Together for Sustainable Development (TFS) is a global initiative initiated and promoted by chemical companies to achieve sustainable development in the chemical industry and contribute to a better world by assessing, auditing and improving the CSR performance of the chemical industry. TFS's strategy, objectives, organization, and results have been outlined in previous articles, and this article will demonstrate the real-world impact TFS has on the sustainability of the chemical chain in practice with some specific examples.
TFS's assessment tool is a self-assessment questionnaire provided by a third-party organization, Ecovadis**, covering management, environmental, health and safety, labour and human rights, and governance, and generates a detailed assessment report for the reference and use of the company and its customers.
TFS's assessment tools can not only help companies identify and improve weaknesses in their CSR performance, increase their transparency and credibility, and reduce their risks and costs, but also motivate companies to take proactive actions to improve their environmental management and reduce their negative impact on the environment.
A case in point is a China-based chemical company that was assessed by TFS in 2018 and scored below average with a score of 38. The assessment report pointed out that the company's environmental performance was poor, with a lack of environmental management systems and policies, no environmental targets and indicators, no environmental impact assessment and monitoring, no implementation of energy conservation and emission reduction and waste management measures, and no disclosure of its environmental performance to stakeholders. The assessment report also made a series of recommendations for improvement to help the company improve its environmental management.
After accepting the assessment report, the company realized its own shortcomings, decided to adopt the recommendations of the assessment report, and formulated and implemented a set of environmental management plans, including the following aspects:
An environmental management system and policy have been established, the responsibilities and functions of environmental management have been clarified, environmental objectives and indicators have been formulated, internal audits and management reviews have been conducted on a regular basis, and the effects of environmental management have been continuously improved.
Environmental impact assessment and monitoring were carried out, major environmental aspects and risks were identified, corresponding preventive and control measures were taken, environmental parameters were regularly tested and recorded, and non-conformities were detected and corrected in a timely manner.
It has implemented measures for energy conservation, emission reduction and waste management, optimized production processes and equipment, improved energy efficiency, reduced energy consumption and emissions, and adopted recycling and waste management methods to reduce waste generation and treatment.
It disclosed its environmental performance to stakeholders, prepared an environmental report, disclosed its environmental policies, objectives, indicators, measures and results, and received feedback and suggestions from stakeholders, improving its environmental transparency and credibility.
After more than a year of hard work, the top supplier was evaluated by TFS again in 2019 and improved its score to 51 points, which is average. The assessment report acknowledges the company's progress in environmental aspects, but also points out some problems and room for improvement, such as the need to further improve the environmental management system and policies, the need to conduct environmental impact assessment and monitoring more systematically, the need to more actively implement energy conservation and emission reduction and waste management measures, and the need to disclose its environmental performance more widely to stakeholders. The company said that it will continue to improve its environmental management level in accordance with the recommendations of the assessment report and contribute to the sustainable development of the chemical industry.
TFS's audit tool is an on-site third-party audit of high-risk or low-performing vendors identified in TFS's assessment, examining their management, environmental, health and safety, labour and human rights, and governance practices, generating an audit report, proposing a corrective action plan (CAP), and monitoring their implementation.
TFS's audit tools can not only verify and promote the improvement of CSR performance, enhance their compliance and competitiveness, and strengthen their partnerships, but also promote them to adopt more active social responsibility practices, protect and respect the rights and interests of employees and communities, and bring positive impact and value to society and the environment.
A typical example is a chemical company based in India that was assessed by TFS in 2017 and scored below average with a score of 32. The assessment report found that the company performed poorly in the social aspect, lacked a management system and policy on labor and human rights, failed to set and enforce reasonable working hours and remuneration standards, failed to ensure the health and safety of employees, failed to respect employees' rights to freedom of association and collective bargaining, and failed to communicate and cooperate effectively with the community. The assessment report also made a series of recommendations for improvement to help the company improve its social responsibility.
After accepting the assessment report, the contractor was arranged to conduct a TFS audit, and the third-party agency SAI Global conducted an on-site audit to further confirm the problems found in the assessment report and put forward a corrective action plan (CAP), requiring the vendor to complete the following improvements within a certain period of time:
Establish and implement labor and human rights management systems and policies, clarify the responsibilities and functions of social responsibility, formulate goals and indicators of social responsibility, conduct regular internal audits and management reviews, and continuously improve the effect of social responsibility.
Formulate and enforce reasonable working hours and compensation standards, comply with local laws and regulations, ensure minimum wages and benefits for employees, control overtime hours for employees, pay wages and bonuses to employees in a timely manner, and maintain payroll and attendance records for employees.
Safeguard the health and safety of employees, conduct risk assessment and control, provide necessary training and equipment, establish and implement procedures for emergency response and incident reporting, conduct regular health check-ups and medical care, and improve the working environment and conditions of employees.
Respect the rights of employees to freedom of association and collective bargaining, do not discriminate against or harass any employee, do not use or tolerate any form of forced labor or child labor, protect employees' personal information and privacy, establish and implement mechanisms for employees' grievances and feedback, and solve employees' problems and demands in a timely manner.
Communicate and cooperate effectively with the community, understand and respect the culture and values of the community, assess and reduce potential impacts on the community, support the development and well-being of the community, participate in activities and projects of the community, and establish and maintain good community relations.
After six months of hard work, the company has completed all the requirements of the CAP, passed the review of TFS, and has been recognized and praised by TFS member companies, and has also improved its social responsibility level, protected and respected the rights and interests of employees and communities, and brought positive impact and value to society and the environment.
TFS audits