Guidelines for responsible procurement and supplier selection

INTRODUCTION

Slalom is an innovative company that designs and manufactures, with the support of all-Italian consolidated partners, sound-absorbing products for indoor environments.
As explicitly stated in its Code of Ethics, Slalom is aware of the importance and responsibility that carrying out its business activities entails towards the market and the end users of the products and services it promotes.
Slalom is also aware that the decisions taken when purchasing goods and services and the possibility of influencing partners and suppliers offer a greater opportunity for positive change than it could be achieved by acting only on areas under direct operational control.
This document aims to provide guidelines to support the procurement process and the selection of suppliers from a responsible perspective, pursuing the ultimate goal of contributing to sustainable development.

OBJECTIVES

Through this guideline document, Slalom recognises the importance of using ESG parameters for the evaluation and selection of its suppliers and commits to adopting a Responsible Supply Chain Policy to be disseminated and shared with its partners that includes these parameters in order to fully integrate sustainability into its purchasing processes.

SOME DATA

Slalom has over time built strong relationships with its suppliers, some of whom represent long-standing partners. Considering the suppliers who account for more than 90% in terms of revenue (2022 data), here are some figures from a recent internal survey.
40% of suppliers have ISO 9001 company certification, relating to their quality management system. The standard represents the reference for an organisation that intends to plan, implement, monitor and improve both operational and support processes, designing and implementing the quality management system as a means to achieve objectives.
The survey covered both company and product certifications. Among the product certifications held by suppliers, we find both certifications and labels relating to the specific material and product, as well as performance certifications, especially in the environmental and acoustic fields.
40% of suppliers have at least one product certification, 20% have at least 3.
The most widespread product-related certifications among the suppliers in question are:

– Global Recycled Standards (held by 20%)

– OEKO – TEX STANDRAD 100 (held by 20%)

To date, only 20% of suppliers hold both company and product certifications. Slalom is committed to encouraging its suppliers to adopt sustainable ESG systems and practices, including company certifications and attestations.

GENERAL EVALUATION PARAMETERS FOR SUPPLIER SELECTION

In accordance with the concept – contained in ISO 20400 – of sustainable procurement, i.e. procurement that generates the most positive social, environmental and economic impacts possible throughout the entire life cycle of products and services and that aims to minimise negative impacts,
In the purchasing process, of goods and services, the following elements are positively evaluated:
Real purchase need
Short supply chain and proximity
Possession of certifications/labelling
Presence of company certificates
Sustainability reporting

SELECTIVE ESG CRITERIA AND INSTRUMENTS

The evaluation parameters listed above are implemented in different tools and elements, which are used and recognised internationally. Below is a list of the elements and tools that have been positively evaluated in supplier selection. The list is to be considered indicative but not exhaustive and will be periodically updated and revised.

Company certifications based on international norms and standards:
SA8000 certification [Social Accountability]: respect for human rights, workers’ rights, protection against the exploitation of minors, guarantees of safety and health in the workplace.
ISO 45001 [health and safety]: Occupational Health and Safety Management System (previous certification OHSAS 18001 (Occupational Health and Safety Assessment Series).
ISO 14001 [environment]: International Organization for Standardization (ISO) technical standard on environmental management systems (EMS) that sets out the requirements for an environmental management system of any organisation. This standard can be used for certification, self-declaration or simply as a guideline to establish, implement and improve an environmental management system.
ISO 9001 [quality]: is the reference standard for an organisation that intends to plan, implement, monitor, and improve both operational and support processes, designing and implementing the quality management system as a means to achieve objectives.
ISO 50001 [energy]: specifies the requirements for creating, initiating, maintaining and improving an energy management system. The objective of such a system is to enable an organisation to pursue, with a systematic approach, the continuous improvement of its energy performance, including energy efficiency as well as energy consumption and use.
EMAS European Regulation (compliant with ISO 9001): EMAS (Eco-Management and Audit Scheme) registration is a voluntary environmental certification tool for companies and public bodies to assess, report and improve environmental performance.
Environmental certifications (physical location):
LEED (Leadership in Energy and Environmental Design): is an assessment system that provides the methodology and tools needed to perform a holistic analysis of a building’s sustainability performance. LEED certification covers the building system in its entirety. LEED envisages the assignment of a score linked to the achievement of credits, depending on the score range achieved, the level of certification obtained is derived from the basic Certified level to Silver, to Gold up to Platinum level.
BREEAM: is the British sustainability protocol founded in 1990. Building Research Establishment Environmental Assessment Method, the BREEAM certification ranges from residential to commercial, from schools to retail, from offices to prisons and pursues the analysis and assessment of the environmental impacts of buildings in a holistic manner.
WELL: WELL certification protocol is specifically designed to verify and certify the level of health and well-being of those living in the built environment. It is based on measuring, certifying and monitoring all aspects of the building that may impact on the health and wellbeing of the occupants.

