Raising
CSR
standards
throughout
the chemicalindustry

Activity
Report2023

Messagefrom the President

TfS framework
and results

3

1

TfS - a network ofsupport, educationand training

About TfS

11

TfS Scope 3 GHG
emissions programme. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

TfS Capability Building –initiatives and achievements.. . . . . . . . . . . . . . . . . . . . . . . . 11

Assessments, Audits and Action
Priority Dashboard. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Building stronger communities. . . . . . . . . . . . . . . . . . . . 13

TfS - a globalorganisation

2

Learn more

16

TfS Regional activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
New members. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Global Workstreams andRegional Operating Committees. . . . . . . . . . . . . . . . . 20

CAPs and data mining. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
TfS Office. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
KPIs.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

TfS Activity Report 2023

Governance

24

22

TfS – an international, non-profit
association under Belgian law. . . . . . . . . . . . . . . . . . . . . 22

G

Message fromthe President

Messagefrom the President

Dear TfS members,
suppliers, and friends,
The past year has been
an important one for
TfS as it experienced
substantial growth andintensified collaboration,
resulting in good outcomes.
TfS Activity Report 2023

About TfS

TfS framework& results

The TfS initiative made considerable
progress towards its 2025 Grow&Deliver
strategy, particularly in addressing thechemical industry's response to climatechange. Several initiatives in the domain
of TfS Assessments and TfS Audits will
ensure that the TfS framework, tools andprocesses remain future-proof. To ensure
all stakeholders are on board and canwork towards common goals, a robust
capability-building and learning
programme supports progress.
The TfS Scope 3 greenhouse gas(GHG) emissions programme has madesignificant progress. It now contains
the full end-to-end TfS solution, which
includes the PCF Guideline, the White
Paper, and the piloting of the PCF
data-sharing solution. These tools will
empower TfS members and suppliers
to deliver meaningful, high-quality dataand share them through a trusted platform. This will create transparency andsignificantly help the industry to monitor,
manage, and take steps to reduce its
Scope 3 GHG emissions. The Scope 3
programme promoted TfS’s initiativewith chemical and other associations,as well as downstream industries in key
TfS regions.

TfS - a network ofsupport,education& training

TfS - a globalorganisation

The TfS Academy and the TfS
learning and capability programme
have significantly expanded theirofferings to educate and train TfS
members and suppliers. These include
courses in the TfS core offerings andprocesses, the Scope 3 challenge,
and other areas. Clear messaging
and understanding are critical as these
programmes mature for successfulchange management.
10 companies joined TfS in 2023,
significantly fuelling the growth andimpact of the TfS initiative on thesustainability performance of chemical
supply chains. The TfS warmly welcomes
Hüttenes-Albertus Chemische Werke(HA Group), Indorama Ventures, Johnson
Matthey, Momentive Performance
Materials, Nouryon, Oleon, SABIC,
Synthomer, Tricon Energy and Yara
into the TfS fold, bringing the global
membership to 50 chemical companies.
The TfS Regional Operating Committees
increasingly contribute to the facilitationand global impact on the sustainability
performance of suppliers in Asia (China,
India, Japan, and Singapore), North
America (US), and Latin America (Brazil).
The Committees played a vital role in
the regional rollout of the PCF Guideline,
in partnership with regional chemical
associations and other organisations.
Their partnership with the regional
chemical associations has resulted injoint events and raised awareness of TfS.
The Committees are also instrumental indriving regional membership.

GovernanceOn behalf of the Steering Committee, I
thank the entire TfS community, including
all TfS CPOs, TfS Coordinators, global,
and regional Workstream members, buyer
communities, suppliers, stakeholders,and key partners for their dedicationand commitment to the TfS initiative.
I invite all chemical companies who share
our ambition to join us and invite their
suppliers to participate in our Assessments
and programme and work together
towards reducing their GHG emissions.
As we approach 2030 - the target
year for the United Nations Sustainable
Development Goals and the 1.5 degrees
Celsius global warming limitation targetof the Paris Agreement - climate issues
are critical. The need for sustainablebusinesses only intensifies. TfS is the
crucial enabler to make supply chainsand businesses more sustainable. Let us
continue the journey of working together
to develop and implement sustainable
responsible sourcing solutions for abetter world.

Jennifer Jewson
President TfS

1

Message fromthe President

About TfS

TfS framework& results

TfS - a network ofsupport, education& training

TfS - a globalorganisation

Governance

About TfS
TfS is a global organisation,with headquarters inBrussels, Europe.

Regional representation
by TfS members in Asia
(China, India, Japan, andSingapore), Brazil and USA.

Develops and drives
innovative responsible
sourcing solutions throughthe global chemical industry.

50 Members

CMYK Color Information
IVL Blue :C 100 | M 80 | Y 6 | K30 | Pantone : PMS 288C
IVL Green : C 97 | M 2 | Y98 | K12 | Pantone : PMS 355C
IVL Red :C 2 | M100 | Y82 | K 6 | Pantone : PMS 199CRGB Color Information
IVL Blue :R 5 | G 46 | B 97 | #002e61
IVL Green : R 0 | G153 | B 51 | #009933
IVL Red :R 204 | G 0 | B 51 | #cc0033

Over€ 800 billion€ 500 billion

Global turnover of TfS member
companies in the chemical industry 1

Global spend of TfS member
companies in the chemical industry 2

TfS Activity Report 2023

1 As per TfS member companies published Annual Reports 2022
2 Estimated figures2

Message fromthe President

About TfS

TfS framework& results

TfS - a network ofsupport, education& training

TfS - a globalorganisation

Governance

TfS Scope 3 greenhouse gas emissions programmeadvances Scope 3 transparency in the chemical industry
Key milestones were achieved in 2023 across all Workstream
focus areas, thanks to the high level of engagement andcommitment of the member companies.

