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Dear reader,
#TfS10years – To mark its 10th Anniversary, TfS has organised global and regional celebrations.
Since its formation in 2011, TfS has grown into the de facto standard for social, environmental and governance performance of chemical supply chains. For our member companies, TfS has become a key part of their corporate and CSR strategies and performance reporting.
We encourage you to forward this newsletter to your Buyers as well as CSR, Investor Relations, Public Affairs, Human Resources colleagues and the CEO Office. They, too, may subscribe and learn how – together - we are building a better world through sustainable supply chains.
Should you have any queries, please do get in touch.
The TfS global anniversary celebration “TfS – 10 years in the future” brought together inspirational, high-level speakers from all over the world. They discussed the future of the TfS initiative and presented the trends and topics that will affect sustainable supply chains and businesses over the next 10 years. You will find the recordings of all sessions on tfs-anniversary.com.
The website offers on-demand access to all presentations and panel sessions. Downloadable content is available in English, Chinese, Spanish, and Portuguese).
In addition, a communications package containing #TfS10years PPT and the TfS anniversary videos “A personal story of TfS” and “TfS – a force for good” are available to all member companies from YouTube and SharePoint. Feel free to use them in your internal and external communications.
We encourage you to follow our TfS anniversary celebrations on the TfS website and TfS LinkedIn. Please share, like or comment on the messages posted.
More will come … therefore stay tuned!
You will read more about the TfS China Anniversary celebration event in Ningbo on 26 October in the section “TfS Regions - update” below.
The first step of the approach has been to undertake an anonymous survey on the human rights practices of TfS member companies. 26 companies contributed, and the results are very instructive. Let’s deep dive into some key findings.
In line with TfS membership requirements, all members have some form of policy commitment on human rights. However, less than half of respondents have a stand-alone policy, and most refer to human rights in their code of ethics or equivalent. All policies include the supply chain.
Members’ value chain assessments focus mostly on a rights approach (labour rights, children rights…) while few members focus explicitly on vulnerable populations such as migrant workers. Queried on the risk level of 15 separate sectors, most member companies are aligned on the risks in the agriculture and mining sectors, yet the picture is more varied for other sectors. This discrepancy raises the opportunity for collaborating across TfS members on sector-level risk mapping.
Human rights are a shared responsibility across many different departments of member companies. The procurement function is rarely in a leadership position. Overall, human rights are still perceived as an issue facing many challenges such as resource allocation, KPI definition, governance, and prioritisation.
The survey has provided insights into where TfS can make a difference in offering member-driven engagement in three key areas: Being a platform for collaboration; guidance/tool creation; and support in capacity building. As a next step, TfS will organise a workshop with volunteers from member companies to draft and refine a common action plan.
The EcoVadis platform provides a good overview of our suppliers, and highlights their respective strengths and weaknesses. But some feel that functionality could be improved; that results and overviews could be more accessible; and that some processes could be automated.
What do you think? Workstream 2: TfS Assessement are keen for your feedback – we will then present concerns and suggestions to EcoVadis for improvements.
Of course, you can discuss your ideas with your personal success manager, or you can use the EcoVadis VadisVantage to communicate your ideas and proposals. We as Workstream 2 have the task to bundle the interests of TfS and promote it in front of EcoVadis. We can then decide together if our proposal can be easily turned into practice or if we need to start a project to realise bigger adjustments. But how can we do this if we do not know what are really the concerns of every member? And how can we judge if the concern of one member is the concern of more members?
We have therefore installed a Slido platform where you can easily hand in your own ideas www.slido.com #assessments. You can also use the platform to screen proposals of other members, rate them or give additional comments to it. Like this, we would like to collect and streamline proposals to Ecovadis and to make them more powerful. Please make use of this platform and influence our work with Ecovadis. We are your channel to it.
Let us go back to the launch in April: firstly, we gave access to members and auditors so they could get familiar with the system. Next up was the invitation of suppliers in June. With some delay they received an invite using a cryptic link (for convenience and security, no login needed) to access their respective Corrective Action Plans (CAPs).
