Sustainable procurement
Sustainable procurement
Sustainable Procurement is essential for building resilient, responsible supply chains that drive long-term value. Conducting supplier sustainability due diligence helps identify and address environmental, social and governance (ESG) risks, and ensure compliance with evolving regulations. Proactive risk management reduces disruptions and safeguards business continuity in an increasingly complex global market.
LyondellBasell (LYB) is assessing suppliers and working to improve their performance based on well-defined environmental, social and governance criteria. Our goal is to assess 80% of our key suppliers by 2027.
At LYB, our goal is to reduce scope 3 greenhouse gas emissions 30% by 2030, relative to a 2020 baseline.
Supplier sustainability due diligence
We use sustainability assessments and audits to gain insights into suppliers’ sustainability management systems. We then identify areas for improvement and prioritize efforts where they are most needed.
Our supplier sustainability due diligence process follows a structured, multi-phase approach to ensure responsible sourcing and risk management and consists of the following four phases: setting sustainability expectations, supplier sustainability risk screening, supplier sustainability assessments and audits, and corrective actions and continuous improvement.
We aim to complete supplier sustainability assessments or audits for our suppliers that are considered high or very high risk in the risk screening process, as well as our key suppliers. Our main assessment solution is EcoVadis, a globally recognized sustainability ratings platform that evaluates companies’ ESG performance. The EcoVadis assessment rates policies, actions and results.
A supplier whose EcoVadis scorecard does not meet our minimum score requirement is given the opportunity to improve performance within an appropriate timeframe.
Together for Sustainability (TfS)
We are a member of Together for Sustainability (TfS), a flagship initiative launched by companies in our industry that helps drive sustainability in our supply chains through collaboration and a shared infrastructure.
We believe capacity building is crucial to creating a positive impact throughout our supply chain. To strengthen sustainability knowledge and practices, we offer our suppliers access to the TfS Academy free of charge. It provides training and resources on labor, human rights and other sustainability topics in various languages.
Reducing greenhouse gas emissions in our supply chain
We are focused not only on reducing emissions in our own operations, but also on collaborating across the value chain. Our approach to reducing Scope 3 emissions is centered on engaging with our suppliers, using alternative feedstocks and fuels, and our exit from the refining business. Our efforts to reduce Scope 3 emissions enable us to offer lower-carbon products that help our customers reduce their Scope 3 emissions, for example with our CirculenRenew polymers sourced from bio-based feedstocks.
At LYB, our goal is to reduce Scope 3 emissions 30% by 2030, relative to a 2020 baseline. Collaborating with feedstocks, raw materials, and logistics suppliers helps us better understand product carbon footprints and identify reduction opportunities. We promote international industry guidelines, such as the TfS Product Carbon Footprint guidance and the Global Logistics Emissions Council (GLEC) Framework, to harmonize Scope 3 accounting across the value chain.