Green Procurement Ppt To Supplier

Project Green Procurement @ BCS –Supplier Sustainability ProgramSupplier Sustainability Program Slide 1

Topics Covered Bayer‘s key corporate values Role of Bayer‘s Procurement What is Sustainability The four pillars of our sustainability program Sustainability oriented Procurement Sustainability – An integrated element of supplier selection process Significance of SustainabilitySupplier Sustainability Program Slide 2

Bayer's values are a guiding star to combine economic successand corporate responsibility for sustainable successBayer's Values A will to succeed A passion for our stakeholders Integrity, openness andhonesty Respect for people and nature Sustainability of our actionsECONOMIC SUCCESS Necessity and will of economicalsuccess Short-term profit opportunities withunclear long-term effectsSupplier Sustainability Program Slide 3CORPORATE RESPONSIBILITYSustainableSuccess Will to act as a "good global citizen" Best possible support of ecological,societal and working-conditionstandards

Role of Bayer’s ProcurementSelection, negotiation,developmentSupplier 4000 suppliers 8 statesProcurement 40 buyers Sustainability oriented mind set– Identification of risks– Evaluation of risks– Justification of decisionsDelivery of Rs. 700 Crs 20,000 RM, PM & T&SNeed fulfillment and justification:price, quality, delivery time, etc.Business unit sub-groups:– CropScience– HealthCare– MaterialScience– BioSciencePrioritized social andenvironmental criteria based onoverall CR Strategy:e.g. Child labour, Anticorruption, etc.Supplier Sustainability Program Slide 4

What is Sustainability Sustainability is a combination of : Commercial efficiency Ecology Social commitment Bayer is committed to improve people’s quality of life throughinnovative products and services Our key corporate values include respect for people andnature and sustainability of our actions. Bayer expects its suppliers to act in accordance with itsvalues. Our supplier sustainability program aims to achievethis objective through its 4 pillar approach.Supplier Sustainability Program Slide 5

Our SSP programs rests on four pillarsSupplier Sustainability ProgramLabourStandards Freedom ofassociation oflabour No forced nAnti-Corruption& Transparency Businessshould supporthuman rights Precautionaryapproach Efforts for Anticorruptionincludingextortion andbribery No human rightabuses Abolish childlabour NodiscriminationSupplier Sustainability Program Slide 6 Promoteenvironmentalresponsibility Newtechnologydevelopment

Human Rights All human beings are born free and equal in dignity and rightsirrespective of race, colour, language, religion, political orother opinion, national or social origin, property , birth or otherstatus they have. Businesses should support and respect the protection ofinternationally proclaimed human rights within their sphere ofinfluence; and Make sure they are not complicit in human rights abuses. This aspect will carry a weightage of 20%Supplier Sustainability Program Slide 7

Labour Standards Businesses should uphold the freedom of association and theeffective recognition of the right to collective bargaining; The elimination of all forms of forced and compulsory labour; The effective abolition of child labour; and Eliminate discrimination in respect of employment andoccupation. Weightage assigned to this aspect is 30%Supplier Sustainability Program Slide 8

Environmental Protection Business should support a precautionary approach toenvironmental challenges; Support: Efficient deployment of resources and energy, Climate protection and Consumer – employee protection by developing risk freeproducts and production processes Undertake initiatives to promote greater environmentalresponsibility; and Encourage the development and diffusion of environmentallyfriendly technologies. Commit to a greener world, a better place to live Weightage assigned to this aspect is 40%Supplier Sustainability Program Slide 9

Anti Corruption & Transparency Businesses should work against corruption in all its forms,including extortion Not to bribe and do not accept bribes (including gifts, loan,fee, reward or other advantages) This also includes dealings with company personnel. Weightage assigned to this aspect is 10%Supplier Sustainability Program Slide 10

Sustainability oriented ProcurementCorporate sustainability in the value chain1 Customer requirements regardingSustainability31PRODUCER1st3tier1 ProcurementSUPPLIER2nd –n tierSUB –SUPPLIERProcurement1 alesDEPTH DEPENDING ON CR STRATEGY AND VALUE CHAIN COMPLEXITYSupplier Sustainability Program Slide 112Sales1 Customer expresses hisexpectations of CR2 Sales department has toprovide a product thatfulfills these requirements3 Producer has to adapt itsvalue chain to meet therequirementsn Supplier .

Sustainability – An integrated element of supplierselection processExample of Sustainability pyramid selection - PrioritizationOngoingtrainingNice to haveCONSEQUENCESCollaboration issuesDefinition of supplier development measures.Cetc.Salaries aboveaverageStandardCO2Definition of supplier development measures.ComplianceBWorking conditionsMusthaveAnti-Corruptionetc.No Child Labouretc.Supplier Sustainability Program Slide 12AShowstoppersUltimatum to meet requirementsTermination of supplier relationship.LowLevel of consequencePRIORITY LEVELHigh

Significance of SustainabilityFUTURECLASSICALNewCost/price performanceSustainability ance 20%Technology/R&D performanceSupplier Sustainability Program Slide 13Technology/R&D performanceDeliveryperformance

Thank you for your kind attentionSupplier Sustainability Program Slide 14

Project Green Procurement @ BCS . Procu-rement 1 PRODUCER 1st tier SUPPLIER 3 2 Sales Produc-tion Procu-rement 1 2nd –n tier Sales Produc-tion Procu-rement 1 3 2 DEPTH DEPENDING ON CR STRATEGY AND VALUE CHAIN COMPLEXITY Customer expresses his expectations of CR Sales department has to