As a next step, the new KPI dashboard will further improve visibility for instance on how well CAPs are being progressed, how many audits are due for a follow-up audit. All this information will be updated and visible in real-time via the KPIs:
In this article, we would like to focus on the progress with improvement after audits as expressed in KPI3, which will be displayed on several graphs:
The first chart identifies how many minor/major/critical findings are currently open (not closed by an auditor). As established in our process, only the major and critical findings are counted towards the KPIs. Although minor findings are displayed in the chart as well, they will not be counted.
The second chart displays the status of these findings in more detail: which are still to be approached (not yet started), are being worked on (in progress), or can be verified by an auditor (Ready for follow-up by auditor)
The third graph displays the status of the findings as they currently stand. All start as “open” and – based on the actual implementation of the required follow-up measures by the suppliers in their plant – gradually more will shift to “closed” as the suppliers progress on their actions. There may be some in “draft” if the auditor has not released them yet.
The final graph will display how many of your CAPs are being worked on vs how many are ‘idle’. This provides valuable information to members who can now use this information to follow up with their suppliers if actions are not being progressed.
We expect these graphs to be live on OASIS by the time you read this article. By the end of the year, we will test audit data mining. We look forward to your participation in this process!
Organizing 3 remote audits in 10 months, it is easier said than done. Yet, it is necessary we arm ourselves against new lockdowns, natural disasters (which may impede air travel) or increasing costs of fuel. What the Covid19 situation has taught us, is that we need to be flexible in our approach to work and use technology to our advantage. So why wouldn’t this count for the work of auditors? Other verification organizations, such as Sedex show that under certain circumstances it is possible to provide a valid remote alternative. With over 1000 Sedex remote audits done, their members made remote audits a valuable tool in their audit program and found little deviations from on-site audit findings.
Our audit companies (SGS, Intertek, DQS and ERM – https://tfs-initiative.com/audit-process/ see Audit Companies & Contacts) are knowledgeable to assess up front whether a site is suitable for a remote audit. Some auditors will call it a different name (remote assessment, online gap analysis) but for us it is a valid audit, as long as the TfS questionnaire is applied. To inform stakeholders, TfS organized an online workshop on the preselection process for remote audits
The TfS Office encourages all members to provide most of their remote audits by end of 2021, so they can be counted towards your audit KPIs, which are far behind targets in this year. As of 2022 we will communicate regularly on the results and geographic spread of remote audits. By June 2022 we will share are an in-depth comparison of remote vs regular audits. Stay tuned!
The TfS learning environment will help you support your buyers in upskilling their knowledge about sustainability topics that affect our shared supply chains. In turn, your suppliers will be able to build up expertise and skills in sustainability-related topics (specifically in the chemical industry) and learn about the TfS initiative and the basic expectations that we share as TfS members. Thus, they will be equipped to drive continuous improvements not only in their own operations, but also in the sustainability performance of their supply chain.
The TfS learning environment will be the one-stop shop for you, your buyers, and your suppliers to upskill in topics related to responsible sourcing. E-learnings, guidelines, webinar recordings, FAQ documents, and quick reference guides will be available. These will be suitable for all levels of experience (beginner, intermediate and advanced) and role (from blue-collar to management)
The learning content that will be provided covers aspects across all five evaluation pillars that are applied in both the EcoVadis assessments as well as in our TfS audits: Environment, Governance, Health and Safety, Labour and Human Rights, Management, and Sustainable Procurement. Content will be available in English, Chinese, Spanish, and Portuguese at launch with more languages added later.
At launch, the TfS learning environment will include more than 100 resources that we either developed ourselves (TfS specific or knowledge unavailable outside TfS), co-created with our partners (e.g. EcoVadis or other complementary initiatives), or purchased from third-party e-learning providers. By the way… if you are collaborating with somebody on specific responsible sourcing aspects (e.g. Human Rights or GHG emissions) that you would recommend, please do so: rebecca.weicht@tfs-initiative.com
The learning offer comes without cost, bite-sized, and will be particularly helpful if your supplier, and the buyer who accompanies this process, have done an audit or assessment, or want to prepare for one. In addition, we recommend integrating learning goals in your supplier dialogue to stimulate the appetite for learning.
The TfS learning environment builds upon the Docebo Learning Management System which has a strong focus on mobile “to-go” usage. Wherever our learners would like to take their knowledge bite, learning content will be optimised according to their device.