TfS PCF
Guideline

The Product
CarbonFootprint
Guideline for
the Chemical
Industry

Specification for
product Carbon Footprint
and Corporate Scope
3.1 Emission Accounting
and Reporting

Version 2.0 - November 2022++

Improving andharmonizing
Scope 3
Reporting

TfS White Paper

The TfS
Solution

PCF Data-sharing
solution=

Biogenic Carbon
Mass / Energy Balance
Recycled Content

Real PCF exchange at scale

Scope 1++

Scope 2
Scope 3

Version 1.1 - TfS October 2023

Improvingand harmonising
Scope 3 reporting

Data-sharing platform= higher capacity reductionof global emissions

In 2024, the programme will continue activities across its corefocus areas. Projects include the update of the PCF Guideline
to its second full version, and the conclusion of the PCF
data-sharing pilot. A key focus in 2024 will be the roll-out of the
PCF data-sharing solution to all TfS members and suppliers, andthe integration of the PCF data-sharing solution to complement
the PCF Guideline into global outreach activities.

The TfS PCF Data-sharing solution is being piloted until Q1 2024.

TfS Activity Report 2023

3

KPIs

The gold standard
for calculating PCFs

TfS PCFWhite paper•	Fortifying decarbonisation learning: A detailed
decarbonisation learning programme is being developedby Workstream 4 (‘Capability Building and Communication’)to complement the activities of Workstream 5 (‘Scope 3
GHG emissions’). The first five training courses are alreadyavailable in the TfS Academy in English, Spanish, Portuguese
and Chinese:• Get ready to decarbonise: Introduction.
• What are Scope 1 & 2 emissions?
• What are Scope 3 emissions?
• Intro to Climate Target Setting•	Understanding Product Carbon Footprint: A Key toEnvironmental Responsibility

CAPs and data mining

Workstream 5 (‘Scope 3 GHG emissions’), pooling expertisefrom people across more than 30 TfS member companies,
continued its work along key focus areas:•	Standardised approaches: Developing standardised
methodologies for the chemical industry to quantify corporate
Scope 3 – Category 1 GHG inventories and product carbon
footprints (PCFs).
•	
Data sharing and exchange: Developing a TfS PCF
data-sharing solution to amplify the flow of PCF data ofchemical products and materials along the value chain.
•	
Cooperation with external partners: Collaborating withthe external Scope 3 transparency and PCF ecosystem toensure cross-industry alignment and global harmonisation.

The programme’s significant accomplishments in 2023 include:•	
Writing the White Paper: TfS published its first White
Paper, “Improving and harmonizing Scope 3 Reporting”.
It explores the challenges and potential solutions to harmonise carbon accounting methodologies for a more sustainablechemical industry and is a complementary document to the
PCF Guideline published in 2022. Three vital topics for thechemical industry are explored in detail: biogenic carbon; massand energy balance; and recycled materials and content.
•	
Piloting the PCF data-sharing solution: TfS successfully
prepared for a pilot of its PCF data-sharing solution using
Siemens’ SiGreen technology. The pilot entailed a preparation
phase followed by sequenced data-sharing tests - first between
TfS members and later involving external suppliers. The pilot
started in mid-2023 and will run until the first quarter of 2024.

•	Engaging with stakeholders: TfS successfully engaged
a wide range of stakeholders to raise awareness about the
TfS PCF Guideline. To date, over 60 associations & initiatives
have been approached with over 100 engagement points.
Global outreach was initiated in all regions where TfS
operates. The aim is to share best practice and inspire othersin the value chain to join TfS in its ambition to tackle Scope 3
GHG emissions. The World Business Council for Sustainable
Development (WBCSD) and Catena-X continue to be key
partners in the TfS Scope 3 GHG programme.

Assessments, Audits &Action Priority Dashboard

The TfS Scope 3 greenhouse gas (GHG) emissions
programme continued to advance its work on Scope 3
transparency in the chemical industry in 2023. Its overall
aim is to address the significant share of indirect GHG
emissions represented by the industry.

TfS Scope 3 GHG
emissions programme

TfS framework and results

Message fromthe President

About TfS

TfS framework& results

TfS - a network ofsupport, education& training

TfS - a globalorganisation

Governance

TfS Scope 3 GHG
emissions programme

Assessments, Audits
and Action Priorities Dashboard
TfS Audits provide direct insights
into the sustainability practicein the factory as opposed to a
document-based TfS Assessment.
All suppliers are given theopportunity to share their results,
thus all TfS members receive theresults of the Assessments andAudits, following the principlethat "an Assessment or Audit
for one is an Assessment andAudit for all". This approach helps
to increase efficiency and reduce
costs while encouraging industrywide collaboration and promoting
continuous improvement.

CAPs and data mining

TfS Assessments are conductedby our partner EcoVadis, a global
leader for CSR Assessments, while
selected TfS-approved auditors
carry out TfS Audits.

Assessments, Audits &Action Priority Dashboard

The TfS global supplier engagement
programme assesses
and improves the sustainability
practices within chemical supply
chains. The programme uses TfS
Assessments and TfS Audits tomeasure suppliers' performance in
key areas such as Environmental,
Labour and Human Rights, Ethicaland Sustainable Procurement.

KPIs

TfS Activity Report 2023

4

Message fromthe President

About TfS

TfS framework& results

TfS - a network ofsupport, education& training

TfS - a globalorganisation

Governance

TfS Assessments
A major topic for TfS is the growing availability of data.
The Digitalisation Project’s primary objective is tocreate a comprehensive data repository that includes
data from Audits, Assessments and the TfS Academy.
It will seamlessly integrate with the internal reporting
systems of our member companies.

