Towards
a strong,
impactful
initiative
Activity Report2021

Table of contents04

Foreword

08

Improve sustainability performancethrough Assessments, Audits & CAPs

Bertrand Conquéret, President TfS.

Our tools to help create transparency of sustainability
performance of chemical companies.

06#TfS10years
TfS anniversary celebrations

12

TfS KPIs for Audits & Assessments

18

Scope 3 GHG Emissions
Product Carbon Footprint
calculation and sharing solution

This year, TfS celebrated 10 years of existence.
Find out how we celebrated globally and in China.

Measuring our collective effectiveness towards
transparency and positive impact.

TfS takes the lead for the chemical industry.

20

TfS Capability-Building& Training Programme
In 2021, TfS delivered over a dozen training sessions
in several languages to over 2,000 learners.

2

TfS Activity Report 2021
Table of contents

22
27

Growth of membership
Our 34 members account for €411 billion of turnoverin the chemical industry.

24

Global, member-driven
organisation
TfS is open to any chemical company aroundthe world who shares the ambition to engage
with suppliers on sustainability improvements.

TfS office
We welcomed two new team members in 2021.

28

A strong TfS Community

30

TfS Governance31

Useful resources

A member-driven initiative requires an informed andconnected community to drive it forward.

Our structure and executive body provides
a strong foundation.

Our online resources are available
at any time.

3

Dear TfS members,
suppliers and friends
The past year has been one of unprecedented
challenges, major accomplishments, learnings,
and celebration.
TfS celebrated its 10th anniversary. The vision of the founding members
was that procurement will play an essential role in making supply chainsand business at large more sustainable. Ten years later, we can be proudof our team and community achievements: TfS is recognised as the defacto global standard for sustainable supply chains in the chemical industry
whilst membership has grown from six to the current thirty-four companies
covering all segments of the chemical industry. The TfS strategy 2020-2025
has made the initiative pivot from measuring to creating impact, witha continuous and dedicated focus on accelerating the end-to-end
sustainability performance of suppliers and team member companies.

Driving innovation for increased impact
In line with the strategy, TfS has been working hard in 2021 to growfurther. We welcomed six new members: Givaudan, Chemours, Croda,
Dow, LyondellBasell and OMV. We kicked off a new TfS team in Singapore,
further enhancing the TfS mission and strategic impact through a strong andclose regional presence and support. We implemented new programmesthat will substantially increase the sustainability performance of supply
chains, and new technological solutions to optimise processes and impact.
A series of learning sessions, the availability of new information sources, theexchange of best practices among peers, and cross-cooperation between
global and regional workstreams enhanced our team performance andstrong culture of cooperation.

Looking at the future
The call for immediate action on challenges posed by climate change
is shared by all. Therefore, the ongoing development and roll-out of the
TfS scope 3 GHG emissions Product carbon Footprint programme is crucial
and a top priority for all of us. TfS is committed to deliver on the ambition!
On behalf of the Steering Committee, I would like to express mydeepest thanks to the entire TfS team and ecosystem, to all the TfS CPOs,
workstream members and regional teams, to the entire and diverse buyer
communities, suppliers, stakeholders, and strategic partners EcoVadis
and TfS Audit companies, for their passion, dedication, energy, andcommitment to the TfS initiative.
Sustainable, resilient, and innovative supply chains are more important
than ever. Therefore let us keep striving to develop and manage outstanding
responsible sourcing solutions to the benefit of people, planet, and prosperity.
Bertrand Conquéret
President TfS

4

TfS Activity Report 2021
Foreword

5

#TfS10years
TfS Anniversarycelebrations
TfS celebrated its
10th Anniversary
in 2021. Both
TfS global and
TfS China marked
the occasion
with events.

