In today's globalized market, companies must not only pursue economic benefits, but also social responsibility (CSR), that is, focus on environmental, social and governance (ESG) impact and contribution in business activities. To achieve this, leading companies in the chemical industry have joined forces to launch an initiative, Together for Sustainable Development (TFS), which aims to improve the sustainability of the chemical chain and contribute to a better world. This article will provide an overview of TFS's strategy, objectives, organization, and outcomes to demonstrate its role and value in driving the chemical industry to achieve its CSR goals.
Based on the United Nations Global Compact and Responsible Care principles, TFS's strategy is to evaluate, audit and improve the CSR performance of chemical companies and their suppliers by establishing a set of globally applicable frameworks and tools, so as to improve the ESG performance of the chemical industry chain and contribute to the achievement of the United Nations Sustainable Development Goals (SDGs). The TFS framework and tools consist of two main components, the TFS Assessment and the TFS Audit.
The TFS assessment is a first-class self-assessment questionnaire covering management, environmental, health and safety, labour and human rights, and governance issues, which is analysed and scored by a third-party organization, Ecovadis, to produce a detailed assessment report for the reference and use of the business and its customers. The purpose of the TFS assessment is to help companies identify and improve weaknesses in their CSR performance, increase their transparency and credibility, and reduce their risks and costs.
A TFS audit is an on-site third-party audit that examines the management, environment, health and safety, labor and human rights, and governance of high-risk or low-performing vendors identified in the TFS assessment, generates an audit report, proposes a corrective action plan (CAP), and monitors their implementation. The purpose of TFS audits is to verify and promote the improvement of CSR performance, enhance their compliance and competitiveness, and strengthen their partnerships.
The framework and tools of TFS follow the principle of "one assessment audit, shared by multiple parties", that is, a leading provider only needs to complete a TFS assessment or TFS audit, and the results can be viewed and used by all TFS member companies, avoiding duplication and redundant work, saving time and resources, and improving efficiency and effectiveness.
TFS's goal is to promote a climate-protecting, safe and ethical chemical industry that supports the UN Global Compact and the SDGs. To measure its progress and results, TFS has developed a series of Key Performance Indicators (KPIS), including:
Participation: Refers to the degree of participation of TFS member companies in TFS assessment and TFS audit, reflecting the influence and coverage of TFS.
Degree of improvement: refers to the degree of improvement in the CSR performance of the leading company triggered by the TFS assessment and TFS audit, which reflects the effectiveness and value of TFS.
Contribution: Refers to the degree of contribution of the SDGS corresponding to the TFS assessment and TFS audit, which reflects the responsibility and mission of TFS.
According to TFS's latest annual report, in 2020, TFS completed a total of 3,910 TFS assessments and 167 TFS audits, covering 67 countries and regions around the world, involving 14 SDGs, showing TFS's continuous efforts and remarkable results in promoting the sustainable development of the chemical chain.
TFS is an international not-for-profit association consisting of the Chief Procurement Officers of its member companies, the TFS General Assembly, which elects a President and Steering Committee to set the direction and strategy of TFS and ensure the development and innovation of TFS. The TFS Secretariat, located in Brussels, Belgium, is responsible for managing and supporting the day-to-day operations and activities of TFS. TFS also has regional operating committees in Asia Pacific, Latin America and North America to provide training and support to member companies and businesses with local knowledge and language capabilities.
TFS currently has 29 member companies, all of which are the world's leading chemical companies, including Bayer, BASF, Dow, DuPont, ExxonMobil, Shell, etc., with global annual revenues of more than 800 billion euros and global expenditures of more than 500 billion euros. TFS member companies are committed to improving their CSR performance and those of their suppliers through TFS assessments and TFS audits, and jointly shaping the future of the chemical industry.
Since its inception in 2011, TFS has achieved a number of results, including:
A global, industry-leading, and reliable CSR assessment and audit framework and tools have been established to provide standards and guidelines for the sustainable development of the chemical chain.
It has created a strong, impactful, and collaborative TFS community that provides a platform for chemical companies and companies to exchange and learn, share best practices, drive improvements, and achieve win-win results.
It promotes the transparency and traceability of the chemical chain, reduces risks and costs, improves efficiency and effectiveness, enhances competitiveness and cooperation, and enhances reputation and brand.
It has contributed to the progress of climate protection, safety, compliance, and innovation in the chemical industry, supported the realization of the United Nations Global Compact and SDGs, and brought positive impact and value to society and the environment.
CSR Corporate Social Responsibility