TfS Scope 3 GHG
emissions programme

Enhancing data transparency

TfS EcoVadis cross-member webinars
The main challenges in this project are the complexityof the data and, most importantly, the different systems
that each TfS member operates. The project's first phase,including piloting, is expected to be completed by theend of 2024.

TfS, together with EcoVadis, hosted a global webinar series
covering diverse topics of interest. The series featured
morning and afternoon sessions to accommodate attendees
from around the world.
Topics included:

Procurement Training

The TfS Action Priorities Dashboard,launched in 2022 by TfS Workstream 2(‘TfS Assessments’) and EcoVadis, enables
the TfS network to focus on common
actions by utilising available data.

Child labour, forced labour& human trafficking

Energy consumption& GHG emissions

257 participants

TfS Coordinators and Procurement teams were informedof the latest updates to the EcoVadis platform, benefits
for suppliers, and how to make the best use of the sector
initiatives features.

Dashboard Training
10 October 2023

Reporting on KPICorruption

Water management

Biodiversity

72 participants

In the context of common actions coming from theAction Priorities Dashboard, this webinar provided TfS
Coordinators and Procurement teams with insights onaligning their messaging and coordinating their findings
from Audits and Assessments.

CAPs and data mining

The primary objective is to improve due
diligence by prioritising emerging topics
based on their urgency. In 2022, the focus
was on tracking child labour, forced labour,
human trafficking, corruption, Scope 1 and
2 energy consumption, and GHG emissions
from suppliers. In 2023, water management
was added to the list of topics, with more
topics expected to be included in the future.
These topics can be analysed at a macrolevel and brought to the attention of all
members, as well as at an individual supplierlevel. A list of areas for improvement isused to categorise each topic as either
low, medium, of high priority.

Action Priorities for partners

Assessments, Audits &Action Priority Dashboard

26 September 2023

Action Priorities Dashboard

Joint Carbon Story

Waste management

139 participants

The webinar helped attendees understand how to factor a
supplier's greenhouse gas (GHG) emissions into their own
company's Scope 1, 2 & 3 emissions reporting. The event
was open to TfS Coordinators, procurement teams, buyers,
category managers, sustainability and supply chain teams,
and ESG practitioners who wanted to learn more aboutcarbon metrics and how to align them in a TfS context.

KPIs

Low

25 October 2023

MediumHigh

More at tfs-initiative.com

TfS Activity Report 2023

5

Message fromthe President

About TfS

TfS framework& results

TfS - a network ofsupport, education& training

TfS - a globalorganisation

Governance

TfS Audits
During 2023, TfS Workstream 3 (‘Audits’) aimed to ensure that the TfS Audit approachis “future-proof” in the face of evolving due diligence legislation. Throughout the year,
the Workstream took the following actions:

Increased accuracy: Moving the TfS Audit
from an offline to an online tool ensures auditors
always have the latest version at their disposal
and updates can be integrated regularly.

Improved quality standard: By steering
Audits through an online application, the likelihoodof errors and quality issues can be significantly
reduced. Additionally, TfS will closely monitor thereasons behind any non-conformities. Thanks to
the TfS Academy, we can design a comprehensive auditor training programme that will effectivelytransfer the necessary knowledge.

CAPs and data mining

Continuous synergy with similar standards:
Several of our members, or their suppliers,
utilise Audit programmes like SMETA, SQAS
and PSCI to enhance sustainability in their supply
chains. TfS acknowledges these programmes
as valid alternatives to avoid duplication of efforts
by suppliers. In 2023, TfS also recognised theChemical Road Transportation Safety Assessment
System (CRSAS) from China as an equivalentof TfS Audits.

Assessments, Audits &Action Priority Dashboard

Alignment with the most recent due
diligence laws: To comply with the latest
due diligence laws (including the stringent
requirements set by LksG and EU legislation),
the TfS Audit questionnaire was reviewed bymembers and external experts at the beginningof 2023. Based on feedback, the Workstream
added or updated questions. The TfS team ofinternal experts has also reviewed each chapter
to identify and remove any outdated content.

TfS Scope 3 GHG
emissions programme

Future-proofing TfS Audits

KPIs

More at tfs-initiative.com

TfS Activity Report 2023

6

Message fromthe President

About TfS

TfS framework& results

TfS - a network ofsupport, education& training

TfS - a globalorganisation

Governance

TfS Scope 3 GHG
emissions programme

CAPs and data mining
Both TfS Assessments and TfS Audits lead tothe development of Corrective Action Plans (CAPs),a set of actions that help member companies takeconcrete steps to improve their supply chains.
By mining data from these Assessments andAudits, TfS can identify areas where the mostsignificant improvements can be made. The
analysis of this data will guide capacity building
in target countries and suppliers.

Analysis of average scores per parameter
indicates that in 2023 all parameters increasedby 2-3 points compared to 2022. Labour& Human Rights scored the highest andSustainable Procurement the lowest.

EthicsSustainable
Procurement

55.8

50.4

44.1

Sustainability performance of TfS Suppliers

11,421

53.4

55.4

Suppliers

Benchmarking TfS suppliers vs all Assessments in the last three years
16,902 vs 128,765

+ 4.7

+ 5.8

+ 4.6

+ 4.2

+ 4.0

Companies

50.6 vs 45.9

51.9 vs 46.1

53.4 vs 48.8

47.8 vs 43.6

41.6 vs 37.6

+ 4.7

+ 3.6

+ 3.1

+ 3.4

Reassessments of TfS Suppliers

62%

+ 3.9

Improvement score

KPIs

62% of the TfS suppliers that we
re-assessed in 2023, reached a higherscore in their Re-Assessment. Across all there-assessed suppliers, the overall score improved
by 3.9 points, with the biggest improvement seenin the ENV section (Supplier Environmental Score)
at 4,7 points. However, this improvement scoreof 62% is lower than the previous year's due toa complex mix of factors, including a high initial
Assessment score, involvement of risk countries
and a focus on certain business categories.

