Our risk management program is a comprehensive framework for identifying, assessing and mitigating risks associated with our suppliers. This program recognizes the critical role our suppliers play in the success of our company and seeks to develop strategies to minimize potential disruptions and safeguard our business continuity. By proactively managing supplier risks, we are able to be more resilient, reduce the risk of financial losses, maintain our good reputation, and achieve our sustainable commitments through partnerships within our value chain.
For Solenis, sustainability is an important aspect of this program. As such, we assess the sustainability performance of our suppliers on their environmental management, health and safety practices, business ethics, and human rights.
Risk domains assessed by our risk management program include*:
- Financial
- Regulatory
- Reputational
- Sustainability, environmental and social
Our suppliers are required to enroll in our risk management program, which is administered by Global Risk Management Solutions, and pass a risk assessment. These risk assessments include environmental, social and governance (ESG) measures and are conducted throughout supplier selection, onboarding, and ongoing management to ensure our business is awarded only to suppliers that meet our requirements.
Once a supplier has enrolled in the program and entered all required information, the supplier will be able to see their risk scores, including details for each risk domain. If needed, we can support a supplier’s efforts to improve their scores.
The following graphic shows the risk assessment ratings for our direct raw material suppliers as of September 2023.
*Risk criteria assessed by Solenis vary based on supplier type and location.
