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Goal: Management of Legal & Regulatory Environment
Dimension: Ethics and Governance
Engage suppliers and service providers annually representing 50% of the Company's total procurement and supply chain expenditures and assess their commitment to and performance in key ESG areas
Overview
GRI 103-1, 103-2 Procurement Practices; GRI 103-1, 103-2 Supplier Environmental Assessmentl GRI 205-2, 308-1
CF’s supply chain includes local, regional and global partners from whom we purchase products and services, including natural gas, transportation, utilities, maintenance services and capital equipment. We ask all suppliers to abide by the CF Industries Third Party Code of Corporate Conduct as part of the purchase agreements. Suppliers, especially those of chemicals and other hazardous materials, are held to the same EHS standards as our internal operations. For this reason, comprehensive screening of our suppliers is critical. We work with third parties in Canada, the UK and the United States to assist us with supplier screening and evaluation to ensure that:
- They meet the same EHS standards that we use for our internal operations and
- They abide by the CF Industries Third Party Code of Corporate Conduct, which is required in our purchase agreements.
At the completion of a job, we use performance scorecards to assess the supplier and then offer coaching to help them improve.
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Assessing Goals of our Supply Chain
In 2021, CF Industries will, for the first time, conduct a survey assessing where our suppliers are on their sustainability journeys. We will send key suppliers a questionnaire about their emissions reduction goals, harassment policies, child labor policies, and other topics related to CF’s new ESG goals.