together for sustainability (tfs)4 1 together for sustainability (tfs) is a global,...
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TFS RECOGNITION
TABLE OF CONTENTS
2.1 TfS Vision 2020
2.2 TfS Tools
2.3 TfS Assessments
2.4 TfS Audits
TFS PURPOSE AND VISION
TFS TRANSPARENCY AND IMPACT
TFS SUPPLIER ENGAGEMENT
TFS EXTERNAL RELATIONS
TFS OUTLOOK 2019
HOW TO JOIN TFS
TFS ORGANIZATIONAL STRUCTURE AND
MEMBERS
5.1 TfS General Assembly and Steering Committee
5.2 TfS Work Streams
5.3 TfS Regional Operating Committees
5.4 TfS Members and Growth
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FOREWORD
Dear TfS Members, Friends and Supporters,
At TfS, we have made significant steps in 2018, starting with defining a framework that further guides the TfS initiative directly towards its overarching goal of generating positive impact by engaging suppliers to implement sustainability improvements.
We have crossed an important threshold, with more than 10,000 shared supplier sustainability evaluations accessible to the TfS Members. The transparency created by this data, shared by suppliers globally, opens the path for the implementation of tangible, measurable improvements in sustainability: something that all TfS Members strive to achieve.
In 2018 we welcomed two new members to the TfS initiative, UPM (Finland) and ICL (Israel). This growth in membership further extends TfS’ reach and strengthens the initiative with the introduction of diverse companies that share the common vision of TfS.
The growth trajectory is set to go further: TfS received an application from the first company in China to become a member of the initiative, a development that we are very much looking forward to in 2019.
We hope you enjoy finding out more about the work we do at TfS and our achievements to date.
Rüdiger Eberhard
TfS President and CPO of Evonik Industries
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Together for Sustainability (TfS) is a global, procurement-driven initiative dedicated to improving supply chain sustainability in the chemical industry. Since it was founded by the Chief ProcurementOfficersofsixmultinationalchemical companies back in 2011, TfS has developed and continues to im-plement a program to assess, audit and improve sustainability practices within the supply chains of the chemical industry. The TfS approach creates a path of continuous improvement for both suppliers and their customers by initiating a dialogue on tangible sustainability improvements.
One of the crucial aspects of TfS is sharing the results of sustainability assessments and audits with all members. This results in a reduction of customer requests to suppliers, lessening the bureaucratic burden and enabling a more efficient allocation of resources, with more time left to focus on actual improvements. This benefits both the members – who can obtain more information on their suppliers’ progress – and the suppliers, who only have to be assessed and/or audited once for multiple customers simultaneously.
Being part of the TfS initiative means being part of a community of industry leaders who are active in the field of sustainability. One of the TfS objectives is to raise awareness on sustainability standards by initiating conti nuous improvements across sourcing markets and geographical areas, as well as by promoting best practices. In time, TfS aims to grow into a global standard for sustainable supply chains in the chemical industry.
TFS PURPOSE AND VISION
1 PURPOSE AND VISION
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Since TfS was founded, the initiative has undergone several subsequent develop-mentalphasesandhasmaturedsignifi-cantly. To direct the growth and devel-opment of TfS, a mid-term business plan called “Vision 2020” was developed and put into practice. The overall purpose and vision of TfS remain unchanged.
2.1
TfS Vision 2020
Vision 2020 was set up in 2016, beginning with extensive research and evaluation on the status of TfS and ambition of the TfS Members. The data was gathered through qualitative methods such as conducting interviews with each CPO of the TfS Members and participants in the TfS Work Streams. The annual TfS Workshop was an opportunity to define work packages and priorities for TfS to achieve the goals under Vision 2020.
TFS TRANSPARENCY AND IMPACT
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As a result, the following four focus areas were defined:
Grow: Quality growth of TfS membership
Evolve: Efficient TfS processes and support TfS Members to develop their internal programs aligned with TfS
Influence: Support TfS goals through external relations with, for example, other chemical associations
Impact: Document improvements arising from involvement in TfS activities
TfS has moved into the second phase of Vision 2020, which focuses the activities of the initiative more directly on creating positive impact. The first phase prioritized “Grow” and “Evolve” – developing and optimizing the processes aligned with TfS goals and growing TfS membership. TfS is still dedicated to these activities, however the stronger focus on impact marks an important step for the initiative’s development. TfS has grown from generating transparency across a large portion of the chemical industry’s supplier base, enabling customers to work with their suppliers on sustainability improvements by accessing more than 10,000 shared evaluations to date.
