We are committed to conducting business with the highest ethical standards, and we expect the same of our suppliers. At the same time, we also see opportunities to generate shared value through sustainability.
As we advance on our sustainability journey, we believe partnering with our suppliers will play an important role in our ability to generate significant positive impacts beyond our own operations.
Our Supplier Sustainability Team has worked closely with our Source-to-Pay organization to identify critical suppliers, factoring in aspects such as total spend, single source, and the specific needs of our business operations. Prioritizing among our thousands of suppliers will allow us to focus on high-impact relationships.
By the end of calendar year 2022, we enrolled 60 of our 182 identified critical suppliers into the EcoVadis third-party platform and are actively working toward a 100% participation rate. This process will help give us a holistic view of our supply chain’s environmental and social impacts and provide information from which we expect to take strategic actions to mitigate risk and drive improvements with our business partners.
We also continue to collaborate with suppliers who share our focus on sustainability. One of the focus areas is promoting electric vehicle truck movements throughout our network of Cabot and customer facilities.
Our team in Brazil is improving and advancing sustainability locally through an initiative to significantly reduce greenhouse gas (GHG) emissions in the transportation of our raw materials. Our facility in Mauá, Brazil received its first delivery of raw material from a truck powered by compressed natural gas (CNG). To illustrate the reduction of GHG emissions on the approximately 50 km route from Cubatão to Mauá, a natural gas vehicle emits 10% less GHG emissions compared to a diesel-powered truck. The expectation is to make two trips a day with this vehicle, which would result in the avoidance of 20 kg of CO2 daily.
In an electric truck pilot with sennder, we successfully completed one of Europe’s first cross-border transports using a heavy-duty zero-emissions electric truck. As we advance in our commitment to achieve net zero ambitions, we are engaging with suppliers that offer carbon offsets and sustainable solutions that minimize impact on the environment. In this pilot, sennder transported 17+ tonnes of product for us from the port of Rotterdam to Antwerp, Belgium and then returned to base – a round trip covering a distance of more than 300km.Learn More
Our team in China has been developing a leasing program for our plastic pallets. Instead of selecting standard single-use pallets for key customers in China, we coordinated with our partners both upstream and downstream in our logistics supply chain to identify a better solution. The alternative allows for pallets to be sent back to the nearest network point for redistribution to Cabot and our partners, enabling a savings of approximately 85 metric tons of plastic per year.
In our effort to avoid unnecessary disposal of bags used to package our product, our team in Brazil has been partnering with a supplier to develop a radio-frequency identification (RFID) tag that could help track the movement of these bags. This would allow us to improve the percentage of bags returned for reuse and coordinate with customers accordingly. Currently, approximately 65% of bags are returned to Cabot from our customers, and we anticipate this rate to increase to about 80% with the use of RFIDs. This system will also help us monitor the condition of bags being reused and enhance our ability to track packages throughout their distribution.
We are excited to announce that we are the first major fumed silica manufacturer to introduce a new multi-wall brown paper bag design for fumed silica. This initiative has been in development for two years and extensive testing has been carried out to ensure the bag performance is maintained.Learn More