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Sustainable Sourcing Statement

FMC’s Rigorous Supply Chain Management

As a member of the United Nations Global Compact, FMC has set high standards for the way we conduct business in the areas of environmental, social, and governance (ESG), and we expect our suppliers to conduct their business with similar standards.

Through our Sustainable Sourcing Statement, FMC is committed to:

 

  • Conducting business with our suppliers with honesty and integrity, complying with all applicable laws, and to operate our business in an ethical, sustainable, and safe manner.
  • Sourcing products and services that comply with business requirements, while assessing and managing environmental, social, ethical, and economic impacts.
  • Regularly screening/assessing suppliers for their adherence to our requirements and establishing corrective actions as needed.

FMC’s Supplier Code of Conduct and Supplier Selection and Approval Process are the foundations of our Sustainable Sourcing Statement. The Supplier Code of Conduct sets out our expectations of suppliers in terms of ethics and legal requirements, human dignity and labor, and environment, health, and safety. The Supplier Code of Conduct applies to all our suppliers. We require all FMC suppliers comply with it and aspire to integrate into their business, policies, and internal processes. We further encourage suppliers to be a member of the United Nations Global Compact and enact its principles into their businesses wherever they have a presence.



FMC’s Supplier Selection and Approval Process sets out the requirements for due diligence, background screening, and third-party risk assessments on prospective suppliers, in the areas of, including but not limited to, Safety and Health, Quality Management Systems, REACH, Transportation Safety/C-TPAT, Responsible Care, Sanctions Compliance, Responsible Sourcing, Sustainability, and Financial Health.



Based on supplier’s strategic and operational importance, additional assessments for environmental, social, and governance (ESG) and risk are conducted. These consider such supplier’s geographic location and materiality of their goods or services to our business, among other important factors.



Through the above assessment processes, improvement opportunities for our suppliers are identified and FMC works with suppliers to determine corrective actions. Our suppliers’ ESG performance is verified by an external sustainability rater appointed by FMC.



We provide training to our procurement teams on our Supplier Code of Conduct and Supplier Selection and Approval Process, to enable regular engagement with suppliers. We provide additional training on relevant topics as identified under our continuous review.



The FMC Global Procurement Group has stewardship of our Supplier Code of Conduct and Supplier Selection and Approval process, and regularly evaluates, updates, and provides training to employees on its procedures and processes to maintain high standards, and incorporate regulatory changes as needed.

FMC is committed to complying with the following:

 

  • Section 1502 of the Dodd-Frank Act, which aims to prevent the use of minerals (such as tin, tantalum, tungsten, and gold) (3TGs) that directly or indirectly finance, or benefit armed groups in the Democratic Republic of the Congo (DRC) or in adjoining countries (“conflict minerals”).
    • FMC requires suppliers to commit to not source conflict minerals, and suppliers providing 3TG’s are required to provide completed EICC-GeSi declarations to evidence their conflict-free commitment.
  • The California Transparency in Supply Chains Act of 2010 (SB 657), requiring retailers and manufacturers above a certain size doing business in California to disclose measures used to track possible slavery and human trafficking in their supply chains.
  • United Kingdom’s Modern Slavery Act 2015 requiring entities to make provision about slavery, servitude and forced or compulsory labor and about human trafficking, including provision for the protection of victims; to make provision for an Independent Anti-slavery Commissioner; and for connected purposes.
  • Australia’s Modern Slavery Act 2018 requiring some entities to report on the risks of modern slavery in their operations and supply chains and actions to address those risks, and for related purposes.

We expect our suppliers to comply with the above legislations and all relevant legal requirements. Where FMC’s compliance standards are stricter than the requirements at law, we expect suppliers to adhere to the more stringent standards.



Environment and Climate Change

FMC is committed to reducing our environmental footprint and continue to pursue aggressive goals relating to net-zero greenhouse gas emissions, water stewardship and driving 100% of our waste to beneficial reuse. As we work to reach our approved science-based targets (SBT) developed via the Science-Based Targets Initiative (SBTi) and long-term goal of net-zero by 2035, we expect our suppliers to measure and report their greenhouse gas emissions, at least annually, in connection with their operations (Scopes 1 and 2) and across their value chain (Scope 3).



Our suppliers are highly encouraged to increase their environmental commitment by establishing reduction goals or their SBT publicly, other environmental initiatives beyond carbon, such as those impacting biodiversity, pollution, waste, circularity and plastics, and report to international reporting frameworks.



Health and Safety



At FMC, safety is a core value, and we expect our suppliers to align with our mission to strive for an injury-free workplace and regular and transparent reporting of safety metrics.



Labor and Human Dignity



FMC Corporation is committed to the protection and advancement of human rights. We hold a firm belief that the protection and advancement of human rights is a core element of business sustainability. FMC endorses, supports, and promotes the principles within the Universal Declaration of Human Rights and the conventions and core labor standards of the International Labor Organization. Suppliers are expected to protect the human rights of their employees and within the communities in which they operate.



Ethics and Legal Requirements



Integrity is a core value at FMC. We are committed to conducting our business with honesty and integrity and complying with all applicable laws. We expect our suppliers to conduct their business in a legal and ethical manner and act with integrity, even in places where enforcement is weak.



Supplier Diversity



Diversity, Equity, and Inclusion (DEI) are core to who we are at FMC. Business and community impact is one of the five key areas of our DEI strategies and encourages FMC to deepen and expand our relationships with diverse customers, suppliers, and community and industry partners. We encourage our suppliers to identify areas in which they can have a positive impact in the communities they operate, as part of their Corporate Social Responsibility.



For more information on policies mentioned and related to the sustainable sourcing statement above, please see visit FMC Corporate webpage at: www.fmc.com/sustainability/policies-and-positions



FMC Supplier Code of Conduct

FMC Code of Ethics and Business Conduct

FMC Policy on Human Rights

FMC Policy on Environment, Health, and Safety

FMC Conflict Minerals Policy

Our Care for the Planet