Risks related to inadequate working conditions in the supply chain or lack of decarbonisation activities in the so-called Scope 3 have become one of the elements affecting the competitiveness of enterprises. Hence, the Global Cosmed Capital Group announced its Sustainable Supply Chain Management Policy in accordance with ESG criteria. It results in increased expectations in terms of social, environmental and corporate governance towards suppliers, educational activities that have just been launched and the first sustainable development audits planned for this year.
Global Cosmed S.A. (GC SA) is one of the largest producers of cosmetics and household chemicals in Poland. Last year, the company introduced over 112 million products to the market. Their manufacture required cooperation with over 250 suppliers of raw materials, packaging and services from 12 countries. As part of the purchasing policy, local suppliers are preferrable (87% of all suppliers), as they are less likely to violate human rights, which of course does not guarantee the automatic implementation of all provisions of the International Charter of Human Rights or the assumptions of the European Green Deal.
“The mission of the Global Cosmed Capital Group is to provide the highest quality products, created by people for people, using the latest technology and with care for the environment. We also have a responsibility to ensure that our business activities do not contribute, directly or indirectly, to human rights violations or environmental pollution. Therefore, we expect ourselves and our suppliers to comply with rights related to work safety and climate protection,” said Magdalena Miele, Vice-President of the Management Board of Global Cosmed S.A.
The Policy presented to the public indicates principles the company considers to be the most important, which should be observed in plants manufacturing bottles, soap bases or fragrances for GC SA’s own label softeners. This means e.g. prohibition of child labour or forced labour, equal rights, the right to safe work, but also the protection of biodiversity and animal welfare, and the responsible management of waste, water and sewage. The policy also defines the most important management structures that monitor compliance with the adopted rules and procedure.
‘One of the most important elements of the declaration adopted by the Management Board is the issue of educating our suppliers and their employees on the importance of ESG principles for business development, meeting the expectations of consumers and the market. That is why we have started training for employees of companies responsible for providing product components and services. We believe that by sharing knowledge and conducting a partnership dialogue, we will develop the best market practices in the area of ESG more effectively. The supplier audits planned from December, extended to include new issues, will be an opportunity to present not only our ESG requirements, but also legislative requirements imposed on us as a listed company under the CSRD or the so-called “Due diligence”,’ summed up Marek Janik, Procurement Director at Global Cosmed S.A.
Let us recall that the Corporate Sustainability Reporting Directive (CSRD) adopted by the European Parliament on November 10 this year and the reporting standards (the so-called ESRS adopted on November 15 this year) impose an obligation on large public interest entities to exercise due diligence in the area of social standards, e.g. human rights in the value chain (ESRS S-2) or the need to measure the carbon footprint in all 15 Scope 3 categories along the entire value chain.