Company attestations and sustainability rating systems:

Benefit Corporation: Benefit Corporation is a legal status – admitted in Italy (as of 1 January 2016) – designed for for-profit companies that want to go beyond the goal of profit and want to maximise their positive impact on society and the environment. B-Corp: B Corporation® (or B Corp®) is a certification awarded to companies by B Lab, an international non-profit body. To obtain and maintain the certification, companies must achieve a minimum score on a questionnaire analysing their environmental and social performance and integrate their commitment to stakeholders into their statutory documents, e.g., by adopting the legal status of a Benefit Corporation.
SRG Standard 88088:20: Social Responsibility and Governance® is the basic structure of the certification scheme accredited by Accredia. Sustainability management system certification is an independent third-party assessment, which verifies and certifies the path to sustainability for the protection of the Planet, Population and Economy.
4sustainability® is an innovative implementation framework that guarantees the sustainability performance of the fashion & luxury supply chain. It provides for the fulfilment of strict requirements aligned to the SDGs and the GFA (Global Fashion Agenda) on which constant monitoring is exercised.
EcoVadis: private body dealing with environmental sustainability assessments.
Additional company certificates/certifications issued by third parties are positively evaluated.

Corporate Sustainability Reporting:

Sustainability Report: corporate reporting document in which a company communicates to its stakeholders its ESG performance and any progress made in the environmental, social and governance spheres.
Annual Benefit Report: document drawn up by the Benefit Corporation describing the methods used to create the common benefit, the objectives achieved or the reasons why they were not achieved, as well as the definition of further objectives to be pursued in the following year.

Non-financial disclosure statement, or other ESG reporting documents.

Criteri Ambientali Minimi Compliance with the Criteri Ambientali Minimi (CAM), i.e., « the environmental requirements defined for the various phases of the purchasing process, aimed at identifying the best design solution, product or service from an environmental point of view along the life cycle, taking into account market availability », identified by Italian legislation.

Labelling and other product and supply chain related certifications

Considering the great variety and heterogeneity of actors involved in production processes, it is useful to turn to the European Product Policy, the IPP (Integrated Product Policy) adopted in 2008 by the European Community, which has generated a set of voluntary and mandatory tools that can be used to achieve environmental reduction and improvement objectives. The IPP applies at Community level. Furthermore, the environmental labels considered below can refer to the UNI EN ISO 14020 standard that identifies the characteristics and requirements for their use. In accordance with the ISO 14020 group of standards, the labels considered should fall into the following categories:

– Performance-based Environmental Labelling
– Self-Declared Environmental Assertions
– Environmental Product Declarations for Full Assessment Purposes
– Product Declarations.

Possession or use of ethical claims may also be considered as rewarding criteria, provided these explicitly refer to the specific international standard ISO/TS 17033.
The following tables show some examples of product and supply chain certifications and labelling examples considered positively in the supplier selection process.

Bio PVC /PET, PLA

Bioplastics are composed in whole or in part of renewable biological resources. The

properties of bioplastics can vary greatly from material to material. Bio-based or

partially bio-based resistant plastics, so-called ‘drop-in bioplastics’, such as PE, PET or

PVC, possess properties identical to their conventional versions. These bioplastics

cannot be distinguished from conventional plastics except through scientific analysis.

FSC

The Forest Stewardship Council (FSC) is a globally recognised certification system with

millions of hectares of forests certified according to its forest conservation standards.

The performance-based standards include environmental, social and economic values,

and are designed to ensure that forests are managed sustainably.

FWF

Fair Wear certified clothing companies have transparent and open business practices.

Fair Wear certification means that a brand is a member of Fair Wear and actively works

to improve the working conditions of people in the garment industry.

GOTS

GOTS is recognised as the world’s leading processing standard for textiles made from

organic fibres. Only textile products containing a minimum of 70 per cent organic fibres

can become GOTS certified. All chemical inputs such as dyes and auxiliaries used must

meet certain environmental and toxicological criteria.

TCO

TCO Certified is the world’s most comprehensive sustainability certification for IT

products, helping you to make responsible product choices that steer the industry in a

sustainable direction. Using TCO Certified also supports your organisation’s efforts to

reduce risks and take the next step in social and environmental responsibility.

Supply chain:

Ecocert Fair

Trade

Ecocert is an inspection and certification body created in France in 1991. Since its

creation, Ecocert has specialised in the certification of organic farming products

Organic Fair

Trade &

Organic

Solidarity

The ‘Organic fair trade’ label was created in 2000 for companies working with

organised producers in developing countries.

Conditions for using the label: the organisation must be associated with Bio

Partenaire; the organisation must be certified according to ESR standards; the

product must be certified according to ESR and organic standards.

Fair For Life

The Fair for Life programme, created in 2006, is the result of a collaboration

between the certification body IMO (Institut for Marketecology) and Bio-

Foundation. IMO is a body particularly active in the field of green production,

organic farming and environmental management systems Fair for Life combines

three types of requirements: organic farming, corporate social responsibility and

Fair Trade.

Fairtrade

International

/ Fair Trade

Usa

Fairtrade International acts to support the improvement of living conditions for

producers in Southern countries and to change the rules of world trade. Participates

in major international conferences on development issues, biodiversity protection

and global warming.

