KRONOS has implemented a due diligence and risk management program focused on our suppliers to support compliance with supply chain regulations currently in effect in Germany and Norway and those proposed in other jurisdictions including the European Union and Canada. Our program is designed to consistently evaluate environmental, social and governance/ethics (ESG) risk and impacts on our supply chain, including but not limited to human rights and working conditions.
Our sustainable procurement team uses a two-step approach when carrying out ESG due diligence assessments of our suppliers. The first step entails carrying out an initial, high-level assessment of the potential risks to which KRONOS may be exposed. This step provides us with ESG risk profiling of our suppliers based on their country and sector ESG risk statistics. Based on this initial mapping, we can identify which suppliers and business partners are linked to the potential risks. In the second step, we prioritize the most significant risks for a more detailed assessment and implement suitable measures to address risks and adverse impacts.
In performing these assessments, our sustainable procurement team uses a collaborative platform, EcoVadis, to annually assess, track and improve our suppliers’ sustainability performance. The outcome of the supply chain ESG risk analysis enables KRONOS to identify the highest ESG risks in the supply chain. If our sustainable procurement team identifies any actual adverse ESG impacts through our assessment process, we will work with the supplier to develop a corrective action plan.
