Our responsible sourcing strategy focuses on our 5 key agricultural raw materials: sugarcane, soy, corn, wheat, and palm oil, which represent ~90% of our agricultural-derived raw materials by quantity. Our approach integrates supplier policies, risk assessments, questionnaires, supplier engagement, certification, and audits.
We require all of our raw material suppliers to sign our supplier code for confirmation, or to demonstrate commitment to our code by compliance with company policies that embrace the standards included in our code. Our supplier code defines Corbion's expectations in respect of our suppliers meeting our responsible sourcing commitment. The code includes principles and criteria for business ethics, human rights and labor conditions, and environmental practices.
We evaluate all of our raw materials and suppliers on potential risks related to sustainability, as part of our annual security of supply risk assessment. In 2020, we integrated the RepRisk tool into our risk assessment. RepRisk systematically identifies material ESG risks by analyzing information from public sources and stakeholders. This tool gives us more insight into the supplier-specific risks and provides the necessary information for focused supplier engagement.
Raw materials/supplier combinations are given a risk score of high, medium or low. For high risk items, mitigation plans are developed and implemented. Mitigation actions may include supplier engagement, additional traceability investigation, SMETA audits, or identification of alternative raw materials or suppliers. Mitigation plans are updated annually to ensure continued awareness and preparation for any potential issues.
Sugarcane, oil palm, and soy cultivation has been linked to a number of serious social and environmental sustainability risks. These include forced and child labor, hazardous labor conditions, conflict over land rights, loss of biodiversity, and deforestation. For these three raw materials, we have integrated more stringent sourcing strategies to minimize the impact.
Our cane sugar suppliers sign our cane sugar code which outlines additional requirements beyond our general supplier code. The code is based on the definitions for sustainable sugar cane and derived products as set out by Bonsucro, a global non-profit, multi-stakeholder organization founded by WWF in 2005 to advance more economically, environmentally, and socially responsible sugar production. In 2020 we took steps to formalize the governance of our cane sugar code by implementing a formal auditing process, which includes a full audit of the sugar mills and supply farms every three years and an annual re-assessment. We also utilize Bonsucro certification.
Read more about our verification approach here.
For palm oil, we implement the Roundtable on Sustainable Palm Oil (RSPO) certification. We comply with the requirements outlined in RSPO's Principles and Criteria For the Production of Sustainable Palm Oil (2018) including no deforestation, no peat, and no exploitation (NDPE) and we require our suppliers to do the same. In 2020, we achieved 100% RSPO certification for palm oil and primary oleochemicals. We are now focused on certifying the rest of our palm oil raw materials. Follow our progress by reading our Annual Communication of Progress (ACOP) reports published on the RSPO website.
Please review our statement on palm oil by clicking here.
Regarding soy, we only source from US suppliers. Soy produced in the US is generally considered to pose no risk to deforestation or other conversion of natural ecosystems. The main areas of improvement relate to land use (biodiversity and soil health), water, greenhouse gas emissions, and farmer livelihoods.
Please review our statement on soy by clicking here.
Read more about our approach to sustainable agriculture here.