The more tangible focus on impact for TfS means finding new ways of engaging suppliers on improvements directly, by helping suppliers implement corrective actions after a TfS Assessment or Audit, for example by offering targeted training in the areas for improvement, based on
identified gaps. Now that the initiative is clearly moving in this direction, the internal goals and targets were also amended in 2018 to reflect this. To this end, the governance team (TfS Work Stream 1) developed a set of internal KPIs that are aligned with the initiative’s goal of creating
positive impact, measurable through sustainability improvements achieved at the supplier level. The set of KPIs was approved by the TfS General Assembly in 2018 and will be implemented by all TfS Member companies as of January 1, 2019.
GROW
Quality growth of TfS membership
IMPACT
Document improvements arising from involvement in TfS
activities
EVOLVE
Efficient TfS processes and support TfS Members to
develop their internal programs aligned with TfS
INFLUENCE
Support TfS goals through external relations with,
for example, other chemical associations
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TOGETHER FOR SUSTAINABILITY Followup and
manage business relationship
TfS Assessment by EcoVadis
TfS Supplier Audit
TfS Assessment by EcoVadis or Follow
upAudit
Sharing of sustainability assessment and audit reports with all TfS members
TfS member TfS memberTogether for Sustainability
TfS Assessment Corrective Action Plan
TfS Audit Corrective Action Plan
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2.2
TfS Tools
The TfS approach consists of two core elements:
TfS Assessments conducted by EcoVadis
TfS Audits conducted by independent audit companies approved by TfS
Each TfS Member chooses to apply either one or both of these tools to evaluate suppliers’ sustainability progress, based on the member’s own analyses and supplier selection criteria. The suppliers’ sustainability performance is verified against predefined criteria that is tailored to the requirements of the chemical industry.
By undergoing a TfS Assessment or Audit, suppliers have the benefit of not having to complete any other sustainability assessments or audits for other TfS Members, since the results are shared among all members, with the consent of the supplier. Hence the TfS principle: “An audit/assessment for one is an audit/assessment for all”.
The TfS program is not a certification scheme or a “pass or fail” exercise for suppliers; it is a starting point for a constructive dialogue between the supplier and the TfS Member. It offers instruments for both the supplier and the buyer to initiate a journey of continuous improvements.
Key Figures
Since the start of the TfS initiative, more than 10,000 supplier sustainability evaluations have been conducted under the TfS program. The sustainability performance of 10,566 suppliers has been rated within the TfS initiative based on EcoVadis assessments and 1,526 TfS audits have been conducted by means of the TfS Audit Program.
In 2018, 1,491 new supplier Assessments were initiated by TfS Members via EcoVadis
and 358 TfS audits were conducted through the TfS Audit Program, all results shared with the whole TfS group.
Also within the year 2018, over 2,000 suppliers, who had previously conducted a TfS Assessment through EcoVadis or a TfS Audit, documentedtheirprogresson improvements and shared their ReAssessments (2,276) or conducted an Audit Followup / ReAudit (122).
Spend & Risk Analysis
Supplier Code of Conduct
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An assessment involves an evaluation of a supplier’s sustainability management approach and performance. A typical industryspecific assessment is conducted using an online, webbased questionnaire; documents are requested as proof of implementation and reviewed, and the data and information are analyzed.
TfS decided to implement a simple process based on international Corporate Social Responsibility (CSR) standards and to provide CSR experts’ feedback to the members and the suppliers to use.
2.3
TfS Assessments
TfS Assessments per Region
TfS Assessments per region: 10,566 TfS Assessments by EcoVadis in the shared TfS pool (as of Dec 31, 2018)
Fig. 1
The TfS pool of supplier audit reports and scorecards has significantly grown over the years and now comprises a wealth of sustainability data. As such, TfS Members can access insights that cover a significant portion of their procurement base, due to the sharing principle of TfS.
