Managing a World-Class Global Supply Chain, Ensuring Integrity
Emerson’s supply chain is essential to our ability to solve customer challenges and stay ahead of their needs. As we’ve expanded globally and broadened our supply chain, we’ve focused on picking the right suppliers to help us deliver ideal solutions for our customers, then helping to advance their processes and technologies to support them in expanding operations and realizing new opportunities.
We expect our suppliers to share our values and principles. We expect suppliers to stay current with technology, act with integrity and treat people and the environment with respect – all actions that reflect our priorities. We understand that those high expectations require investments from Emerson as well. Those investments strengthen our suppliers, and accelerate progress, capability and quality of life in the regions where they operate, including many developing regions of the world.
We demand that suppliers align with our stances on social responsibility and ethics. This enables us to maintain and build a supplier base that crosses geographies and cultures, but always stays true to Emerson’s core values.
This approach benefits Emerson, its suppliers, and the communities where our suppliers operate. It allows us to move at the speed of our customers’ needs, while always maintaining the highest levels of quality, backed by unwavering integrity and responsibility. And it ensures a strong and flexible supply chain that is positioned to sustain Emerson and its customer for the long haul.
Our supplier management practices include:
To enhance our knowledge of suppliers and limit the risk of inadvertently supporting wrongful practices, we use internal, industry and public sources to alert us to improper supply chain behavior. We expect business unit supply chain managers to make reasonable assessments of questionable activity and to ensure that all practices conform to Emerson expectations. We encourage our businesses to conduct periodic business reviews with large or preferred suppliers, which should include discussion of social issues such as safety and environmental compliance.
Training Emerson Employees
Corporate social responsibility efforts address a range of complex issues across differing geographies, cultures and business practices. Acting responsibly requires knowledge of each subject, understanding of laws and practices, and the ability to recognize potential deviations.
To deal with these complexities, Emerson trains managers and employees annually to help them engage effectively with suppliers as they communicate Emerson’s priorities. This training also helps improve our ability to recognize, report and support remediation of any compliance issues.
Affirming Supplier Responsibility
We expect suppliers to abide by our ethical behavior guidelines that forbid any Emerson employee or family member from accepting payment from outside parties in connection with supplier transactions. We also prohibit suppliers from offering gifts that could influence Emerson-related purchasing decisions.
We strive to have all principal suppliers affirm their understanding of Emerson values and standards regarding ethical behavior, labor practices, human rights and environmental protection. We expect all suppliers to operate in a manner that supports Emerson’s commitment to conduct business responsibly. Our form supplier agreement contains a “Standards of Conduct” clause which states that we expect suppliers to comply with generally accepted principles of social responsibility, referencing the Emerson Supplier Code of Conduct. Currently, almost half of Emerson’s supply chain spend is under contracts containing this clause.
Supplier Code of Conduct
This Emerson Supplier Code of Conduct embodies the broad principles set forth in our Corporate Citizenship Statement. We encourage all of our suppliers to familiarize themselves with this statement as we expect each supplier to adhere to these principles.
Our Supplier Code of Conduct was developed for compliance with important regulations like the UK Modern Slavery Act 2015 and the California Transparency in Supply Chains Act. Emerson fully supports these and all other efforts to eradicate human trafficking across the globe.
Emerson Conflict Minerals Statement
Emerson supports all efforts to end the human suffering and environmental impact that has been associated with mining in the Democratic Republic of Congo and adjoining countries. Emerson is committed to meeting all legislative and regulatory requirements that seek to eradicate this suffering. To this end, Emerson expects its suppliers and their suppliers to acquire minerals only from responsible sources. View our Conflict Minerals Statement.
As a broadly diversified company with a wide variety of products, we purchase through our supply chain a wide variety of raw materials and component parts. Copper and steel are the most widely used raw materials across our businesses. In fiscal 2015, our businesses used approximately 29,000 tons of copper and 314,000 tons of steel, not including copper and steel contained in finished components, of which approximately 72 percent and 48 percent, respectively, were recycled materials.