Indorama Ventures Supply Chain Strategy
Notes on the IVL’s Supply Chain Strategy
1 IVL is monitoring best practice and reviewing studies and will pursue opportunities to substitute raw materials based on fossil fuels when the overall sustainability case for substitution is clear, from GHG, human health, and biodiversity perspectives.
- Addressing on the company’s awareness on ESG in its supply chain
As sustainability has prevailed and been raised globally, IVL responds to the changing trend by clearly addressing ESG awareness and consciousness in the entire supply chain to ensure its sustainability-oriented process. IVL has developed a comprehensive policy on its way to world class sourcing with a focus on sustainability. The company systematically integrates sustainable initiatives into not only supply chain strategy, but also its holistic business thinking.
- Communicating its strategic commitments for sustainable future in supply chain
The company communicates on its long-standing strategic commitment that reflects comprehensive approach on supply chain, internally and externally. For internal operation, we certify that our upstream to downstream processes will be embedded with sustainability. Externally, we will make sure that interactions with other agencies will comply with the same principle.
- Outreaching sustainability to external stakeholders, communities, and societies
This commitment will include the whole procurement process as well as guidance on our supplier Code of Conduct reflecting our caliber in controlling supply relationships and in making sure that our suppliers’ contribute to sustainable development transparent. Not only IVL, but suppliers are also expected to maintain management systems and controls to promote and facilitate compliance with applicable laws and principles. Communities and societies will positively impacted by operations.
- Innovating sustainable and environmentally-friendly supply chain
The sustainable approach will be developed and innovated through engagement and support of IVL’s suppliers and partners. An efficient supply chain is vital for businesses to deliver their products to the consumers. As the global marketplace continues to evolve, supply chain management needs to be enhanced to be more innovatively and proactively to balance product flow and costs throughout a product’s life cycle. We believe that innovation can greatly impact supply chain performance through product design, sourcing materials including sustainable sourcing of renewable raw materials, substitution of raw materials based on fossil fuels with natural or bio-based raw materials1, raw materials with low toxicity, manufacturing products.
- Evaluating and managing risks
The company continuously evaluates and manages risks across end-to-end supply chain for development and implementation of effective business risk strategy. IVL ensures that all emerging risks will be properly mitigated through developed diagnostic tools, mechanisms and resources dedicated to the resilience of industrial systems and the environments in which we operate.
- Ongoing process of continuous improvement of the company’s supply chain
The company makes sure that we will maintain our management in an environmentally responsible manner. We will continuously identify and manage to improve our practices processes and products to reduce their risk and impact throughout the product life cycle. We will also seek opportunities to make our new and existing facilities inherently safer.