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SABIC's supplier screening process prioritizes safe working conditions, anti-corruption practices, human rights, and environmental responsibility.
SABIC sources materials and services from suppliers who meet defined standards for quality, ethical business conduct, and social and environmental responsibility, and we prioritize local suppliers wherever possible.
Through its procurement function, SABIC delivers value across purchasing activities, enhancing competitiveness and success while also advancing key objectives in innovation, growth, and sustainability. Guided by our Code of Ethics and our specific Supplier Code of Conduct, we source materials and services from qualified suppliers who meet technical, quality, EHSS, and ethical standards. Our supplier screening process supports an ethical supply chain and adherence to procurement standards, covering safe working conditions, anticorruption practices, human rights, and environmental responsibility, among other areas. Our procurement process also emphasizes localization to support SMEs and Saudi companies, strengthening Saudi Arabia's infrastructure and boosting our export potential.
TOGETHER FOR SUSTAINABILITY (tfs)
Since 2023, SABIC has been a member of Together for Sustainability (TfS), a collaborative initiative of chemical companies dedicated to advancing sustainability in the industry's supply chains. TfS assesses and audits practices against globally recognized standards for environmental stewardship, labor and human rights, ethics, and sustainable procurement. This membership provides us access to proven methodologies and tools. This year, we have concentrated our efforts in four areas:
- Enhancing suppliers'ESG performance: We evaluated 62 suppliers and audited five through EcoVadis* assessments and TfS audits, respectively. A pilot program was implemented for direct suppliers.
- Improving ESG disclosures: Our performance in EcoVadis's Sustainable Procurement pillar improved by 20 points, reaching a score of 70 out of 100.
- Contributing to TfS initiatives: We actively participated in TfS workstreams and regional initiatives, allocating resources to support the program's broader objectives.
- Driving awareness: Over 320 employees and 300 suppliers participated in ESG-focused awareness and training sessions.
* EcoVadis is a provider of business sustainability ratings. These assessments are used by TfS to evaluate the sustainability performance of suppliers
In 2024, we registered 2,238 new suppliers via our SLM program, raising the total to 27,439, while removing 8,390 suppliers for inactivity, underperformance, or noncompliance with our Supplier Code of Conduct (the markedly higher number of supplier deactivations in 2024 are primarily due to inactivity for more than five years). All suppliers undergo a financial and technical qualification process alongside SABIC's Supplier Life Cycle and Performance Management (SLM) program. Suppliers who meet our due diligence requirements are included in SABIC's global procurement and supply chain database. For higher-risk suppliers – those providing certain materials or services or performing on-site work – further assessments are conducted through TÜV and TfS-EcoVadis as needed.
| Year |
|
2024 | 2023 | 2022 | 2021 | 2020 | 2019 |
|---|---|---|---|---|---|---|---|
| New suppliers through SLM | 2,238 | 1,377 | 1,980 | 1,998 | 1,697 | 2,528 | |
| Suppliers removed from SLM | 8,390 | 42 | 81 | 206 | 465 | 732 | |
| Total suppliers through SLM | 27,439 | 33,591 | 32,254 | 30,355 | 28,563 | 27,318 | |
| Suppliers assessed through TfS-EcoVadis | 247 | 167 | |||||
| Suppliers audited through TÜV | 530 | 165 | |||||
| Suppliers qualified through TÜV | 395 | 115 |
FROM WOODEN TO PLASTIC PALLETS FOR PACKAGING AND TRANSPORT
Plastic pallets are more durable and long-lasting than wooden pallets, making them reusable and reducing the need for frequent replacements. Furthermore, their recyclability allows materials to be reclaimed and repurposed at the end of their life cycle. Together, these qualities provide some clear advantages over wooden pallets, including lower environmental impact and improved cost efficiency.
In 2021, SABIC launched a project to transition from wooden to plastic pallets, aiming for plastic pallets to make up 20% of total pallet use in our Saudi Arabian years. By 2024, we exceeded this target, with plastic pallets accounting for 26% of total use – two years ahead of schedule.
Disclaimer: This abridged interactive version of the SABIC Integrated Annual Report 2024 is based on the original PDF report published on this website. In case of any discrepancy, the original PDF report will prevail.