ECONOMY

BUSINESS: 333 PRACTICES


TOPIC:

Initiative

1st Evaluation of key suppliers of MYTILINEOS in SOCIAL and ENVIRONMENTAL issues

1st Evaluation of key suppliers of MYTILINEOS in SOCIAL and ENVIRONMENTAL issues
SUBMITTED FROM:

MYTILINEOS

MYTILINEOS Energy & Metals is a global industrial and energy company covering two business Sectors: Energy and Metallurgy. The Company is strategically positioned at the forefront of the energy transition as an integrated utility, while already established as a reference point for competitive green metallurgy at the European and global level. It has a consolidated turnover and EBITDA of €6.35 billion and €823 million, respectively, and employs more than 5,442 direct and indirect employees in Greece and abroad.

 

https://www.mytilineos.com

 


Contact

Objective Action

MYTILINEOS, in 2018, proceeded to the self-evaluation of its main suppliers, as defined by each TED, through field research with a structured questionnaire. This initiative was implemented in the context of the goal set by the Company until 2025 for the development of an overall responsible supply chain.

The reasons why this goal has been set are:

  • Protection of the company's reputation, in the context of its continuous and responsible development, from conditions that may cause the implementation of irresponsible practices by its key partners and suppliers.
  • The implementation of the corporate policy and the practical use of the Supplier Code of Conduct and thus better management of the supply chain.
  • Contribution to Global Objective 12 for Responsible Consumption and Production
  • Coverage of a legal reporting requirement for Non-Financial Data (Law 4403/2016)
  • Coverage of OECD Principles, GRI STANDARDS and Global Compact (CoP).
  • Strengthening ESG Ratings.
  • Coverage of business needs of the company's TEDs.
 

Target Audience

272 main suppliers of MYTILINEOS from all Sectors of its Business activity.

 

Duration

October 2018 - January 2019


Description

MYTILINEOS's rationale for evaluating its key suppliers was twofold: 1) to investigate whether the company's key suppliers have a process for identifying and managing significant existing and potential adverse effects (environmental and social) related to their activity; and 2 ) the basic recording of these effects to enable the company to evaluate them and plan any corrective actions in the context of the goal it has set for the development of an overall responsible supply chain.


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Impact on Society

The following are the most important findings of the evaluation:

  • 7 out of 10 said they have a process for identifying and managing environmental & occupational / social impacts.
  • Also, 7 out of 10 mentioned practices that they apply to limit both environmental and work / social impacts from their activity.
  • Almost 5 out of 10 have certified environmental management systems and Health & Safety at work (ISO 14001 & OHSAS 18001).
  • Overall, there seems to be a discrepancy in the existence correlation between the impact / risk recognition process (environmental and occupational & social) and certified systems of either Environmental management or Occupational Health & Safety. This discrepancy is more pronounced in domestic suppliers and is mainly attributed to the small size of companies (lack of information, support, difficulty in coping with the relevant costs), as well as to their exemption or compliance with the law, a practice which, as they state, covers generally the specific "need".
  • The degree of correlation between the suppliers who stated that they have an impact / risk recognition process and the reporting of relevant practices that they apply for their prevention or treatment, is very high, reaching 97%. Regarding the declared practices, a significant percentage refers to the compliance with the legislation, especially in labor issues, while the reference to more specialized initiatives is limited.
  • There is also a common position (by both domestic and foreign suppliers) on the issues they identify as areas with potential negative impacts. Regarding the most important potential environmental impacts, the suppliers mentioned: waste management, energy consumption, environmental pollution, gaseous pollutant emissions and water consumption.
  • Respectively, Health and Safety at work, fair treatment, wages - leave - overtime of employees, product quality and safety and issues of corruption and bribery are the most recognized labor and social impacts.


Initiative Location

MYTILINEOS Headquarters


Working with Organization

no


Workers Participation

Procurement / Purchasing Departments of the Activity Sectors and Central CSR Service. of MYTILINEOS


Benefits for Οrganization

MYTILINEOS, after studying the results and the practices stated by the suppliers, proceeded to the planning of specific improvement actions such as the implementation of the second evaluation cycle with suppliers that did not respond to the first cycle, the organization of training days and the sending of incentive letters. compliance with selected issues.




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