As part of our commitment to sustainability, SGS has issued a Supplier Code of Conduct, which defines both the non-negotiable minimum standards that we expect from our suppliers and the minimum requirements for responsible sourcing.
The SGS Supplier Code of Conduct enables us to integrate our Sustainability Principles with our procurement procedures. In this way, it adds value to society by ensuring that sustainable practices are adhered to throughout the supply chain.
The Code is organized around our four Sustainability Principles: Professional Excellence, People, Environment and Community. These principles reinforce our cultural values of trust, honesty, transparency, accountability, fairness and respect.
Professional Excellence
We have a reputation for maintaining the highest levels of integrity and expect our suppliers to respect our values. Therefore, our suppliers must:
- Comply with laws and regulations
- Prevent bribery and corruption
- Avoid conflicts of interest
- Be transparent
- Engage in ethical business conduct
People
SGS supports and respects the protection of human rights, provides a safe and secure working environment and promotes the health and wellbeing of our employees. Our Supplier Code of Conduct reflects our values by requiring our suppliers to respect the human rights of everyone they engage with and to uphold a duty of care for health and safety, both within their own organizations and in regard to the products and services they provide.
Environment
We are committed to achieving sustainable growth while managing the impact of our business on the environment. We expect our suppliers to prove that they engage with our values in regard to their environmental performance. They must:
- Implement environmental management systems
- Prevent pollution and minimize the generation of waste, wastewater and air emissions
- Invest in a carbon free future by minimizing energy consumption and greenhouse gas emissions, reducing carbon intensity and investing in new technologies and offsetting schemes
Community
SGS helps to create sustainable communities by providing local employment and encouraging our people to engage in local projects. We believe that everyone has a fundamental right to food, health, education, shelter and free enterprise. Therefore, we expect our suppliers not only to attract local talent and contribute to the local economy, but also to engage with the communities in which they operate, improving their educational, cultural, economic and social wellbeing.
Managing Risks in Our Supply Chain
We have a comprehensive but flexible three step process for identifying, assessing and managing risks in our supply chain, as defined by our Sustainability Principles. This process allows us to work with our suppliers to minimize risks and maximize benefits. The three steps are:
- Screening: we consider the supplier’s country of origin to identify possible risks to human rights or labor practices, the type of goods or services the supplier provides and the supplier’s spend per year
- Prequalification: suppliers must complete a self-assessment questionnaire which contains key questions on our requirements for suppliers as set out under our Sustainability Principles
- Audit: suppliers judged to represent the highest possible risk are then audited under standards set out by the Supplier Ethical Data Exchange (SEDEX)
We continuously monitor our suppliers’ compliance with the Supplier Code of Conduct by asking them to provide relevant information, and through audits by third parties and visits by SGS personnel.