Labour/Human
RightsCAPs and data mining

Benchmarking the results of TfS suppliers thathave been assessed in the past 36 months andsupply chains against non-TfS average scoresdemonstrates that TfS suppliers consistently
rank above the overall EcoVadis population of
rated suppliers.

Environment

Assessments, Audits &Action Priority Dashboard

TfS Assessments

All

Figure: Tableau average scores per sectionMore at tfs-initiative.com

TfS Activity Report 2023

7

Message fromthe President

About TfS

TfS framework& results

TfS - a globalorganisation

GovernanceFollow-up Audits

Follow-up Audit findings

TfS Scope 3 GHG
emissions programme

TfS - a network ofsupport, education& training

TfS Audit findings
In the Management section, the issues
that remain problematic are monitoring anddocumenting supplier and contractor risks
and human rights violations, along with policy
and continuous improvement-related issues.

In 2023, TfS analysed 492 Audits andrecorded approximately 4,100 findings.
Most of these findings were related to
Health & Safety, which is the most criticalissue. Emergency handling and preparedness,
as well as Occupational Health & Safety,
remain a concern, so the TfS Academy
provides courses to suppliers on these subjects.

In 2023, 60 follow-up Audits were conducted,
covering around 760 findings. After the Audit,
200 suppliers documented improvement by
updating their Corrective Action Plans online.

743

Assessments, Audits &Action Priority Dashboard

The TfS Audits evaluate suppliers in fivecategories: Management, Environment,
Health & Safety, Labour & Human Rights,
and Governance. Each supplier Audit has
150 standardised questions.

760

60

The most common environmental issues
uncovered were related to monitoring GHG
emissions and waste-related problems.
Regarding Human Rights, data analysis
showed that most findings were related toworking hours and wages.

CAPs and data mining

500
45

30

KPIs

2021

TfS Activity Report 2023

2022

2023

2021

2022

2023

8

Message fromthe President

About TfS

TfS framework& results

TfS - a network ofsupport, education& training

TfS - a globalorganisation

Governance

TfS KPIs for Assessments and Audits aredesigned to promote transparency and havea positive impact.

In line with its sustainability strategy andambition, each TfS member company sets
its annual target to contribute to the TfS KPIs.
The aggregation of each of these targets forms
the global KPIs that the TfS community iscollectively working towards. This reflects theidea that, while each TfS Member has its
strategy, through collaboration thesecontributions are amplified.

As of 31 December 2023

Target achieved by 127%
Target achieved by 113%
Target achieved by 97%

KPI 1
TfS Assessments
actively managed
by TfS members
Target: 15,000
Actual: 16,902

KPI 2

KPI 3

TfS Assessments
conducted & sharedacross TfS members

Average improvement
rate after TfS
re-Assessment

Target: 9,000
Actual: 11,421

Target: 64%
Actual: 62%
CAPs and data mining

Self-defined targets also strengthen the
responsibility and ownership of member
companies for their TfS Assessments and
TfS Audits and follow-up.

Assessment KPIs

Assessments, Audits &Action Priority Dashboard

The sharing of Assessment and Audit results
enables a dialogue on improvement between
member companies/customers and suppliers.
4,650 suppliers have demonstrated sustainability
improvements after a TfS Assessment or TfS
Audit or TfS re-Audit.

TfS Scope 3 GHG
emissions programme

KPIs

Despite the ongoing global uncertainty and significant
business challenges, the members of TfS have performed wellon all KPIs. This has been possible thanks to the continuous
efforts of buyers, suppliers, audit companies and the TfS office.

KPIs

TfS Activity Report 2023

9

Message fromthe President

About TfS

TfS - a network ofsupport, education& training

TfS - a globalorganisation

Governance

TfS Scope 3 GHG
emissions programme

Audit KPIs

TfS framework& results

Regional perspective

As of 31 December 2023

Target achieved by 99.9%

TfS Assessments

TfS Audits

per region 2023

per region 2023

Target achieved by 98%

KPI 2

TfS Audits
actively managed
by TfS members

TfS Audits
conducted & sharedacross TfS members

Target: 1,000
Actual: 999

Target: 500
Actual: 492

documented in TfS
Assessment or TfS Audit
follow-up or re-Audits in 2023:

4,650

Asia Pacific.............................................................. 81%

Asia Pacific..............................................................25%

Europe...............................................................................11%

N America................................................................... 14%

N America....................................................................... 3%

S America....................................................................... 8%

S America....................................................................... 3%

Other........................................................................................ 3%

Other........................................................................................ 2%

Regarding sustainable Assessments, we see a strong shift towards Europe while
Asia - China in particular - reinforces itself as the go-to region for sustainable Audits.

TfS Assessments

TfS Audits

top 3 countries

top 3 countries

Germany.15%

China		
61%

USA

.14%

India		
10%

China

13%

Germany

6%

The top three countries of assessed suppliers have slightly shifted year on year, with the
USA and China swapping places. Currently, there are slightly more assessed suppliers in the
USA than in China. When comparing the size of audited suppliers, China has increased its
lead from 52% to 61%, while the number of suppliers in India has declined from 16% to 10%.

TfS Activity Report 2023

10

KPIs

Thanks to the OASIS database, resources
have been reallocated towards Audit preparation.
In previous years, a lack of good Audit preparation
often resulted in delayed Audits. With the new
online Audit request tool, members can now
monitor supplier progress towards the Audit
and resolve bottlenecks much faster.

Supplier
improvements

Europe..............................................................................50%

CAPs and data mining

This year, we observed a significant effort
in setting up new Audits or following up on
the current ones. The updated online system
has supported many suppliers in completing
Audits more efficiently, which has subsequently
helped members in their Audit planning.