Further down the line, our TfS learning hub will provide space for community-building and peer learning that will help you, your teams, and partners to grow and succeed. Plenty of engagement opportunities to exchange experiences, ask questions, and share learnings will be offered. After all, collaboration, communities, and joint engagement is what unites us in the Together for Sustainability initiative.
The soft launch of the TfS learning platform will take place by the end of 2021 with a selected pilot group. The public launch is planned for Q1/2022.
You can already get involved today and help shape the Capability Building and Training Programme. To offer a varied and insightful learning hub at launch, we are looking for any learning material that you may be willing to share:
If you are happy to share materials but are not sure about the relevance, still please get in touch with us!
If you have feedback or would like to share expectations, please let us know! What else would you like to see on the platform? How can we make the TfS learning environment a success for you and your suppliers? To share your thoughts, please send an email to rebecca.weicht@tfs-initiative.com
Workstream 5: Scope 3 GHG emissions is steering and managing the programme and clarifies its purpose and the outcome that chemical companies and other stakeholders may expect.
Kicked-off in late 2020, the scope 3 GHG emissions programme consists of four work packages: 1. standardise approaches to measure GHG emissions data, 2. design the data collection and sharing approach, 3. engage suppliers to improve and 4. cooperate with external stakeholders.
The purpose of the project is to provide a data collection and sharing solution for product carbon footprint data (scope 1, 2, 3-upstream) that is in line with the leading standards for greenhouse gas accounting and reporting. This should enable effective emission reduction management by individual TfS member companies.
TfS will partner with major NGOs and associations (including WBCSD and SBTi) to ensure rapid development of global guidelines that can be scaled effectively. The TfS standard will serve as a drop-in solution for WBCSD, Catena X and others.
TfS will develop sectoral guidance for the chemical industry in how the PCF (scope 1, 2, 3-upstream) GHG emission data can be calculated. This will cover existing standards plus additional guidance for specific questions.
Workstream 5 will deliver pragmatic, meaningful, ISO compliant guidance for the chemical industry to be audit ready.
To effectively manage GHG emissions in any company, all data shall be calculated as PCF data. For a limited period, suppliers will be allowed to provide cumulated GHG data, but must transition to the PCF methodology after one year.
The TfS Workstream 5 will :
Participants were welcomed by TfS General Manager Gabi Unger and TfS President Bertrand Conquéret who expressed gratitude for the resilience, passion, and energy everyone devoted to building the foundations of TfS over the past 10 years. They also thanked those who will continue improving TfS in the next decade with a commitment to grow, deliver and create impact.
To break the ice, participants had the opportunity to get acquainted with the representatives of the newly joined TfS Members, as well as to catch up with the work of the Regional Teams and Workstreams.
The event agenda also included two sets of parallel breakout sessions on key topics addressed by the TfS Workstreams. Discussion included Human Rights as a crucial area for all TfS Member companies, and on the main findings of a recent related survey (Workstream 1). Participants were also able to share the difficulties they encounter in nominating suppliers for TfS Audits and get informed on the developments of Remote Audits. In other sessions, participants were invited to offer their suggestions on the way forward for the newly implemented Capability Building project (Workstream 4) and Tier-N project (Workstream 2). Finally, the concluding plenary session outlined the objectives and challenges for decarbonising supply chains presented by Workstream 5.
All sessions of the TfS Annual Workshop 2021 were recorded and are now available on the TfS SharePoint.
#TfSTalks are online discussions on sustainability topics of joint interest to the TfS community. During each webinar, a TfS member presents their best practice around a specific topic and encourages discussion and exchange of learnings. #TfSTalks are scheduled every quarter.
Attended by 120 participants, the second #TfSTalks webinar on 22 April 2021 focused on Human Rights. Petra Lehmann, Sustainable Procurement Manager AkzoNobel; and Janina Lukas, Head of Ethics & Social Impact Bayer; shared their best practice in Human Rights due diligence in line with UNGP. The presentation was followed by a very lively Q&A session.
The third #TfSTalks webinar on 31 August 2021 focused on GHG Scope 3 emissions: Product Carbon Footprint. Attended by 220 participants, guest speakers Norbert Mahr, Director Supplier CO2 Management Programme BASF, and Dr. Yvonne Heischkel, Supplier CO2 Management BASF, discussed BASF’s GHG target and Product Carbon Footprints for the BASF portfolio, the BASF Supplier CO2 Management Programme, and their key learnings. The presentation was followed by a lively Q&A session.