The transparency driven by the TfS program means that its members can engage with and work with those suppliers on implementing improvements. The data and transparency created is a starting point for TfS to focus on generating impact that is measurable through improvements at the supplier level, when a reevaluation with the TfS tools is conducted.
To ensure a consistent and reliable supplier assessment approach, TfS chose EcoVadis, a global leader for CSR assessments, as its partner and service provider. EcoVadis’ sustainability experts analyze the answers and supporting documents and other evidence of the supplier’s sustainability policies. The results are combined on a dedicated scorecard that can be accessed by both suppliers and TfS Members on a webbased platform.
The following charts illustrate the distribution of TfS Assessments across countries, regions and industry sectors:
9%SouthAmerica
13%North America
34%AsiaPacific
Middle East and Africa
2%
Europe
42%
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TfS Assessments per Country TfSAssessmentsperIndustrySector
Fig. 2
Top 10 countries (representing 7925 out of 10556, which is 75% of all TfS Assessments. The remaining 25% are spread over 85 countries)
Fig. 3
TfS Assessments per Industry Sector: 10,566 TfS Assessments by EcoVadis in the shared TfS pool (as of Dec 31, 2018)
3%3% 3%
4%6%
7%
9%
17%
3% 3%3%
Germany
21%
NetherlandsEngineering
Consultancy
Mexico
United Kingdom
ItalyConstruction
India
France
Brazil
USA
China
28%
12%
7%
19%
NonChemical Manufacturing
18%
Other
Wholesalers
Logistics
9%General services
2%IT services
Chemical Manufacturing
22%
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CooperationwithEcoVadis
In 2018, TfS and EcoVadis renewed their agreement to work together on supplier assessments and joint projects. Both will further develop the successful cooperation based on the features described below.
TfSEcoVadisExecutiveCouncil
The cooperation with EcoVadis is coordinated by the TfS-EcoVadisExecutiveCouncil. The TfS Coordinator of the Executive Council is Cesare Guarini (Clariant).
The Council holds regular meetings and is responsible for developing and implementing projects in the framework of a joint Operational Roadmap, as well as working on topics of mutual interest. Current projects are clustered into three areas:
data management in the EcoVadis platform
harmonizing communication to suppliers
implementing the TfSEcoVadis governance
A governance document outlines a set of agreed principles in the cooperation on TfS Assessments, enabling both TfS and EcoVadis to further define collaboration and to work on continuous improvements. The principles state that:
EcoVadis supplier assessments are in line with TfS purpose and requirements
the transparency of the rating process and the involvement of TfS are ensured
the scientific and riskbased approach is used in the assessment process
data security and confidentiality are defined
audits and quality assurance rights of TfS are ensured
Projects concluded in 2018 include the update of the Chemical Industry Sustainability profile with input from TfS, as well as several updates in data management.
EcoVadisStrategicAdvisoryBoard
The TfS President represents TfS in the EcoVadis Strategic Advisory Board. The purpose of the EcoVadis Strategic Advisory Board annual meeting is to solicit feedback and guidance from EcoVadis’ top customers on EcoVadis offerings and external developments in the field of CSR and sustainability.
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TfS Audits per Region
TfS Audits conducted per region in the shared TfS pool (as of Dec 31, 2018)
Fig. 4
A TfS Audit is an onsite examination of a company’s sustainability practices by an independent thirdparty auditor. The scope of a TfS Audit typically covers a single or combined business location such as a production site or a warehouse. Within the TfS Audit process, the supplier’s sustainability performance is verified against a set of audit criteria on management, environment, health & safety, labor & human rights, and governance issues. These topics have been defined by TfS and are tailored to the requirements of the chemical industry.
Theapproachwasdevelopedbybuild-ingontheestablishedprinciplesofthefollowing, among others:
the United Nations Global Compact (UNGC)
the Responsible Care Global Charter
the International Labor Organization (ILO)
the International Organization for Standardization (ISO)
Social Accountability International (SAI)
The TfS Audit Program was updated in 2017. The document provides a detailed guide on the TfS Audit process, outlining
2.4
TfS Audits
the steps and responsibilities for the parties involved. The TfS Work Stream 3 (TfS Audits) was responsible for revising and updating the document, which is available on the TfS website for all interested stakeholders to read.