Assessments, Audits &Action Priority Dashboard

KPI 1

Message fromthe President

About TfS

TfS framework& results

TfS - a network ofsupport, education& training

TfS - a globalorganisation

Governance

TfS - a network of support,
education and training

TfS Capability Building –initiatives and achievements
The initiatives of TfS Workstream 4 (‘Capability Building andCommunications’) link TfS learning and development activities
to due diligence initiatives. These include TfS Assessments
and Audits, developing decarbonisation training content in linewith a focus on reducing Scope 3 emissions, and continuously
improving the TfS Academy.

Enabling collaborative action
The Workstream set out to promote collaboration, sustainability,
and accessibility for suppliers, aligning with TfS’ commitment
to facilitate shared improvement projects and build a thriving,interconnected community.
Mapping TfS learning offer to findings
from supplier Assessments by EcoVadis
The Workstream began aligning its learning offer with findings
from the supplier Assessments by EcoVadis and automate
course recommendations for suppliers. The mapping
exercise has been finalised. The Workstream also developed
Communication materials to help members make course
recommendations for their suppliers.

Examples of decarbonisation courses that are already available
include those for Scope 1, 2 and 3 emissions including guidanceon calculating one’s scope inventory; and the importance of andsteps towards setting climate targets. All courses are available
in English, several have also been translated into Spanish,Portuguese and Chinese. Further content is being developed.

Developing learner-centric content
Personalised learning journeys were created for TfS
Academy learners to meet their unique needs. Learning
recommendations were expanded and based on morerefined positions (e.g., operational or strategic buyers).
New audience groups (e.g., human resources managers,
sustainability experts) are included.
Building learning partnerships with other organisations
The Workstream contacted different partners and is scoping
proposals for potential learning partnerships. This collaborative
approach has the potential to enrich the TfS Academy's content
with diverse and valuable resources (e.g., helping suppliers
not just through e-learnings that teach them why an issue
is important and what to do, but also help with templates
to address EcoVadis findings related to missing policies).

Lastly, to increase the scale and impact of shared supplierimprovement projects – and following user feedback various projects focused on continuous improvement
were implemented.

TfS Activity Report 2023

11

Building stronger communities

Decarbonisation training for TfS members and suppliers
The new decarbonisation training programme for TfS members
and suppliers was launched. Topics range from an introduction
to climate change that highlights the urgency to act now, tocourses on how to take emission reduction measures.

Simplifying supplier access to the TfS Academy
Access to knowledge is key and should come without hurdles.
By easing access to the TfS Academy for suppliers to TfS
member companies, Workstream 4 enabled them to use the
TfS learning offer effectively and efficiently. The access process
for suppliers was streamlined by simplifying self-registration.

TfS Capability Building –initiatives and achievements

Explore the initiatives undertaken by TfS in 2023 focusing
on learning and development, and community building.

Message fromthe President

About TfS

TfS framework& results

TfS - a network ofsupport, education& training

TfS - a globalorganisation

Governance

Learning & development data
In 2023, TfS delivered webinars for both TfS members and their suppliers:

6
webinars

6
webinarsfor suppliers about the
EcoVadis methodology
and Assessment

in cooperation with
EcoVadis for members
to help them makethe most use of the
EcoVadis platform andtools

in cooperation with
SiGreen to prepare
members to workwith the PCF
data-sharing
solution

468 attendees

295 attendees

2,117 attendees

TfS Capability Building –initiatives and achievements

10
webinars

The TfS Academy is currently mainly used by learners from member
companies. With simplified self-registration for suppliers, we hope to
expand this to representatives of suppliers in 2024. Currently 2731 users
are from TfS members, and 359 from suppliers.

Together they completed 4,177 courses
in 2023 - three times more than last year.

2023

4,397

4,177

In general, the most popular courses arethose related to TfS core activities, suchas Audits and Assessment, followed byenvironmental topics such as greenhousegas emissions & decarbonisation.

Building stronger communities

2022

2,053
1,334

Learners
following courses

CompletedcoursesMore at tfs-initiative.com

TfS Activity Report 2023

12

Message fromthe President

About TfS

TfS framework& results

TfS - a network ofsupport, education& training

TfS - a globalorganisation

Governance

TfS Capability Building –initiatives and achievements

Building stronger communities
TfS is dedicated to improving the sustainability practicesof chemical suppliers worldwide. To achieve this goal, ourcommunity of members share information and best practices
while adhering to antitrust laws.
With its focus on building stronger communities, TfS seeks
to improve connectivity through information exchange anddiscussions. Examples include CPO discussions, #TfSTalks,
TfS Round Table, #TfSConnect and the TfS Annual Workshop.
As a global platform for market leaders, TfS fosters anenvironment where its 50 member companies can collaborate
and shape the future of the chemical industry. Throughpeer-to-peer networking, CPOs can share sustainability
ideas, gain inspiration, and learn from their peers.

Building stronger communities

TfS Activity Report 2023

13

Message fromthe President

About TfS

CPO discussions

TfS Round Table

In 2023, TfS CPOs engaged
a global team on various issues:

The TfS Coordinators' Round Table waslaunched in June 2022 as a platform for
Coordinators across TfS member companies
to connect, share ideas, discuss challenges,
and access resources specific to their role.

Building Awareness andAccountability for Scope 3
beyond Purchasing
Cathy Budd, DOW
Evolving sustainability
requirements and practices:
TfS members’ priorities andnext developments
Jan Paul van der Velde, AkzoNobel;
Minco van Breevoort, Kraton;
Ilkka Nurmi, UPM
How to be successful in
reducing the Scope 3 emissions
Erk Thorsten Heyen, Wacker

TfS - a network ofsupport, education& training

TfS - a globalorganisation

Governance#TfSTalks#TfSTalks are online discussions and knowledge-sharing opportunities
prepared by TfS members on sustainability topics of mutual interest.
In 2023, TfS organised two #TfSTalks:

During the monthly meetings, TfS Coordinatorspresent, discuss and share their experience andknowledge on pre-selected topics. These range
from supplier risk assessment, to reporting, andmanaging the TfS Audit programme internally.
To maintain an open environment for
discussion, everyone is welcome to raisequestions and topics related to their daily work
as TfS Coordinators, and to learn from others.
The TfS Coordinators' Round Table
continues to develop. Potential projects
include collectively addressing high-risksustainability topics with suppliers, andproposed improvements to the structure
and organisation of the Round Table itself.