TfS Global
The TfS global anniversary celebration “TfS – 10 years
in the future” brought together inspirational, high-levelspeakers from all over the world. Focusing on the future of
TfS, they participated in lively and animated panel discussions
presenting trends and topics that will affect sustainable supply
chains and businesses over the next 10 years. Peter Bakker,
of WBCSD, delivered the keynote speech. Founding members
and key partners reflected on whether TfS delivered on its
original vision and looked to the future. Chemical associationsof Europe and China debated the joint quest for chemicalindustry leadership in making the world more sustainable
and shared their opinion and outlook for TfS. A panel
with CPOs of three TfS member companies shared theirexperience of applying the TfS concept and programme.
Chemical suppliers from Brazil, China, and Poland told how
applying the TfS concept transformed their organisations
into sustainable businesses. Technology and IT experts
discussed technology as an enabler for more sustainablesupply chains and businesses.
The celebration gave the TfS stakeholder community theopportunity to learn about TfS and its activities, as well assustainability, supply chains and sustainable businesses ingeneral. Attendees could witness the results of leadershipand get inspiration for future strategies and actions.
A dedicated website provides on-demand access to allpresentations and panel sessions. Downloadable content
is available in English, Chinese, Spanish, and Portuguese.

6

To support the roll-out of #TfS10years, TfS developed the following videos:“A personal story of TfS”

“TfS – a force for good”

TfS Activity Report 2021
#TfS 10years

Together for
Sustainability Initiative
携手可持续发展倡议 十周年庆典
宁波, 2021年10月26日

TfS China
TfS China organised its 10th anniversary celebration in Ningbo
on October 26, 2021. Representatives of member companies
and their chemical suppliers together with chemical industry
experts reviewed TfS achievements in China, shared bestpractice in the field of sustainable supply chain management
and expressed hope for the continuous sustainable developmentof China’s chemical industry. At the event, TfS presented awards
to chemical suppliers who have made outstanding achievements
in improving their sustainability. We hope this will encourage
more Chinese chemical companies to transition to a sustainable
development path.

The industry experts discuss sustainable chemical supply
chain management

Li Shousheng, Chairman of the China Petroleum andChemical Industry Federation (CPCIF) used his speech tohighlight successful cooperation with TfS including building
a community for sharing expertise and promoting global
practice standards for sustainable supply chains in China.

Robert Yang, Arkema Asia Pacific Procurement Director,
Goods and Services, and TfS APAC President in Duty
reviews TfS achievements in the past 10 years

Li Shousheng, Chairman of CPCIF, at the Ningbo celebration

7

Improve sustainability
performance
Audits, Assessments
and CAPS
TfS develops and implements a global supplierengagement programme to assess and improvesustainability practices within the supply chain ofcompanies from the chemical sector. This enables
TfS members to measure the Environmental,
Labour and Human Rights, Ethical and Sustainable
Procurement performance of their suppliers.
The ultimate purpose is to drive and deliver tangible
and measurable improvements of both suppliers
and TfS member companies.

To achieve this, TfS conducts Assessments and Audits.
These help to create transparency in the sustainability
performance of chemical companies and their suppliers,
providing a solid basis for collaboration among members.
Tangible improvements are facilitated by the Corrective
Action Plan (CAP), providing an overview of outstanding
actions to improve performance. Data mining of TfS
Assessments and TfS Audits enables TfS to focus
on those areas where the biggest improvements canbe made.

TfS Methodology
Key concepts& terminology
TfS Sharedinfrastructure
Includes standardised tools – Assessments and Audits –and creates transparency of the sustainability performanceof chemical companies and their suppliers across the globe.
Creates transparency for sustainability performance
improvements.
Uniquely, the results of TfS Assessments and TfS Audits
are shared with all TfS members (with supplier consent).
Both TfS member companies and their suppliers benefit
from this information-sharing; for suppliers it reduces thebureaucratic burden of multiple requests for sustainability analysis.
This ensures more time and energy can be spent on the
improvement of sustainability performance.

8

TfS Activity Report 2021
Improve Sustainability Performance

TfS Assessment

TfS Audit

An evaluation of a supplier’s sustainability management
approach and performance.

On-site evaluation of a company’s sustainability practices.

Based on an online questionnaire tailored to the specificitiesof the chemical industry, supported by documents providing
proof of implementation.
Conducted by TfS key partner and service provider EcoVadis,
a global leader for CSR Assessments.

Visit conducted by an independent TfS-approved
external auditor.
Conducted at site level.
Includes supplier business location (production siteor warehouse).
The supplier’s sustainability performance is verified against
criteria - tailored to the requirements of the chemical industry encompassing: Management, Environment, Health & Safety,
Labour & Human Rights, and Governance.