TfS strives to ensure that the TfS Audit protocol is always in line with the latest requirements and takes into account developments in international standards linked to sustainability. To this end, TfS regularly reviews the TfS Audit questionnaire to ensure that it includes the most relevant questions. The TfS Work Stream 3 carried out this review in 2018 and TfS issued an updated version of the TfS Audit protocol.
The following charts show the spread of TfS Audits across regions, countries and industry sectors:
11,0%South America
23,4%Europe
NorthAmerica
2,8%
0,3%Middle East
AsiaPacific
62,1%
0,4%Africa
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TfS Audits per Country TfSAuditsperIndustrySector
TfS Audits conducted per industry sector in the shared TfS pool (as of Dec 31, 2018)TfS Audits conducted per country in 2018 in the shared TfS pool (as of Dec 31, 2018)
Fig. 6Fig. 5
18,9%Other
9%Other
4,8%Brazil
6%Packaging
3,4%United States
6%Logistics Services
7,1%France
7%Technical Goods
8,8%Germany
9%Raw Materials Other
China
48%Raw Materials Chemicals
51%
India
9,0%Services
12%
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TfS Short Audit for Responsible Care (RCMS/RC14001®)Certifiedcompanies
The TfS Short Audit for Responsible Care (RCMS/RC14001®) Certified companies in the US and Canada has been used by TfS since 2017. Suppliers in those countries who have a valid RC Audit certificate are now eligible to undergo a shorter version of the TfS Audit, given the significant overlap between the TfS Audit and RCMS/RC14001®.
TfSRecognitionofSQAS(SafetyandQualityAssessmentsforSustainability)Assessments
To avoid duplication of audits, increase acceptance by suppliers and save resources, TfS and SQAS agreed to cooperate on audits in 2016. TfS recognizes SQAS Assessments by TfS. The cooperation between SQAS and TfS focuses on the following modules:
Transport service (covering logistics service providers offering transportation)
Warehouse (warehousing to chemical companies)
Following revision of the SQAS audit core questionnaire on April 1, 2016, TfS suppliers can now submit SQAS assessment reports instead of TfS Audits. The recognition will be extended to suppliers who conduct the assessment according to the Chemical Distributors’ (ESAD) module.
Cooperation with Audit Companies
TfS Audits are performed by a pool of approved auditors from DQS,ERM, Intertek and SGS, the TfSapproved audit companies. A dedicated Audit Company Relationship Team (ART) handles the cooperation with the audit companies. This team comprises members of Work Stream 3 and the TfS Office, and works on the strategic aspect of the cooperation with the audit companies, including working together to improve the quality of the TfS Audit Program.
In 2018, the ART developed a structured way of measuring the performance in the execution of the TfS Audits by the approved audit companies This was done by developing KPIs in a constructive dialogue with the audit companies. The objectives of this team are in line with the overarching theme of the TfS Vision 2020 to professionalize the relationship with the TfS service providers who evaluate suppliers. The KPIs for will be used to measure and improve the performance of audit companies in the TfS Audit process.
Auditor Training
TfS implements measures to ensure highquality audits. The TfS Work Stream 3 developed an elearning module for all TfS auditors. The aim of the module is to enrich the auditors’ knowledge on the execution of TfS Audits beyond what they learn during training from their audit company.
This interactive elearning module was launched in 2018 and rolled out across the entire TfS auditor pool.
As of 2018, attending the elearning module and passing a test is now a prerequisite for being admitted to the pool of TfSapproved auditors, in addition to the other requirements such as qualifications and experience.
Witness Audits
Another method used to improve the audit process is Witness Audits. Witness auditors evaluate the audit process against predefined criteria. Experts from a TfS Member can accompany TfS auditors to evaluate the auditor’s performance and how well the audit process was executed. Feedback is then gathered using a standardized questionnaire and used by TfS internally and is also shared with the audit company in a transparent manner, so they can look at ways of improving where necessary.
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Around 200 suppliers and TfS Member company representatives participated in the training day. The purpose of the training was to raise awareness of sustainability standards across chemical industry supply chains and mitigating sustainability risks in corporations, and detailed training was given on how to use TfS tools for sustainability improvements. The training itself has also been developed: as well as TfS Members, speakers now also include suppliers who have benefited from actively participating in the TfS process, who share their experience and best practice.
