has led the logistics service providers to look for back haul arrangements. Also the new logistics IT system, which already has been in use in Kemira’s North American operations, supports Kemira’s target of load optimization. The logistics IT system was implemented in Europe during 2013.

To mitigate the environmental impact from business travel the investments on video and online meeting facilities are targeted to minimize the business travel between Kemira locations.

Supplier assessment 

G4 indicators EN32, LA14, HR10, SO9: Percentage of new suppliers that were screened using environmental criteria, labor practices criteria, human rights criteria and criteria for impacts on society 

Kemira is committed to conducting business ethically and sustainably, and expects its suppliers to do the same. Each supplier under contract is required to sign the Kemira Code of Conduct for Suppliers, Distributors and Agents (CoC-SDA), or to comply with the CoC-SDA requirements through their own Code of Conduct in case it is more stringent. Our CoC-SDA covers topics related to business integrity, fair and ethical business conduct, respect of human rights, provision of decent working conditions and protection of the environment. 59% of the suppliers contracted in 2013 have signed the CoC-SDA. In total 36% of all Kemira's suppliers have signed the CoC-SDA by year-end 2013, although we only targeted for 25%.

Kemira has also initiated a supplier assessment process as part of the supplier performance evaluation (SPE) program. The assessment process includes a specific assessment of the most risky and critical vendors by assessing the supply risk, business impact and market availability, as well as sustainability topics, such as responsible care, compliance with legislation, compliance with industrial standards to protect the people and environment, labor practices and human rights.

The SPE program includes top 5 spend suppliers per sourcing line and low performing suppliers that represent 47% of our total spend in 2013 and 80% of our direct purchases.

The supplier assessment (or supplier audit) covered 29 suppliers in 2013.

Emissions

 

G4-EN17: Other indirect greenhouse gas (GHG) emissions (Scope 3)

G4-EN17: Greenhouse gas emissions from Kemira's value chain
tCO2e 2013 2012
Purchased goods and services 1,197,058 1,148,100
Capital goods 278,097 274,203
Fuel and energy related activities 218,518  216,265
Upstream transportation and distribution 134,129 151,496
Waste generated in operations 50,012 52,226
Business travel 11,250 11,789
Employee commuting 13,754 14,998
Upstream leased assets (leased offices) 11,671 17,014
Downstream transportation and distribution 369,157 368,879
End-of-life treatment of sold products 412,693 422,013
Total 2,696,340  2,676,984

See also the table Summary of greenhouse emission indicators in the section Responsible manufacturing: Climate change.

Greenhouse gas emissions from Kemira's value chain (Scope 3 of WRI/ WBCSD GHG Protocol). The calculation is based on the GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard and a supporting guidance document Guidance for Accounting & Reporting Corporate GHG Emissions in the Chemical Sector Value Chain. Scope 3 emissions have been calculated since 2012.

GHG emission are calculated as CO2 equivalents which includes CO2, CH4, N2O, HFCs, PFCs, SF6 and NF3. The sources for the emission factors used include the guidance document for the Chemical Sector, the UK government's Department for Environment, Food and Rural Affairs (DEFRA), the International Energy Agency (IEA), Ecoinvent, CEFIC and ECTA.

Data covers all of Kemira's production sites according to Kemira consolidation rules.