Usually conducted at group level.
Results of the analysis are combined on a scorecard,
accessible by both suppliers and TfS members.
The scorecard summarises the strengths and improvement
potential relating to the four TfS focus areas (Environment,
Labour & Human Rights, Ethics and Sustainable Procurement).
A vital instrument for suppliers to improve their sustainability
performance and to collaborate with TfS members on theirindividual Corrective Action Plan (CAP).

Yields a Corrective Action Plan (CAP) so that suppliers
can work on tangible sustainability improvements.
Audits are not a certification or a “pass or fail” exercise
for suppliers; they are the starting point of a constructive
dialogue between the supplier and TfS member.
Valid for 1-3 years (depending on the results).

Valid for 1-3 years (depending on the results).

CAP(Corrective
Action Plan)

Mining of TfS
Assessment
and Audit data

Both the Assessment and Audit will resultin a CAP, which is a series of actions
that allow our members to take action to
make tangible improvements in theirown supply chains.

To move from measuring scores to creating tangible impact, TfS must capitaliseon the improvement potential provided by TfS Assessment and TfS Audit data.
Data mining is an instrument for TfS members to focus on the most impactfulimprovement areas with their suppliers. The analysis of TfS Assessment and
TfS Audit data provides a direction for capability-building in target countries.

+ 0.9

36.9 vs 36.0
SUP

9

TfS Assessments
TfS Tier-N Project
Multi-Tier transparency (insight
into suppliers’ direct suppliers)
along the whole value chain
provides a better understandingof sustainability practices.
Customers expect suppliers
to be fully informed about thesustainability of their supply
chains and raw materials.
Supply chain management,
including multi-tier transparency, is becoming increasingly
important for risk management enabling a much faster reaction
to any supply chain crisis.

TfS successfully completed
a pilot project on multi-tiertransparency conducted via the
EcoVadis platform. Seven TfS
members participated in the
Tier-N project and engaged their
Tier-1 suppliers to invite their own
suppliers (Tier-N) to conduct anAssessment. In total, 18 Tier-1
suppliers have actively used thefeature and invited 137 Tier-N
suppliers.

Participation in the pilot provided
TfS members with valuable
information for discussions
with their direct suppliers on
the sustainability of their supply
chain and indicated what needs
improvement for TfS members tomake a positive impact on their
supply chain.

TfS Multi-Tier
Transparency Project

TfS Member Company
10

Tier-1

Tier-nTfS Activity Report 2021
Improve Sustainability Performance

TfS Audits
Remote Audits
Covid19 restrictions resulted in a decrease in on-site Audits
in 2020, with remote Audits proving a valuable alternative.
To ensure their effectiveness, TfS has started a benchmarking
study of these remote Audits. As the initial sample size wassmall, we encourage our members to increase the numberof remote Audits conducted and will consequently update
our benchmarking study at the end of Q2 2022.

SMETA and PSCI Audit Pilot
In 2021 we accepted 22 SMETA and 2 PSCI Audits. The TfS
Steering Committee voted to prolong the pilot to accept SMETA
and PSCI Audits to June 2022. At the end of the pilot phase,results will be evaluated to decide on future TfS Audits diversity.

SQAS
To avoid duplication of Audits, increase acceptance by
suppliers and save resources, TfS and SQAS agreed tocooperate on Audits in 2016. In 2021, we received 21 SQAS
Audits - a similar quantity to 2020. In 2022, the SQAS programme
is inviting more assessors to follow online training for specificmodules. This could increase the number of countries where
SQAS Audits can be made both within and outside Europe.

New Audit-sharing database

In April 2021, we launched our new Audit database - OASIS(Online Audit Sharing IT Solution). This platform enables auditors,
members, and suppliers to join activities to improve Labour,
Governance, Health & Safety and Environmental conditions
in supply chains:•	Suppliers are - for the first time - included in TfS online activities,
providing feedback on their respective Corrective Action Plans.
•	Members can follow-up all the Corrective Actions in their network,and approach suppliers in their improvement cycle after the Audit.
•	Members can keep track of their KPIs on the number of Audits aswell as improved findings.
•	Auditors are more involved in the process as they upload the Audits
and have access to the progress on Corrective Actions.
This database will become a great tool to link Audit findings to theproper training and to perform a thorough data analysis on trendsin Audit outcomes.