Sustainable Procurement Integrating Sustainability in theProcesses of Procurement

Scaling Sustainable
Procurement
Programmes

Fleur van den Heuvel Meerman,
Senior Policy Advisor, IRBC SER
Board member - Open supply hub;Bas van Deursen, Director
Procurement EU Kraton;
Katrin Feyerabend, Team Lead
Sustainability Purchasing Henkel;
and Sabrina Ehemann,
Global Sustainability Manager
Procurement Covestro

Raquel Althoff, EMEA Partner
Human Rights ERM;
Leonardo Rentroia, Global
Supplier ESG Program Manager
DOW;
and Dr. Finn Marten Körner,
Head of Capital Markets & Pension
Asset Mgmt Treasury Henkel

Building stronger communities

TfS Audits, sharing bestpractices as well as thebenefits of Audits for members
and suppliers
Steven Brughmans, BASF;
Bertrand Conquéret, Henkel

A total audience of 529 was reached, with an average audience per sessionof 176. This represents an increase of 23% on 2022. Each of the #TfSTalks
includes a lively Q&A session.

TfS Activity Report 2023

TfS Capability Building –initiatives and achievements

Engaging a global teamin Sustainable Procurement
Jennifer Jewson, LyondellBasell

TfS framework& results

14

Message fromthe President

About TfS

TfS framework& results

TfS - a network ofsupport, education& training

TfS - a globalorganisation

Governance

TfS Annual Workshop
The TfS Annual Workshop is the most important event for members of the growing TfS community. In 2023
the Workshop was hosted in Antwerp, Belgium, as a hybrid event on 20 - 21 September. Participants engaged
in multiple break-out sessions and meetings to discuss current and future TfS activities. It is unique platform
for the TfS community to network and build strong connections.
TfS Capability Building –initiatives and achievements

Event highlights include:• Opening and closing by TfS President Jennifer Jewson.
•	A panel session “Global Outlook on TfS: Members' Perspectives” with speakers fromTfS Workstreams, members and regions.
•	Multiple breakout sessions, with four simultaneous presentations.
•	Outcomes and upcoming projects resulting from the break-out sessions presented in a panel discussion.
•	The closing keynote speech on Circular Procurement, given by Prof. Dr. habil. Elisabeth Fröhlich.
Attendees gave positive feedback about the workshop, with an overall satisfaction rating of 4.5 out of 5.

Recordings are available on the TfS Academy.
Building stronger communities#TfS Connect
The #TfS Connect newsletter is designed to keep the entire
TfS community informed about the latest initiatives and progress madetowards the TfS Grow&Deliver strategy. Representatives from member
companies' Buyer, CSR, Investor Relations, Public Affairs, Human Resources,
and CEO office departments, as well as TfS working members, are amongthe 786  subscribers. The newsletter was published twice in 2023: on 6 Julyand 6 November.

The TfS family at the2023 Annual Workshop

TfS Activity Report 2023

15

Message fromthe President

About TfS

TfS framework& results

TfS - a network ofsupport, education& training

TfS is a global organisation
headquartered in Brussels,
Belgium, with regional TfS
member representation in the
Asia Pacific, Gulf Region, Latin
America, and North America.

TfS Activity Report 2023

The TfS network of companies
represents all segmentsof the chemical industry.
TfS is committed to
expanding globally.

TfS ensures global support for the
implementation of its programmethrough a network of Regional
Operating Committees, comprising
representatives of member
companies in the region.
To increase membership, work on
supplier improvement programmes
and advance specific topics ofjoint interest, it is crucial that TfS
develops and cultivates regional
partnerships and close cooperation
with regional chemical associations.

TfS Global Workstreams andRegional Operating Committees

To further increase its impact
on sustainability improvements,
TfS aims to extend its reach andenhance its influence worldwide.

Therefore, TfS has an inclusive
approach and welcomesapplications from chemicalcompanies worldwide that share
the aspiration to actively engage
with suppliers in sustainability
improvement.

TfS Regional
activities

New members

Chemical supply chainsare complex and global. Our
membership and their suppliers
span the world, with regional
support from TfS.

Governance

TfS Regional activities

TfS - a globalorganisation

TfS - a globalorganisation

16

Message fromthe President

About TfS

TfS framework& results

TfS - a network ofsupport, education& training

TfS - a globalorganisation

Governance

TfS AP (Asia-Pacific)

In 2023, TfS China organised trainings,
held meetings with other downstream
industries to discuss the TfS Product
Carbon Footprint (PCF) Guideline,
pitched for chemical companies
joining the TfS membership in China,
and made good progress with its TfS
WeChat account.
Training
TfS China organised an online
Supplier Training ‘2023 Part 2 –EcoVadis Corrective Actions’,
with around 200 participants.

In mid-2023, TfS Japan established
its operational structure andaccelerated its activities.
To increase the number of TfS member
companies, briefing sessions were
held at several chemical companies
in Japan. TfS Japan also had theopportunity to present the TfS PCF
Guideline to the regional chemical

Exchange with otherregional associations
TfS and the China Petroleum andChemical Industry Federation(CPCIF) held a workshop on the
PCF Guideline in Ningbo.
The CPCIF International Exchange
and Foreign Enterprises Committee(Foreign Investment Committee)
Carbon reduction and carbon
neutrality research group held ameeting in Beijing. Representativesof the TfS China Regional Working
Group on Scope 3 GHG emissions
were invited to participate.

