Supply Chain Sustainability Spotlight.
Responsibly Managing Our Raw Materials
After several years of disruptions stemming from various global events, the supply chain continued to be impacted by global geopolitical instability in 2023. These events emphasize the need for a resilient and sustainable supply chain. Close monitoring, ongoing interaction, and a thorough evaluation of our raw material suppliers are critical for success in managing today’s turbulent markets. The foundation of our supplier quality review and audit program, along with our commitment to the requirements outlined in our Supplier Code of Conduct, has allowed us to continue to expand our supply chain using best practices.
In addition to the Supplier Code, Balchem maintains a comprehensive approval program for raw material quality sourcing, encompassing an evaluation of the supplier’s quality program, the material being supplied, and verification of the supplier’s measures against food safety risks. In the food safety evaluation process, we consider production methods, distribution channels, and the intended use of the product.
We require all of our raw material suppliers to endorse our Supplier Code, provide confirmation, or demonstrate their commitment by adhering to company policies that align with the standards outlined in our code. Balchem’s Supplier Code mandates suppliers to protect human rights by ensuring healthy labor conditions, fair treatment for employees and contractors, and competitive compensation standards. It is closely linked to and aligned with Balchem’s Code of Business Conduct and Ethics (the “Code”). These standards are derived from the OECD Guidelines for Multinational Enterprises and the eight fundamental conventions defined by the International Labour Organization. We believe that working with suppliers who share our commitment to human rights strengthens our supply chain.
Balchem is proud to achieve the bronze status from our first EcoVadis evaluation. EcoVadis is the world’s largest provider of sustainability assessments for companies. Their assessment considers 21 sustainability criteria from the areas of environment, labor and human rights, ethics and sustainable procurement. This rating puts Balchem in the top 47% quartile in our sector.