The fourth #TfSTalks webinar will take place in Q4/2021 and will cover TfS Audits and member companies’ best practice. Stay tuned for more details.
The presentations, webinar recordings and Q&A document of each of the #TfSTalks can be found on the TfS SharePoint. All TfS members have access to the TfS SharePoint (see also section below “Useful resources”).
Rebecca Weicht is TfS’s new Capability Building and Training Manager. Rebecca will lead the development of our practice-oriented programme for both supplier and buyer communities that launches at the end of 2021. This will help participants solve key issues in the field of sustainable development.
Rebecca brings substantial work experience in capability building and training to this role. She previously worked on the launch of a global learning management system reaching 50,000 users for an international trade association working in the field of sustainability. This included the development of blended e-learning and face-to-face learning paths. Rebecca has also designed and delivered training for sustainability and procurement staff and business leaders.
Prior to this role, Rebecca co-founded and led a non-profit organisation concerned with fostering entrepreneurial skills in learners driving policy and practice in this area. She also held the role of Associate Lecturer at Manchester Metropolitan University in the UK, where she taught sustainability-related modules. Rebecca pursues a PhD in the field of business and human rights at MMU.
Says Rebecca “I am excited to work closely together with TfS member companies to develop and launch a comprehensive capability building and training programme that supports members to drive sustainability in their supply chains. I feel lucky to join TfS at this exciting time and look forward to how we can shape capability building beyond the launch of our ambitious first milestone at the end of this year.”
Margherita Locatelli recently joined TfS as the new Project Assistant. She takes responsibility for all TfS office administrative tasks, such as SharePoint admin and invoicing & accounting support. In addition, she works closely with the TfS Audit Manager on audit-related tasks, including reviewing supplier nominations and audit reports. She also supports the organisation of TfS meetings and events.
Before joining TfS, Margherita completed a Blue Book Traineeship at the Internal Audit Service (IAS) of the European Commission. There she got acquainted with audit procedures, while conducting research and producing working documents supporting IAS’s in-depth Risk Assessment. Prior to this, she worked as a researcher at the European Institute for Asian Studies, a Brussels-based think-tank that studies and fosters EU-Asia relations.
In addition to completing a Master’s degree in Global Studies from Ghent University and Wroclaw University, Margherita has study and work experience of China, Germany and Ireland. She is fluent in Italian and English and speaks Chinese and German.
Says Margherita: “I am thrilled to join the TfS Team and to contribute to the Initiative’s work towards its ambitious goals. I look forward to getting to know this inspiring TfS community better and work closely with its members!”
The growth of TfS underlines once more the growing importance for chemical producers to assess and improve the performance of their procurement operations, and supply chains, against a set of well-defined environmental, social and governance criteria.
The steady increase of TfS membership reflects the growing importance and awareness of the contribution of best-in class sustainable businesses to a better world. The addition of two new members enhances the reach and diversity of TfS, increasing its impact on the sustainability performance of chemical supply chains. TfS President Bertrand Conquéret says “I proudly welcome Croda and Givaudan into the TfS community. Croda and Givaudan become the 30th and 31st member companies, further contributing to TfS’s strategic priority to grow the initiative’s reach and diversity of members and suppliers. The growth of the membership enhances our collective impact on the sustainability performance of chemical supply chains. Under the current global market conditions, the call for best-in-class sustainable businesses only increases.”
Willem Mutsaerts, Global Head of Procurement and Sustainability for Givaudan commented “We’re proud to join the TfS community. Collaboration is essential in delivering on our bold ambitions and a transparent dialogue with our suppliers is vital to ensuring the long-term sustainability of our supply chain. As we take the next step in our responsible sourcing journey with the launch of our new Sourcing4Good programme, the additional knowledge and insight our TfS membership will bring will be invaluable in helping ensure we can continue to accelerate our progress as we grow together with our customers and suppliers.”