TfS member company BASF shared
the use of the TfS PCF Guideline
and the practices of product carbon
footprint management.
TfS partnered with the China
Automotive Technology & ResearchCenter (CATARC) to jointly host asession on the PCF Guideline.

WeChat articles
TfS China published 46 articles on
the TfS WeChat account, growing
its total number of followers to 4,351.

TfS Singapore
TfS Singapore focused on raisingawareness of the TfS initiative.
In November, an interview with TfS
General Manager Gabriele Unger was
published in GRB Global Business
Reports Singapore Chemicals,
Ingredients and Materials 2023
TfS also released the first editionof its 3-part advertorial series with
EcoBusiness, a media and businessintelligence outlet dedicated tosustainable development and ESG

performance, specifically for the Asia
Pacific region. The first advertorial
focused on the key objectives of
TfS, including the need for industry
decarbonisation. The TfS Singapore
team welcomed Synthomer as a newmember and is looking forward todriving the TfS agenda in Southeast
Asia in 2024.

AP
17

TfS Global Workstreams andRegional Operating Committees

Pitching new TfS members
in China
The TfS China Regional Committee
engaged in extensive communication
with several Chinese chemicalcompanies to examine potential
TfS membership.

TfS Activity Report 2023

association, (JCIA), as well as
regional industrial associations
such as CLOMA, JPCA, JRPF, and
GCNJ. To raise awareness of TfS
in Japan, communication materials
were translated into Japanese andpublished on the TfS website. In
November, TfS Japan gave its first
media interview to introduce TfS
and its activities in Japan.

New members

TfS China held its 2023 Supplier
Training event at the 14th China
Petroleum and ChemicalInternational Conference (CPCIC)in Ningbo, with over 200 attendees.

TfS Japan
BASF China hosted the internal‘Train the Trainer’ session which
focused on LCA fundamentals
and PCF Guideline introduction.

TfS Regional activities

TfS China

Message fromthe President

About TfS

TfS framework& results

TfS - a network ofsupport, education& training

TfS - a globalorganisation

Governance

TfS NA (North America)

In 2023, the TfS LATAM Regional Committee
welcomed new members to their team.

The TfS NA team worked on enhancing
its membership capacity this year.

The regional supplier training programme (available
in Spanish and Portuguese) developed in collaboration
with EcoVadis had two waves. The April sessions
had 290 participants, and the September sessions
340. In November, TfS  L ATAM launched a campaign(in Spanish and Portuguese) to raise awarenessabout the TfS  PCF  Guideline.

The team has been conducting regular meetings, engaging
with the global Workstream, and developing an improved
onboarding programme. In 2023, the NA team had over
30 members actively participating in their regional team.
Seven new members were onboarded.

Additionally, TfS LATAM launched a campaign
to encourage its members and their selectedsuppliers to explore the TfS Academy to ‘unlock
their sustainability potential’. The campaign aims
to promote sustainability within the industry andto demonstrate TfS LATAM's ongoing commitment
to the cause.

TfS Global Workstreams andRegional Operating Committees

TfS Activity Report 2023

To improve communication and engagement, the TfS NA
team carried out a series of exercises to assess challenges
and opportunities. The team plans to continue this focus
on engagement by creating a stakeholder mapping andengagement plan for North America for 2024.

New members

LATAM

TfS Regional activities

TfS LATAM (Latin America)NA
18

Message fromthe President

About TfS

TfS framework& results

TfS - a network ofsupport, education& training

TfS - a globalorganisation

GovernanceNew members

Hüttenes-Albertus Chemische Werke (HA Group),a global manufacturer of chemical products for thefoundry industry, based in Germany

This significant milestone highlights thegrowing importance of TfS in promoting andimplementing sustainability practices in thechemical industry's supply chains. With theurgent need to reduce carbon emissions andmeet regulatory requirements, TfS offers
innovative sourcing solutions that facilitate thecreation of more sustainable and collaborative
supply chains and businesses.

CMYK Color Information
IVL Blue :C 100 | M 80 | Y 6 | K30 | Pantone : PMS 288C
IVL Green : C 97 | M 2 | Y98 | K12 | Pantone : PMS 355C
IVL Red :C 2 | M100 | Y82 | K 6 | Pantone : PMS 199C

TfS Regional activities

The TfS initiative welcomed 10 companies in 2023
bringing the total number of members to 50.
Oleon, producing ingredients from various
industries using vegetable oils and animal
fats, headquartered in Belgium

RGB Color Information
IVL Blue :R 5 | G 46 | B 97 | #002e61
IVL Green : R 0 | G153 | B 51 | #009933
IVL Red :R 204 | G 0 | B 51 | #cc0033

Johnson Matthey, a British-based global
company in sustainable technologies

Synthomer, a British-based specialty
chemicals producer

Nouryon, an American global specialty
chemicals producer

Tricon Energy, an American company activein the global trade and distribution of chemicals

Momentive Performance Materials, an
American chemical company producing a portfolioof advanced silicones and specialty solutions

Yara, a global leading
crop nutrition company

TfS Global Workstreams andRegional Operating Committees

SABIC, a global diversified chemicals
company, headquartered in Saudi Arabia

New members

Indorama Ventures, a sustainable chemicalcompany headquartered in Thailand

More at tfs-initiative.com

TfS Activity Report 2023

19

Message fromthe President

About TfS

TfS framework& results

TfS - a network ofsupport, education& training

TfS - a globalorganisation

Governance

TfS Global Workstreams and Regional Operating Committees
TfS Regional activities

A truly unique feature of TfS is that members drive the initiative forward - a crucial factor in its success. Representatives of member companies ensure
progress is made through active participation in five Workstreams. These Workstreams also submit proposals to the TfS Steering Committee for ongoing projects.