Forest

Garden

Products

This particular agro-forestry model serves to encourage the recovery of deforested

and degraded areas, offering populations new sources of income, food and other

basic needs. This farming method aims to preserve water and soil, control pests,

encourage biodiversity and the recovery of the nutrient cycle.

Naturland

Fair

A product can be certified ‘Naturland Fair’ when the percentage of raw materials

from Fair Trade sources exceeds 50 per cent (dry weight) of the product and there

is evidence that the remaining raw materials are not available from Fair Trade.

Small

Producers’

Symbol

The continental network CLAC (Latin American and Caribbean Network of Fair

Trade Small Producers and Workers), has decided to create its own brand, Small

Producers’ Symbol.

World Fair

Trade

Organization

This product label can only be used by WFTO members who have successfully

passed the first external audit.

In cases where the product contains mainly ingredients from another WFTO

member, the Fair Trade organisation supplying the product may be indicated

together with further information on the organisation marketing it.

Environmental Performance Labelling

Ecolabel

The EU Ecolabel is the European Union’s eco-label for products and services

that, while providing high performance standards, are characterised by a

reduced environmental impact during their entire life cycle.

Der Blaue

Engel

It is an environmental label developed in Germany that has been awarded to

particularly environmentally friendly products and services since 1978. The

owner of the label is the Federal Ministry for the Environment, Nature

Conservation, Building and Nuclear Safety.

Green Seal

USA

Green Seal is a non-profit organisation for the development and certification

of environmental standards. Its flagship programme is the certification of

products and services. Certification is based on the Green Seal standards,

which contain performance, health and sustainability criteria.

RWS, RMS,

RAS

The Responsible Wool Standard (RWS) is a voluntary certification developed

by Textile Exchange and is part of the Responsible Animal Fibre (RAF)

standard. RAF is the most important standard for the certification of products

containing responsibly raised animal fibres. It brought together the RWS

(Responsible Wool Standard), RMS (Responsible Mohair Standard) and RAS

(Responsible Alpaca Standard).

Nordic

swan

ecolabel

The Nordic Swan eco-label is an environmental labelling system that certifies

that a product or service complies with certain requirements.

Environmental Product Declarations for full assessment purposes

EPD

Is a declaration of the environmental performance of a product or service: this

declaration follows the voluntary certification scheme expressed by the ISO

14025 standard (« Environmental labels and declarations – Type III

environmental declarations ») and, for construction, also by the EN 15804

standard (« Sustainability of construction – Environmental product declarations

– Framework rules for development by product category »).

Greentag

Global GreenTag operates an ISO 14025-compliant Environmental Product

Declaration (EPD) programme.

The LCA life cycle-based declaration is issued as an ISO 14025 compliant EPD.

Other environmental labelling or industry certifications

PEFC

The Programme for the Endorsement of Forest Certification schemes is a

certification organisation for sustainable forest management.

Oeko-Tex

STANDARD 100 by OEKO-TEX® is an internationally uniform and independent

testing and certification system for raw materials, semi-finished and finished

textile products at every level of processing, as well as for the ancillary materials

used.

GRS – Global

Recycled

Standard

The GRS standard recognises the importance of recycling for the growth of a

sustainable production and consumption model, with the aim of encouraging

the reduction of resource consumption (virgin raw materials, water and energy)

and increasing the quality of recycled products.

PSV – Plastica

seconda vita

The ‘Plastica Seconda Vita’ (PSV) label is an environmental certification system

for products derived from the processing of plastic waste recovered from

separate collection or industrial waste.

REmade in

Italy

REmade in Italy is a certification on the content of recycled material within a

given product. It certifies the recycled content of products (at least 10% of the

total product weight).

Certifications related to product performance and compliance with building component

regulations, including e.g., CAM (Criteri Ambientali Minimi)

Indoor Air

Comfort –

eurofins

The Indoor Air Comfort Gold tool certifies that the product’s emissions meet the

criteria of many of the voluntary specifications issued by the most relevant ecolabels,

EU specifications and requirements for sustainable building certification,

including building CAM.

Greenguard

GREENGUARD certification ensures that a product meets some of the world’s

most stringent and comprehensive standards for low emissions of Volatile

Organic Compounds (VOC) into indoor air.

Indoor air

quality

Certification system for indoor products certifying the fulfilment of reduced

VOC emissions indoors.

HPD

The Health Product Declaration (HPD) standard provides a framework for

product manufacturers and their ingredient suppliers to report and disclose

product and associated health information. The HPD Open Standard is a

voluntary stakeholder standard governed by the HPD Collaborative, a nonprofit

organisation.

Intertek –

clean air

gold

Intertek’s Clean Air programme independently tests and certifies products with

low VOC standards that are recognised by sustainability initiatives including,

but not limited to, LEED, WELL and BIFMA e3.

REACH

compliant

REACH compliant symbol certifies compliance with the standards set out in

REACH (Registration, Evaluation, Authorization and Restriction of Chemicals

European Union Regulation (EC) 1907/2006. REACH defines rules for

producers and importers of substances in quantities equal to or greater than 1

tonne/year, downstream users of substances as well as producers and

importers of articles operating in the European Economic Area.

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