Michelle Fargen, Global Head of Procurement and Sustainable Sourcing at Croda said: “We are delighted to have joined TfS. Our supply chains are an integral part of our operations and, as a member of TfS, we will continue our work to understand industry best practice, moving us closer to fully sustainable, ethical, and transparent supply chains and supplier partnerships. Ensuring these practices throughout our supply chain will help us achieve our 2030 sustainability commitment to become the most sustainable supplier of innovative ingredients”.
Key pillars of Grow&Deliver (the TfS strategy for the period 2020-2025) include the expansion in key growth areas like Asia (with focus on China and TfS teams in Japan, India and now Singapore); the strengthening of the TfS community; the development of programmes of joint interest such as TfS scope 3 GHG emissions and the TfS global capability building; and finally raising the bar through, for example, data mining and technology playing a more important role in the TfS programme. These joint activities will make the TfS proposition stranger putting it in leadership position to drive sustainability through global businesses.
Bertrand Conquéret, President Global Supply Chain BV & Corporate Senior Vice President Purchasing Henkel, was elected as TfS President for a second and final term 2021-2023. He emphasised that as the world is entering the final decade on delivering on the UN SDGs, it will be up to the TfS community to lead and move a generation forward.
The 31 TfS CPOs also elected a new TfS Steering Committee for the period 2021-2023: Steven Brughmans, BASF; Joachim Christ, Merck; Lynn De Proft, Solvay; Erk Thorsten Heyen, Wacker; Markus Mirgeler, Clariant; and Thomas Udesen, Bayer.
Information sources:
More information on the TfS Grow&Deliver strategy 2020-2025:
TfS SharePoint (password protected)
Earlier this year, TfS Singapore formed a regional operating committee with representatives from Henkel, Arkema, Azelis, Semperit, Solvay and Syngenta.
As a major hub in Southeast Asia, Singapore is an attractive base for supply chain management due to its excellent logistics infrastructure and connectivity, vibrant innovation ecosystem and national push for greater sustainable development as detailed in the Singapore Green Plan 2030.
“For TfS, Asia is a focused region, and Singapore is a major hub in Southeast Asia. By sharing experiences and combining resources and scale, TfS Singapore aims to drive sustainable supply chains in the chemical industries in Singapore, Southeast Asia and beyond,” said Thomas Holenia, President of Henkel Singapore.
Aligned with the global TfS strategy 2020 - 2025, TfS Singapore aims to foster a community, utilise the high standards that TfS has created, and pivot from measurement to the delivery of substantial positive impact in the chemical supply chain. Core topics on the agenda are sustainability assessments of suppliers as well as best practice exchange and joint actions, with the current focus on the reduction of carbon and greenhouse gas emissions.
Collaboration is key to achieving these endeavours. As such, the TfS Singapore team will seek to connect with other TfS members, strengthen engagement with its base of suppliers and business partners, and explore cooperation with the Singapore Chemical Industry Council.
TfS Singapore represents another milestone for TfS in terms of expanding its reach into Asia as well as progressing in its global mission to push the sustainability performance of chemical suppliers around the world in both mature and emerging markets.
More recently, TfS Singapore welcomed Evonik onboard, represented by Rui Wang, Director and Head of Procurement for SEA and ANZ.
Thomas Holenia, President of Henkel Singapore, said, “Evonik has joined at a perfect time, when the TfS Singapore committee is defining its work scope and roadmap, while reaching out to other TfS member companies and industry associations.”
Additionally, Henkel has added Jeanie Tham, Corporate Purchasing Manager, PMO Sustainability for Adhesive Technologies, to the TfS Singapore operating committee.
With the addition of Rui and Jeanie, TfS Singapore now has a total of 11 representatives from seven companies, working together to drive sustainable supply chains in Singapore, Southeast Asia and beyond.
A priority for TfS Singapore is to increase the engagement in the chemical ecosystem. In line with this, initial discussions have commenced with the Singapore Chemical Industry Council to explore opportunities for cooperation. TfS Singapore will continue to connect with other TfS members, welcome new members to join the team, and strengthen its collaboration with suppliers and business partners.
To review its achievements in the Chinese market and establish plans for building a more sustainable chemical industry in China, TfS will hold a 10th anniversary celebration in Ningbo, China on Tuesday, October 26, 2021.