11

CAPS & Data Mining
TfS Assessments
To perform not only a quantitative but also a qualitative analysis of the data/scorecards,
TfS uses Tableau software for business intelligence and analytics. Tableau enables TfS
to pinpoint the main strengths and weaknesses across all scorecards and identify theparameters linked to the lowest scores.
Analysis of average scores per parameter indicates that, in 2021, Labour & Human Rights
achieved the highest while Sustainable Procurement the lowest scores.

Sustainability performance of TfS Suppliers

5,817
Suppliers

48.9

50.0

51.9

46.5

40.1

Overall Score

ENV

LAB

ETH

SUP

Benchmarking the results of TfS suppliers and supply chains against non-TfS average scoresdemonstrates that TfS suppliers consistently rank above the overall EcoVadis population of rated suppliers.

Benchmarking TfS suppliers vs all Assessments in the last three years

11,116 vs 88,489
Companies

+ 2.9

+ 3.7

+ 3.2

+ 2.1

+ 1.6

46.7 vs 43.8

47.5 vs 43.9

49.8 vs 46.6

44.0 vs 41.8

37.9 vs 36.3

Overall Score

ENV

LAB

ETH

SUP

The 3,858 TfS Supplier re-Assessments in 2021 showed an improvement score of 64%.
Across all those re-assessed suppliers, the improvement is 4 points in the overall score, whereby
the improvement in the section LAB (Labour & Human Rights) is the biggest with 4.3 points.

Sustainability improvement of TfS Suppliers

3,858
Suppliers

12

+4

+ 4.1

+ 4.3

+ 4.1

+ 3.0

Overall Score

ENV

LAB

ETH

SUP

TfS Activity Report 2021
Improve Sustainability Performance

TfS Audit Findings
Data mining and analysis of TfS Audit results also provide
a wealth of improvement opportunities for suppliers. TfS
Audits cover five categories: Management, Environment,
Health & Safety, Labour & Human Rights and Governance,
which are analysed through 150 standardised questions ineach supplier Audit.

TfS Audits
cover

5

categories:
1 Management
2 Environment
3 Health & Safety
4 Labour & Human Rights
5 GovernanceFor 2021,

196
2,495

For 2021, TfS analysed 196 Audits, which uncovered 2,495
findings. Most of these concerned Management, thoughthese tend to be minor issues. The aspect of Business Partners getting transparency and assurance on their sustainability
standards - stands out and highlights the importance of
responsibility beyond tier-1 suppliers.
The most common Environmental issues relate to
Emissions to Air and Climate Change. In Health & Safety,
Emergency Preparedness was the most recurrent issue
across suppliers and regions.
As for Human Rights, data analysis revealed most findings
are related to working hours and wages.
Most of the critical Audit findings appear in the Labour & Human
Rights as well as in the Health & Safety section and this is where
immediate action is required.
In 2021, 30 follow-up Audits were conducted, involving
around 500 findings. 66% were improved. Health & Safety
had the highest level of improvement (75%), followed byEnvironmental (71%). Health & Safety topics are also themost common reason for a follow-up, as they account for
30% of all reviewed findings.

Audits were analysed
by TfS, which uncovered

findings - mainly minor.

13

TfS KPIs for Audits& Assessments
TfS Methodology
Key Terminology
TfS KPIs
Rationale
TfS KPIs for Assessments and Audits create transparency
and positive impact; the sharing of Assessment and Audit
results enables a dialogue on improvement between
member company/customer and supplier. Many suppliers
demonstrated sustainability improvement after an evaluation
through the TfS programme.
Self-defined targets also strengthen the responsibility andownership of member companies for their TfS Assessments
and TfS Audits and follow-up.