3 TFS SUPPLIER ENGAGEMENT
For several years, local TfS training for suppliers has been successfully conducted by the TfS Asia regional team. On September 3, 2018, a TfS supplier training day took place at the Evonik campus Shanghai Xinzhuang.
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TfSWebsiteandSupplierAcademy
The TfS website has been frequently updated with new content, for example a
Page Flow on TfS and a new interactive brochure. The TfSSupplierAcademy,
which contains four online training modules on Sustainability and TfS tools, was frequently accessed by interested parties, gaining more than 2,500 views as of the end of 2018. The TfS Supplier Academy aims to make TfS processes easy to understand and is primarily geared towards suppliers who are preparing to undergo TfS Assessments or Audits.
In China, the team runs the TfS WeChat platform, where material is regularly uploaded and TfS Members actively engage with their suppliers locally by, for example, sharing articles and best practices on sustainability management and TfS tools.
TfS has also created a LinkedIn page to share news and updates with interested parties. By using social media, TfS aims to expand its reach and engage a variety of stakeholders. So far, more than 40,000 people have visited the TfS LinkedIn page.
TfSAttestationofParticipation
The TfS Attestation is a document that individual TfS Members can send to suppliers voluntarily to thank them for participating in a TfS Assessment or Audit. It was launched in 2017, to enable TfS Members to increase recognition of suppliers who participate in either a TfS Assessment or Audit, and is in use across TfS.
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CIPS Supply Management Award
The Chartered Institute of Procurement and Supply (CIPS) is a nonprofit organization. With a global community of over 200,000 members, CIPS is the world’s largest organization dedicated to the procurement and supply profession. The CIPS Supply Management Awards reward the most innovative, forwardthinking procurement teams and individuals in the profession, and once a year, CIPS gives special recognition to companies and initiatives in various categories.
On September 12, 2018, TfS won the award in the “ThirdSector/NonforProfit Procurement Project” category. The CIPS judges commended TfS for being “an excellent joint initiative with clear results and engagement with the supply chain. The training program and approach to improvement make it an inclusive initiative for suppliers”.
TFS RECOGNITION
From left to right: host of the evening Russel Kane, TfS general manager Gabriele Unger, Thales Crivelli Nunes from Borealis and Linda Todd from Hays
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“More than a Market Award” in China
The “More than a market” initiative was launched by the German Chamber of Commerce in China and the Bertelsmann Stiftung. The third installment of the “More than a Market” awards took place on May 31, 2018, with around 100 different projects participating, and the new award category, “Supply Chain Management”, was introduced in 2018. Representatives from TfS China attended the “More than a Market” awards gala and received the finalist award for “Supply Chain Management”.
EthicalCorporationShortlist
The Ethical Corporation’s Responsible Business Awards, now in their 7th year, recognize innovative sustainable and responsible projects and business strategies globally. TfS was shortlisted in the category of “Supply Chain Management”.
From left to right: Victor Zhang (BASF), Hongming Zou (Henkel), Shirley Qi (Evonik), Frank Haunert (BASF)
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TfS President:Rüdiger Eberhard, Chief Procurement Officer, Evonik Industries
TfS General Manager: Dr. Gabriele Unger
Legal Adviser: Dr. Arne Ott, Evonik Industries
TfSisaninternational,non-profitassoci-ation under Belgian law (“internationale vereniging zonder winstoogmerk – IVZW” / “association internationale sans butlucratif–AISBL”).TheTfSOfficeisbased in the CEFIC premises in Brussels.
TFS ORGANIZATIONAL STRUCTURE AND MEMBERS
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First row (from left): 1. Andrea Franke (Bayer) 2. Dirk Eckert (Brenntag) 3. Erwin Dijkman (Eastman) 4. Shelley Stewart (Dupont) 5. Rüdiger Eberhard (Evonik) 6. Gabriele Unger (TFS) 7. Bertrand Conquéret (Henkel) 8. Gabriele Willenbrinck (Lanxess) 9. Joachim Christ (Merck) 10. Thales Crivelli (Borealis)
Second row (from left): 1. Mareike Klein (Henkel) 2. Cesare Guarini (Clariant) 3. Bernd Makowka (Lanxess) 4. Notker Bien (Syngenta) 5. Beatriz Mendez (Arkema) 6. FriedWalter Münstermann (BASF) 7. Erk Thorsten Heyen (Wacker) 8. Dirk Jan de With (Covestro) 9. Markus Mirgeler (Clariant) 10. Thomas Udesen (Bayer) 11. Arne Ott (Evonik)
The TfS General Assembly is the highest decisionmaking body of the organization. It comprises one CPO representative from each of the member companies who hold the voting rights in the association. The TfS General Assembly was held at the Bayer Crop Science site in Monheim am Rhein in Germany on April 26, 2018. One of the key decisions was the approval of the TfS Impact KPIs, which focus on measuring improvements at the supplier level.