TfS unites the world’s leading chemical companies and industry experts and actively seeks collaboration with major organisations and initiatives with a similar vision and goals to further enhance its influence. In China, TfS has been successfully cooperating with China Petroleum and Chemical Industry Federation (CPCIF) since 2016 to spread global standards for sustainable performance of chemical supply chains and raise awareness of the need for sustainable development in China’s chemical industry.
At the celebration event in China, TfS is honoured to have Mr. Li Shousheng, President of CPCIF, deliver a speech and meet with TfS members, including representatives of Wanhua Chemical, the first Chinese chemical company to join TfS. TfS awards will be presented to chemical suppliers who have made outstanding achievements in improving their sustainability in recent years. This is intended to encourage more Chinese chemical companies to transition to a sustainable development path.
Looking to the future, TfS will invite several industry experts to participate in the roundtable discussion. They will share best practice of sustainable supply chain management and discuss ways to improve the sustainability of Chinese and global chemical industries. TfS sincerely hopes to deepen cooperation with more Chinese companies and industry experts and work together to build a more sustainable chemical supply chain and create a better future.
14:00 - 14:05
Opening (video)
Bertrand Conquéret, CPO Henkel and TfS President
Gabriele Unger, TfS General Manager
14:05 - 14:15
Welcome address
Li Shousheng, Chairman of CPCIF
14:15 - 14:35
Keynote speech
Fuliang Xia, President Evonik Greater China
14:35 - 14:55
Celebrate 10th anniversary and look back on the progress made in China
Robert Yang, Procurement Director Asia Pacific Goods & Services, TfS APAC President in Duty
14:55 - 15:25
Award Ceremony
15:25 - 15:45
Wanhua’s TfS Journey
Zhang Shoujun, General Manager of Procurement Department, Wanhua Chemical
15:45 - 16:00
Tea Break
16:00 - 17:15
Roundtable discussion: Sustainability Journey of Chemical Industry and Best Practice Sharing
Moderator: Pang Guanglian, Executive Board Member, Vice Secretary General, CPCIF; Secretary General of Committee of Multinationals of CPCIF
Panelists:
17:15 - 17:20
Closing
Robert Yang, Procurement Director Asia Pacific Goods & Services, TfS APAC President in Duty
The second annual Chemical Week Financial Outlook & Sustainability Conference and Award ceremony is approaching. Register to attend the free two-day conference, watch the TfS fireside chat, and see if our shortlisted TfS member companies win any awards.
The virtual conference takes place from 08:30 - 11:00 EDT on November 17 and 18 and features speakers from various multi-national and global corporations. The Awards ceremony is at the end of the morning on November 18. TfS will hold a fireside chat prior to the awards at 09:50 EDT (details are being finalised.) Shortlisted companies (including TfS members), across six categories, have been announced.
You, your colleagues and suppliers are encouraged to register to participate.
Four TfS EcoVadis supplier training webinars took place in 2021, in Portuguese and Spanish. The webinars covered the entire region, focused on the TfS Assessment process, methodology, improvements & Corrective Action Plan (CAP) and current resources available.
Around 500 suppliers attended the webinar sessions taking place in May/June and 150+ suppliers attended webinar training about improvements & CAP in October 2021.
This type of training has attracted the interest of the chemical supply chain and we hope that our contribution will encourage process improvements, making supply chains more sustainable and at the same time contributing to a better world.
An archive with previous newsletters is available at the bottom of this page.
Keynote, speeches and panel session recordings of the global TfS Anniversary celebration “TfS – 10 years in the future” are now available. View or download videos in English, Spanish, Portuguese and Chinese.
Your destination for lots of TfS standard documents and information, organised in general and Workstream-specific folders and password protected. Need a password? Send an email to info@tfs-initiative.com
The collaborative working platform for several Workstreams or joint TfS projects; to be used by people involved with a Workstream or project (by invitation from the Workstream Chair or Co-Chair).
Your information platform for all TfS info, latest news, videos, supplier academy, etc.
Containing several videos that help you better understand TfS, its strategy, activities, and processes.
Connect and follow the TfS LinkedIn to stay abreast of the latest TfS news and activities.
If you have issues connecting to https://tfs-connect.org/, you may need to whitelist the url.
For general information Communications@tfs-initiative.com
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