We recently had a client with a mature EHS Management System. They have a Global EHS Policy, Global EHS programs that address their risks, and processes that align with the Plan-Do-Check-Act management cycle. However, when asked about their top risks and improvement opportunities, the challenge of measuring and improving subcontractors’ and other supply chain network partners’ EHS performance was raised. Our client expressed their exasperation related to EHS incidents with sub-contractors and the complexity of EHS governance across their suppliers. To describe its complexity, here are some of the most common challenges our clients face in this area:
- Ensuring compliance across a complicated global supply chain which can be resource-intensive.
- Understanding various regulatory requirements across different regions.
- Lacking visibility to EHS performance and ensuring that suppliers adhere to EHS requirements.
- Standardizing and aggregating data for measurable analysis and benchmarking.
So, how can we account for the EHS performance of our ever-expanding network of suppliers, sub-contractors, and partners?
- Develop a supplier code of conduct that includes EHS requirements and ensure that EHS expectations are clearly communicated.
- Maintain a proactive regulatory monitoring system. Adapt EHS practices accordingly and communicate changes to suppliers promptly.
- Implement an EHS observation system that includes monitoring of sub-contractors’ EHS performance and providing incentives to foster an EHS and sustainability culture.
- Conduct third-party audits to verify EHS compliance. Perform remote audits when applicable and periodic on-site audits for critical suppliers.
- Develop standardized EHS reporting templates and metrics and provide clear guidelines to suppliers on data submission. Implement a centralized EHS data repository and provide access to suppliers to ensure consistency and ease of analysis.
- Facilitate regular communication through meetings, training sessions, and forums.
- Prioritize EHS initiatives based on risk assessments. Collaborate with suppliers to allocate resources effectively. Establish a shared responsibility for EHS improvements and provide support where needed.
Our client implemented a combination of these solutions, and they can confidently claim that their robust EHS management system spans the entire supply chain. As EHS professionals, it’s important that we correct and prevent non-compliances that we observe, but it’s also equally as important to reward good EHS behaviors. To do this, our client implemented a program to recognize and reward suppliers and partners that demonstrated exceptional EHS performance and a commitment to sustainability goals. Incentive programs raise awareness about EHS practices, motivate employees to work safely and as a team, and provide positive reinforcement for the establishment of a culture of safety. Collaboration, communication, and incentivization are extremely important in driving EHS performance throughout the global supply chain. We at the Catalyst Group can help you drive continuous improvement in these key areas.
If you’d like to learn more about our services, please send us a message, and one of our SMEs will respond promptly.