In accordance with the TfS articles of association, elections of the TfS Steering Committee and TfS President are to be held every two years. Elections are therefore scheduled to take place at the TfS General Assembly in 2019, where a new TfS Steering Committee and TfS President will be elected.
5.1
TfS General Assembly and TfS Steering Committee
The TfS Steering Committee is the executive body of the association and comprises seven people from different member companies, including the TfS President. The current TfS Steering Committee, elected in 2017, consists of:
Rüdiger Eberhard (Evonik Industries)
FriedWalter Münstermann (BASF)
Thomas Udesen (Bayer)
Dirk Jan de With (Covestro)
Bertrand Conquéret (Henkel)
Kristian Saksida (Solvay)
Erk Thorsten Heyen (Wacker)
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1 3
4
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Work Stream 4
Supplier Engagement and Communications
Chair: Mareike Klein (Henkel)
Work Stream 4 is responsible for internal and external communication, as well as activities relating to engag
ing suppliers, such as developing the supplier academy and
organizing TfS events.
5.2
TfS Work Streams
Each TfS Work Stream is responsible for developing and managing different projects and aspects of the TfS initiative, and comprises staff from various member companies, making this a truly memberled initiative. The TfS Work Streams also submit decision proposals to the TfS Steering Committee to seek direction and approval for ongoing projects. Active participation from the TfS Members is crucial for the success of the initiative.
Work Stream 1
Governance and PartnershipsChair:GabrieleWillenbrinck(Lanxess)
This Work Stream is responsible for defining the governance
structure of the initiative, as well as coordinating TfS external
partnerships.
Work Stream 2
TfS Assessments Chair: Sabine Zallinger (Wacker)
Work Stream 2 focuses on developing assessments and
managing the relationship with the service provider (EcoVadis). Work Stream 3
TfS Audits
Co-Chairs: Andrea Franke (Bayer), Dominic Newbury (Syngenta)
This Work Stream concentrates on the TfS Audit Program and process,
as well as managing audit companies (SGS, Intertek, DQS
and ERM) together with the TfS Office.
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To enhance local coordination of activities and implement TfS globally, Regional Operating Committees, interlinked with the global Work Streams, have been established and are growing. This ensures a global reach and allows for the development of specific regional topics, e.g. local supplier training.
AsiaHead of TfS Asia Regional Team: Shirley Qi (Evonik)
The TfS Asia Regional Team was established in 2015 and is chaired by Robert Yang (Arkema). The team evolved into two Work Streams focusing on the most relevant regional topics, and includes a regional representative based in India. One of its key tasks is coordinating external relations with the Chinese Chemical Industry Association (CPCIF) and organizing supplier training in the region. Another important task is driving forward regional topics relating to TfS Assessments and Audits, in conjunction with the global TfS Work Streams, which are headed by Frank Haunert (BASF).
Activities in Japan kicked off in May 2018, with regional representatives of the TfS Member companies in Japan meeting for the first time to discuss potential regional activities of TfS going forward. This was
5.3
TfS Regional Operating Committees
followed by a meeting with the Japan Chemical Industry Association (JCIA). The TfS team in Japan is headed by BASF and Clariant, and is responsible for reaching out to all member companies locally to facilitate implementation of the TfS Programs and contacting potential member companies.
United StatesChair:AlexandraKraus (IFF)
In 2018, the TfS US Regional Team focused on further increasing TfS visibility in the region, by working on external relations and supplier engagement. The team represented TfS at several conferences and events including AFPM, ACI and Pittsburgh Chemical day, and is planning to attend other industry events. The team also organized local events to share and exchange experiences and best practices across the member companies as well as training on how to use the EcoVadis platform.
