VBDO Responsible Supply Chain Benchmark 2011 - a comparative investigation into CSR in the supply chain of 40 multinationals - Stefan Janssen MSc Robert Zwiers MSc Amara Goeree BSc December 14th, 2011 Vereniging van Beleggers voor Duurzame Ontwikkeling (Association of Investors for Sustainable Development) Pieterstraat 11 3512 JT Utrecht (t) +31 (0) 30 234 0031 [email protected] www.vbdo.nl www.duurzaamaandeel.nl - VBDO Responsible Supply Chain Management Benchmark 2011 - Foreword VBDO................................................................................................................. 4 Executive Summary............................................................................................................ 5 1. Introduction.................................................................................................................. 8 1.1. Mission and vision of the VBDO ......................................................................... 8 1.2. Vision on Corporate Responsibility...................................................................... 8 1.3. Vision on Responsible Supply Chain Management.............................................. 9 1.4. Key theme: Human Rights - “Protect, Respect and Remedy”............................ 10 1.5. Key theme: Scarcity and volatility of commodity markets ................................ 14 2. Method ....................................................................................................................... 16 2.1. The benchmark methodology ............................................................................. 16 2.2. Basic principles and demarcation ....................................................................... 17 2.2.1. Basic principles............................................................................................ 17 2.2.2. Demarcation................................................................................................. 18 2.3. Benchmark indicators ......................................................................................... 19 2.4. Qualitative and quantitative assessment ............................................................. 20 2.5. The role of the jury and the Award..................................................................... 20 2.6. Best Practices...................................................................................................... 20 3. Results – Company performance............................................................................... 22 3.1. ‘Foods’ ................................................................................................................ 22 3.1.1. Royal Ahold................................................................................................. 23 3.1.2. Heineken ...................................................................................................... 24 3.1.3. Unilever........................................................................................................ 25 3.1.4. CSM ............................................................................................................. 26 3.1.5. Royal Wessanen........................................................................................... 27 3.1.6. Sligro Food Group ....................................................................................... 28 3.1.7. Nutreco......................................................................................................... 28 3.2. ‘Electronics’........................................................................................................ 29 3.2.1. ASML .......................................................................................................... 30 3.2.2. Royal Philips................................................................................................ 31 3.2.3. TomTom ...................................................................................................... 32 3.2.4. ASM International ....................................................................................... 33 3.2.5. Royal KPN................................................................................................... 33 3.3. ‘Construction’ ..................................................................................................... 34 3.3.1. Wavin........................................................................................................... 35 3.3.2. Ballast Nedam.............................................................................................. 36 3.3.3. Royal BAM Group....................................................................................... 37 3.3.4. Heijmans ...................................................................................................... 38 3.3.5. Imtech .......................................................................................................... 39 3.4. ‘Chemicals & Industry’....................................................................................... 40 3.4.1. Royal DSM .................................................................................................. 41 3.4.2. AkzoNobel ................................................................................................... 42 3.4.3. ArcelorMittal................................................................................................ 43 3.4.4. Royal Vopak ................................................................................................ 44 3.4.5. Royal Ten Cate ............................................................................................ 44 3.4.6. Aperam......................................................................................................... 45 2 - VBDO Responsible Supply Chain Management Benchmark 2011 - 3.4.7. Crown van Gelder........................................................................................ 46 3.4.8. Aalberts Industries ....................................................................................... 47 3.5. ‘Mining’ .............................................................................................................. 47 3.5.1. Fugro............................................................................................................ 48 3.5.2. Royal Boskalis Westminster........................................................................ 49 3.5.3. SBM Offshore.............................................................................................. 49 3.5.4. Royal Dutch Shell........................................................................................ 50 3.5.5. AMG ............................................................................................................ 51 3.6. ‘Media’................................................................................................................ 51 3.6.1. Reed Elsevier ............................................................................................... 52 3.6.2. Telegraaf Media Group................................................................................ 53 3.6.3. Wolters Kluwer............................................................................................ 54 3.7. The ‘Others’........................................................................................................ 55 3.7.1. TNT Express ................................................................................................ 56 3.7.2. PostNL ......................................................................................................... 57 3.7.3. Air France-KLM .......................................................................................... 58 3.7.4. Mediq ........................................................................................................... 59 3.7.5. Pharming...................................................................................................... 59 3.7.6. Macintosh Retail Group............................................................................... 60 3.7.7. Accell Group................................................................................................ 60 4. Ranking and Analysis ................................................................................................ 62 4.1. Ranking............................................................................................................... 62 4.2. Analysis............................................................................................................... 63 5. Summary and conclusions ......................................................................................... 66 6. Appendixes ................................................................................................................ 68 6.1. Appendix 1: Benchmark Criteria........................................................................ 68 6.2. Appendix 2: Criteria scores (per ‘sector’) .......................................................... 76 3 - VBDO Responsible Supply Chain Management Benchmark 2011 - FOREWORD VBDO When engaging with companies, the following questions often pop up. “Why should we make our processes more sustainable?” “How can a company address international issues?” “What does the concept of human rights exactly imply, notably from our Western perspective?” “How can we find the solutions to make our products ready to deal with future challenges and give our company a competitive edge?” Supply chain management has