TfS Global Workstreams
WORKSTREAM

1

1

Governance andPartnerships
Definition of governance structureof the initiative;
Coordination of TfS external
partnerships

WORKSTREAM

1

2

TfS Assessments

WORKSTREAM

1

3

TfS Audits

Improve and further develop TfS
Assessments;

Improve and further develop TfS
Audit programme and process;Management of the relationshipwith service provider EcoVadis,
together with TfS office

Management of the relationshipwith Audit companies, together
with TfS office

WORKSTREAM

1

4

TfS Capability
Building andCommunications

1

5

Scope 3 GHG
emissions
TfS approach to measure andreduce GHG emissions including
data collection and sharing;Engaging suppliers to improve as
well as cooperating with external
stakeholders

New members

Supplier capability building,development of training forbuyers and suppliers, internaland external communications

WORKSTREAM

Chair

Chair

Chair

Chair

Chair

Virginia Morton

Sabine Zallinger

Sven Gelissen

Rebecca Weicht

Katherine Agapitos

SIKA

WACKERLANXESS

LYONDELLBASELL

SIKA

Co-Chair

Co-Chair

Co-Chair

Co-Chair

Co-ChairChristopher Easton

Maren HübschmannPeter Saling

SYNGENTA

BAYER

BASF

Co-Chair

Sascha Ceylan

Judit Berger

EVONIKEVONIK

Co-Chair

Co-Chair

Co-Chair

Co-ChairMorne
Labuschagne

Hana Kollarova

Manuela Olivo

René Nieuwhof

HENKELSYNGENTASABIC (since

Guillaume Piet
GIVAUDAN

November 2023)
Co-ChairVerena Buback
MERCK

Co-ChairAlessandro Pistillo
BASF

TfS Activity Report 2023

20

TfS Global Workstreams andRegional Operating Committees

LANXESS(since November 2023)

Message fromthe President

About TfS

TfS framework& results

TfS - a network ofsupport, education& training

TfS Regional Operating Committees

Governance

TfS OfficeAP

TfS Asia Pacific

Chair

President in Duty

Rachel Sheridan

Robert Yang

EVONIK

ARKEMACROSS-WORKSTREAMRESPONSIBILITIESCROSS-WORKSTREAMRESPONSIBILITIESTfS Regional activitiesNA

TfS North America

TfS - a globalorganisation

The TfS office is involved with the activities of TfSWorkstreams; prepares and facilitates the meetingsof TfS bodies; is in contact with existing and potential
TfS members and cooperation partners; and onboards
new members. The TfS General Manager assumes the
day-to‑day leadership of the organisation.

Dr Gabriele Unger
General Manager

TfS Japan

Maria De Rycke
Communications Manager
New members

Chair

Atsushi Murakoshi
MITSUI & CO.

Margherita LocatelliMember Engagement Manager

CROSS-WORKSTREAMRESPONSIBILITIESClaudia Riemer
Capability Building andTraining Manager

Jakob Smets
Manager

Chair

TfS Activity Report 2023

TfS Singapore

TfS Global Workstreams andRegional Operating Committees

LATAM

TfS Latin America

Marina Vese
Manager
Chair

Sheila Tazinazzo

Thomas Holenia

CLARIANTHENKELCROSS-WORKSTREAMRESPONSIBILITIESCROSS-WORKSTREAMRESPONSIBILITIESMarion Vigier
Project Assistant21

Message fromthe President

Governance

About TfS

TfS framework& results

TfS - a network ofsupport, education& training

TfS - a globalorganisation

Governance

TfS Steering Committee
The Steering Committee is the executive body of the association.
As of June 2023, the TfS Steering Committee consists of the following persons:

TfS – an international,
non-profit association
under Belgian law
TfS General Assembly
The highest decision-making body of the organisation, the TfS
General Assembly, is composed of one CPO representative permember company who holds voting rights in the Association.
The TfS General Assembly holds an election for the TfS
President and TfS Steering Committee every two years. Bertrand
Conquéret (Henkel) served as the President for two consecutive
terms of two years each and his presidency came to an end
during the TfS General Assembly on June 13, 2023. Jennifer
Jewson of LyondellBasell was then elected as the new TfS
President for a term of two years. Representatives from BASF,
Bayer, Dow, Evonik, Henkel and Wacker were elected to the TfS
Steering Committee. This is the first time that CPOs outside ofEurope have been included in the Committee.

StevenBrughmans

ThomasUdesen

BASF

BAYER

President
Jennifer Jewson
LYONDELLBASELL

Cathy
Budd

Götz
Lauschke

DOW

EVONIK

Bertrand
Conquéret
HENKELErk Thorsten
Heyen
WACKERThe TfS team at the TfS General Assemblyat OMV offices, Vienna, 13 June 2023

Outgoing and new TfS President at the
TfS General Assembly at OMV offices,
Vienna, 13 June 2023

TfS Activity Report 2023

TfS Steering Committee TfS General Assembly at OMV
offices, Vienna, 13 June 2023

22

Learn more
TfS website

TfS YouTube channelYour information platform for all TfS info, including thelatest news on the TfS Scope 3 GHG Emissions
Programme, PCF Guideline, and TfS Academy.

Containing several videos that help you better understand TfS,
its strategy, activities, and processes.

TfS LinkedIn
Connect and follow TfS on LinkedIn to stay abreast of the latest
TfS news and activities.

TfS Academy
Capability-building hub for TfS members and their procurement
team, as well as for suppliers, to learn about the most pertinentand trending sustainability procurement topics.

Interested in joining TfS?
For more information, visit the TfS website
or contact: info@tfs-initiative.com

TfS Activity Report 2023

23

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TfS Activity Report 2023