The TfS Steering Committee meeting in February 2018 was hosted by IFF in the US and combined with a Regional TfS team meeting in order to increase the exchange across regions.
SouthAmericaChair: Graziella Tramutola (BASF)
The team in South America represented TfS at ABIQUIM’s Responsible Care Congress 2018, with Marcelo Leonessa, Vice President Procurement South America at BASF giving a presentation. The South America team focuses on increasing awareness through communication activities in the region and establishing regular exchange and bestpractice sharing on the implementation of the TfS program across members in the region.
The TfS Member base has steadily grown since the start of the initiative: from the six founding members in 2011, the initiative grew to 22 members by the end of 2018. Collectively, TfS Members represent 325 billion euros in turnover (based on published financial reports) and an estimated 235 billion euros in spend.
In 2018, TfS welcomed two new members: UPM (Finland) and ICL (Israel).
5.4
TfS Members and Growth
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TfS is open to dialogue and cooperation with representatives from a range of organizations, in order to work jointly on improving sustainability in the chemical supply chain. As TfS focuses on the supply chains of the chemical industry, the International Council of Chemical Associations (ICCA), the regional Chemical Associations – ACC in North America, CEFIC in Europe, CPCIF in China – and other regional and local Chemical Associations are important stakeholders. TfS is also open to dialogue with other sustainability-related organizations and iskeentoexchangewiththemandlearnfrom their activities.
TFS EXTERNAL RELATIONS
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ChinaPetroleumandChemical Industry Federation (CPCIF) and TfS
Following the cooperation agreement signed between the CPCIF and TfS in 2016, both parties continued working jointly under this framework to promote and improve sustainability in the chemical industry and held further successful exchanges to that end. Together, they have focused on raising awareness and promoting TfS participation to suppliers, and have organized numerous joint supplier training courses over the years, as well as participating in conferences on behalf of TfS. Joint activities included a roundtable in 2017, and they also took part in a number of conferences in 2018 in order to present TfS membership to potentially interested companies. Efforts in this area have continued, as TfS intends to expand globally and include member companies from China in the near future.
JapanChemicalIndustry Association(JCIA)andTfS
An introductory meeting was held between TfS management and JCIA executives in May 2018. The aim of the meeting was to introduce TfS activities in the region, and the relationship is being nurtured by the local TfS team in Japan.
CEFIC and TfS
TfS’ cooperation with CEFIC is both a strategic and practical one: TfS supports Responsible Care by raising suppliers’ awareness of the international requirements and principles of the initiative in the area of its influence. Whilst one of the membership criteria of TfS is a commitment to Responsible Care, the focus of TfS as an association is to enable the upstream supply chain to also fulfil these principles, from the sourcing of raw materials right through to the delivery of products at customers’ premises, including transport safety and waste disposal. Both programs – Responsible Care and TfS – build on and complement each other.
GermanChemicalIndustry Association(VCI)andTfS
TfS is collaborating with the VCI (Verband der Chemischen Industrie – German Chemical Industry Association) and Chemie3, The Sustainability Initiative of the German Chemical Industry. The main element of this collaboration is a pilot project on supplier sustainability for Small and Medium Sized Enterprises (SMEs), enabling members of VCIChemie3 to use TfS tools for their own suppliers. Several SMEs were involved in the project and started using TfS tools to evaluate the sustainability performance of their own suppliers, thereby expanding their own sustainability efforts.
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The focus of TfS thus far has been on creatingtransparencybyexpandingthe TfS Program and collecting data in order to gain a deeper understanding of sustainability practices in the chemical industry supply chains. More than 10,000 supplier evaluation results (TfS Assessments and Audits) have been shared with all TfS Members.
The aim of TfS, however, is to improve suppliers’ sustainability levels by engaging them in continuous improvement. The focus of TfS as it matures as an initiative is therefore shifting towards defining and quantifying the impact of TfS, through measurable improvement data. The development of Impact KPIs to actively move TfS forward in
this direction for 2019 marks a significant step in the progression of the initiative. The KPIs will focus on measuring sustainability improvements made by suppliers, when conducting a reevaluation.
