FMC works to identify and do business with Suppliers who aspire to conduct their business in an ethical and responsible manner that supports and respects the protection of Responsible Sourcing.
Because the suppliers we work with are vital to ensuring a responsible supply chain, FMC has a formal Supplier Selection and Approval Process. It involves the screening of all new significant contractors and raw material suppliers for their adherence to quality, safety, human rights standards and sustainability. FMC believes this program is vital to our ability to manage and mitigate supplier risk. Compliance with this process is tracked and reported in the form of Key Performance Indicators. In 2019, FMC surpassed its initial 2016 goal of 98% compliance and has reached 100%. Annual Supplier Selection and Approval Process training is provided to Global Procurement.
FMC Expectations of Raw Material Suppliers
We require all new significant chemical suppliers to complete a “Supplier Prequalification Form”, including questions on Safety and Health, Quality Management Systems, REACH, Transportation Safety/C-TPAT, Responsible Care, Sanctions Compliance, Responsible Sourcing, Sustainability and Financial Health. The new supplier must agree to comply with our Supplier Code of Conduct or be a member of the United Nations Global Compact. FMC then ranks the questionnaire responses. If the supplier does not meet all our requirements, risk mitigations will be put in place or we locate another source of supply. From these questionnaires, key performance indicators, such as the number of new raw material suppliers who have a Quality/Environmental Management System (ISO 14001/9001), a Responsible Sourcing policy, a Sustainability program, and a Responsible Care program, are collected and reported.
Given the large number of suppliers with which we work, we have partnered with Sedex, a not-for-profit risk management membership organization, to assist in assessing and auditing our current raw material suppliers. We have a similar partnership program with Avetta for significant contractors in North America with plans to expand the program into other regions in 2020. FMC’s risk management also includes assessment of suppliers for export compliance (prohibited parties, embargoes and trade sanctions) under the Office of Foreign Assets Control (OFAC) and compliance to the Foreign Corrupt Practices Act (FCPA). In 2019, Procurement, partnering with Regulatory, expanded our REACH program to ensure all material(s) imported into EU by FMC are REACH compliant. Additionally, in accordance with our Conflict Mineral Sourcing Policy, we screen all raw materials to determine if they contain any tin, tungsten, tantalum or gold (3TGs) and determine they are free of 3TGs.
On January 1, 2012, the California Transparency in Supply Chains Act of 2010 (SB 657) went into effect, 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. The disclosure is aimed at providing information to consumers, allowing them to make better, more informed choices about products they buy and the companies they support.
FMC Corporation is committed to conducting its business with honesty and integrity and complying with all applicable laws and to operate its business in an ethical, sustainable and safe manner.
Through the FMC Code of Ethics and the Supplier Code of Conduct, FMC requires its employees, contractors, and suppliers to share these same high standards.
FMC’s efforts to support the dignity of all workers include:
- A contractual commitment by its suppliers to affirmatively abide by the Supplier Code of Conduct, including the principle of freely chosen employment.
- A supplier pre-qualification process that requires suppliers to certify that the materials incorporated into the product comply with the laws regarding slavery and human trafficking of the country or countries where they are doing business.
- Training of procurement personnel on the Supplier Code of Conduct
- Employee training on protecting human rights in the supply chain.
FMC reserves the right to assess and monitor suppliers’ compliance with these requirements as needed.
The Global Procurement Group oversees the supplier qualification process and regularly evaluates and updates its procedures and processes in order to maintain these high standards in an ever changing and evolving world.
FMC Corporation and its subsidiaries (“FMC”) are committed to sourcing components and materials from companies that share our values regarding respect for human rights, integrity and environmental responsibility. FMC is committed with complying to Section 1502 of the Dodd-Frank Act, which aims to prevent the use of minerals that directly or indirectly finance or benefit armed groups in the Democratic Republic of the Congo (DRC) or in adjoining countries (“conflict minerals”).
Suppliers to FMC are required to commit to being or becoming “conflict-free” (which means that such supplier does not source conflict minerals) and sources only from conflict-free smelters. Supplier’s to FMC that are providing 3TG’s are required to provide completed EICC-GeSI declarations evidencing such supplier’s commitment to becoming conflict-free and documenting countries of origin for the tin, tantalum, tungsten, and gold that it purchases.