Supplier Sustainability Policy
Our Supplier Sustainability Policy builds upon our Global Supplier Code of Conduct by establishing expectations for sustainability within our supply chain.
PPG's mission is to protect and beautify the world. We will partially attain this goal by sharpening our focus on sustainability. This approach will help ensure the success and long-term existence of our company for the benefit of our customers, employees, shareholders, communities and suppliers. We will act in a way that ensures the longevity and resilience of our environment, our economies and our society.
This policy reinforces our expectations that our suppliers, as well as their subcontractors, will comply fully with applicable laws and adhere to internationally recognized environmental, social and corporate-governance standards. PPG's preferred supplier criteria includes vendors that demonstrate world-class sustainability practices and marked improvements regarding their respective organization’s sustainability. Each supplier must evaluate and maintain sustainable processes and raw material sources throughout their supply chain and supplier base. We also encourage our suppliers to innovate and develop new products requiring less intensive material and energy consumption, along with leveraging their collective strengths to help us meet our sustainability goals.
We believe that our Company and communities benefit when we provide equal opportunities for diverse suppliers to compete for new and current business opportunities. By including qualified diverse suppliers in the purchasing process to provide products and services that meet our requirements, PPG will strengthen the position of our suppliers, customers, and our own organization. Our vision is to operate a world-class supplier diversity program, recognizing all people and representing One PPG. We are committed to economically empowering disadvantaged and underrepresented businesses by providing a level playing field and an environment for all to compete for PPG business opportunities.
To support our supplier sustainability program, PPG has engaged EcoVadis™, a leading global corporate social responsibility and sustainability ratings company, to leverage assessment processes, tools, resources and insights to drive sustainability standards and practices throughout PPG's global supply base. This enables us to evaluate our suppliers on the following categories on subjects that include, but are not limited to:
- Environment: Energy consumption, product use, customer health and safety, recycling, soil quality, noise emissions, and biodiversity (land use and deforestation)
- Labor and human rights: Employee health and safety, working conditions, child labor, forced labor, human trafficking, diversity, discrimination and harassment
- Ethics: Corruption and anticompetitive practices
- Sustainable procurement: Supplier environmental and social practices
The EcoVadis sustainability intelligence suite assists PPG in providing broad-scale supply chain risk screening and mapping, more reliable supplier sustainability metric scorecards with actionable ratings, and complete audit and improvement management capabilities. This evaluation will help to ensure PPG suppliers around the world are equally as committed to sustainability.
In addition, suppliers are a focus of our human rights due diligence process. We evaluate their commitment and adherence to human rights through our supplier onboarding process, assessments of our top suppliers globally and annual audits of selected suppliers.
We are also an active member of the RESPONSIBLE MICA INITIATIVE® (“RMI”), which aims to mobilize the supply chain to eradicate child labor in India’s mica mines through traceability efforts and community-building activities. RMI’s holistic approach implements three program pillars simultaneously:
- Mica supply chain mapping and workplace standards for mica collection and processing;
- Community empowerment, including improved educational resources and alternative means of livelihood, in villages that provide the mica workforce; and
- Legal frameworks for the mica sector.
Additional information about the steps we have taken to ensure human rights are respected in our own operations and within our supply chain can be found in our California Transparency in Supply Chains Act Statement, Modern Slavery and Human Trafficking Statement (TISC for PPG Architectural Coatings UK Limited and TISC for PPG Industries (UK) Limited) and Global Supplier Code of Conduct available at PPG.com.
Employees, suppliers and other third parties can anonymously report suspected human rights violations within our operations and those of our suppliers through the PPG Ethics Helpline. The helpline is managed by an independent, third-party firm, and we investigate each allegation thoroughly and fairly. In the event of any non-compliant activity or violation of the code, the supplier may be required to provide a detailed corrective action plan to address the deficiency. If corrective action plans do not remediate the deficiency or the supplier cannot demonstrate compliance with the code, we reserve the right to terminate any agreement or relationship with any supplier.