In 2019, TfS Members will engage more deeply with suppliers on improvements and look for new ways of participating in supplier development and capacity building by exploring dynamic online platforms and putting in place concrete improvement areas.
TfS is constantly working to expand and attract new members globally in order to increase its scope and impact and work towards achieving its vision of making supply chains in the chemical industry more sustainable. At the same time, TfS is exploring opportunities for impactful cooperation with other sustainabilityrelated organizations.
TFS OUTLOOK 2019
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TfS Assessments and Audits
EcoVadis will continue to be the provider for TfS assessments and the two organizations will undertake more joint projects. For TfS Audits, the task of working with the audit companies to achieve a highquality TfS Audit process will be ongoing, and a more concrete evaluation of audit company performance will be carried out as a result of the devised KPIs.
Regional Operating Committees
The TfS team in South America has consolidated and grown, and will put its priorities in action in 2019, by continuing to engage in regional events to increase the visibility of TfS and focusing on communication with suppliers. The TfS US team will continue to engage the industry across all levels by participating in key events and increasing awareness of the program. The TfS Asia team will keep on driving improvements by carrying out training activities with suppliers in the region and pursuing TfS objectives through external relations.
TfS Supplier Engagement
In line with the focus on Impact, supplier engagement is becoming a more prominent task for TfS and all its member companies. In 2019, more facetoface training with suppliers in China will be carried out, while other supplier improvement platforms will also be piloted, to engage suppliers in new ways. The TfS communications Work Stream will focus on expanding offerings for suppliers through new online platforms and dynamic, interactive tools. The initial focus will be to support suppliers on working towards improvements particularly in the fields of Health, Safety and Environment (HSE).
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TfSisexpandingandisopentopotentialmembers from all over the world. All members of TfS are chemical companies withasignificantshareofbusinessoper-ations engaged in chemical production, trading/distributing of chemicals or performing chemical synthesis, active in the area of sustainability and willing to join forces to enhance sustainability performance in their supply chains. TfS aims to grow into a global standard for the chemical industry over time. Any chemical company sharing the TfS vision is welcome to join us on our journey by becoming a member.
HOW TO JOIN TFS
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ThecurrentTfSMembersasof2018
ClickontheTfSmembers’logos to get more information
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Membership Criteria
To become a member of TfS, certain criteriamustbefulfilled,andprinciplesadhered to:
Chemicalcompany with a significant share of business operations engaged in chemical production, trading/distributing of chemicals or performing chemical synthesis
UNGlobalCompact: Member or public supporter of the UN Global Compact
Responsible Care: Commitment of the applicant to the chemical industry’s Responsible Care program or a commitment to its guiding principles
Transparency:Sustainability report published regularly (GRI or integrated report)
Compliance: commitment to act in compliance with the applicable laws, antitrust regulations and industry codes of practices as well as fair business practices
Sustainability ratings: EcoVadis score above 60
CPOcommitment: Readiness to fulfil obligations and utilize rights of TfS Members
Membership Commitments Each member of TfS commits to:
Contribute to the development, growth and success of TfS, for example by actively participating in the Work Streams
Implement the TfS program in the member company and complete a certain number of assessments and audits per year
Any interested companies who want to find out more about TfS Membership are welcome to contact the TfS Office at [email protected].
MembershipBenefits
An efficient approach and avoidance of duplicate work by buyers through sharing of audit and assessment results
Creation of increased supply chain transparency on sustainability risks and opportunities
A common standard that enables benchmarking of supplier performance, globally and across commodity/categories
Improved quality of assessment and audit execution, as well as followup on the results
Building up longterm business relationships with suppliers, and initiating a journey of improvement with them
Bestpractice and knowledge sharing within a network of leading companies in supply chain sustainability
Contributing to the direction of the association, by being part of the General Assembly
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CONTACT
Together for Sustainability aisbl (TfS)
Rue Belliard 40
B1040 Brussels
info@tfsinitiative.com
Rüdiger Eberhard
TfS President
Gabriele Unger
General Manager TfS
Phone: +32 2436 9620
gabriele.unger@tfsinitiative.com
BankAccount
BNP Paribas Fortis
TOGETHER FOR SUSTAINABILITY AISBL
IBAN: BE33 0017 5100 0146
BIC: GEBABEBB
VAT/ TVA: BE 0589 936 479
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