TFS Vision by chief procurement officers
The aim of TfS is the joint development and implementation of a global assessment and audit program for responsible procurement of goods and services. In this context, TfS helps make environmental and social standards measurable and implement specific improvements.
The member companies initiated 441 audits and 1,794 assessments worldwide in 2017.
Our assessment activities in 2017
In 2017, we evaluated around 74 percent of suppliers of critical raw materials using sustainability criteria. These criteria include country risks, the supply situation, and market availability. We also used TfS assessments and audits to review further significant suppliers.
A particular focus in 2017 was the process for following up on audits and assessments. Corrective measures were initiated with 31 suppliers, where major or critical deviations were identified during audits. In 125 cases, supplier assessments showed that insufficient attention had been paid to sustainability aspects. In these cases as well, corrective action was initiated. At suppliers audited by TfS, we identified shortcomings in the implementation of environmental measures and potential for improvement in occupational safety in 2017.
No cases of child labor or forced labor were identified in on-site inspections, nor were there any cases of discrimination or restriction on the freedom of assembly. In 2017, we audited sustainability standards at 28 supplier sites and arranged for 149 sustainability assessments to be conducted by an external service provider. Active involvement in TfS is important to us. That is also evidenced by the fact that our Chief Procurement Officer continues to serve the initiative as president following his re-election in 2017. Evonik employees are members of TfS Workstreams in Germany, North and South America, and Asia.
In 2017, a TfS conference was held in Shanghai (China) and Evonik organized a conference on sustainability for suppliers in Sao Paulo (Brazil). As a member of the initiative, Evonik is also subject to TfS assessments. Our gold rating positioned us among the top 1 percent of the suppliers assessed in 2017.