Driving Sustainability Together
Driving Sustainability Together
We only do business with suppliers, customers and business partners who share and support our standards. Our relations are required to comply with our Business Partner Code of Conduct, which sets out expectations for suppliers regarding:
Compliance | Safety | Ethics | Human rights | Fraud prevention | Exclusion of conflict minerals | Support for sustainability | Compliance with laws and regulations.
This requirement is included in all new contracts and in all purchase order terms and conditions.
We assess the top 34% of our suppliers* in terms of spend on raw materials, energy, and logistics using the EcoVadis CSR platform** and we measure and track the sustainability performance of these suppliers based on their policies, actions, and results.
* Compared to 26% in 2019 ** For more information: https://ecovadis.com/
Bio-based raw materials purchased
To help meet the growing demands of our customers for more sustainable products, we develop products using bio-based raw materials partly or fully derived from nature. Bio-based sources enable a more circular economy and can also have lower carbon footprints vs. alternatives across their lifecycle, reducing greenhouse gas emissions.
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.
In 2020, 19% of our organic raw materials came from bio-based sources. This is 7% of the total volume of raw materials purchased, which also included inorganic raw materials like salt, minerals, and clays.
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.
Case: Adding sources of low-carbon energy
To reach our 60% target by 2025, we constantly look for ways to increase our share of renewable energy. For example, in 2020 we installed solar panels at our organic peroxide site in Mahad, India. The panels will generate approx. 30% of the site’s power needs in a sustainable way, regardless of the local power supply mix, saving around 250,000 tons of CO2 per year.
Roundtable on sustainable palm oil
Palm oil is a key bio-based feedstock in our operations. We use processed palm oil products, which means we do not have direct contact with palm mills or plantations. However, we endeavor to use palm oil that comes from sources that do not contribute to further deforestation or infringe on the rights of workers and local communities through ongoing interaction with our supply base. We welcome a world in which palm oil can be cultivated in a responsible way and will continue to focus on the use of responsible palm oil not linked to environmental or social issues in the supply chain.
We endorse the industry standard for palm oil sustainability, the Roundtable on Sustainable Palm Oil (RSPO38), and four of our sites hold RSPO Mass Balance (MB) certification.
Read more on Sustainable Sourcing
We believe that striving for a sustainable future also means being a safe and reliable partner for customers, employees, business partners, and communities, and we ask all our suppliers to work with us on this topic.
Learn more - Nouryon's sustainability pillars