How are TfS KPIs defined
In line with their sustainability strategy and ambition, each
TfS member company defines its own annual target tocontribute to the TfS KPIs. The aggregation of each ofthese targets forms the global KPIs that the TfS community
is collectively working towards. The KPIs reflect the idea that,whilst each TfS Member has its own individual strategy,
through collaboration these contributions are amplified.

14

TfS Activity Report 2021
TfS KPIs for Audits & Assessments

TfS Assessment KPIs
Target10,000

Actual11,167

Target5,000

Actual5,817

Target60%

Actual
64%

KPI 1

KPI 2

KPI 3

TfS Assessments
actively managed
by TfS members

TfS Assessments
conducted & sharedacross TfS members

New Assessments& re-Assessments

Target achieved by: 112%

Target achieved by: 116%

Target achieved by: 107%

Against a backdrop of continued global uncertainty and considerable business challenges, TfS members
performed well regarding the Assessment KPIs. The strong or solid KPI results show the robustness of the TfS
methodology with its (online) tools – TfS Assessments. They are also a testimony to the resilience of the supply
chains of our members and their ability to improve sustainability performance despite the challenging times.

TfS Audit KPIs
Target800

Actual743

Target450

Actual
284

KPI 1

KPI 2

TfS Audits
actively managed
by TfS members

TfS Audits
conducted & sharedacross TfS members

Target achieved by: 93%

Target achieved by: 63%

2021 was the first time TfS members proposed and worked towards self-defined Audit targets.
With 450 forecasted Audits the ambition was high in an uncertain global situation influenced by Covid19.
Although site access was less of an issue in 2021 vs. 2020, planning and availability constraints, alongwith market uncertainties, resulted in the completion of 284 Audits.
Thanks to the OASIS database, more resources could be focused on supplier improvement. Increasingly,
suppliers are directly involved in the online process and can be approached by several members to discuss
their progress. TfS members can follow live progress on the most important findings. Throughout 2022, wewill aim to increase activity on CAPs, and supplier improvements and develop additional improvement KPIs.

15

Supplier Improvements 2021
Documented in TfS Assessment or TfS Audit follow-up or re-Audits

2,512
total supplier improvements

Regional Perspective
TfS member companies prioritise those suppliers who represent the highest sustainability risk for a TfS Assessment or TfS Audit.
While Assessments are, in many cases, conducted at group level, an Audit concerns a single geographic site.

16

TfS Activity Report 2021
TfS KPIs for Audits & Assessments

Footprint
More than

17,500
Suppliers evaluated since creation of TfS

To date, TfS has evaluated more than 17,500 suppliers globally. The resulting data provides transparency
on how a significant proportion of the chemical industry is operating in terms of sustainability.

TfS Assessments per region 2021

TfS Audits per region 2021

Asia pacific ................................................................................... 28%

Asia pacific ............................................................................... 73.5%

Europe ........................................................................................... 46%

Europe ............................................................................................13%

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

N America ....................................................................................... 5%

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

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

Other .................................................................................................. 4%

Other .............................................................................................. 0.5%

TfS Assessments top 3 countries

TfS Audits top 3 countries

Germany

16%

China

China

15%

Brazil

8%

USA

13%

Germany

6%

64%

17

Scope 3
GHG Emissions
Product carbon footprint
calculation & sharing
solution
The TfS Scope 3 GHG emissions Product Carbon Footprint
calculation and sharing solution will create transparency on
GHG in the chemical supply chain, enabling effective reduction
management.
Many companies currently estimate greenhouse gas (GHG)
emissions of their purchased goods based on global emission
factors or generic information. To monitor reduction efforts forsuch “purchased emissions”, data at product- and supplier-level
are required. This is known as Product Carbon Footprint, or PCF.
There is currently no harmonised approach amongst companies
how to calculate PCF, and the limited available data is often
not directly comparable. Many industries are facing the samechallenges and are developing specific solutions.

PCF Calculation and sharing solution
TfS takes the lead for the chemical industry and will develop a
drop-in solution for chemicals that connect with other initiatives.
We have already started to develop a guideline to measure
GHG emissions data, design a data collection & sharing
approach, engage with suppliers to improve, and co-operatewith external stakeholders.

Guideline for the chemical industry
TfS will develop a guideline for the chemical industry on how
to calculate PCFs of products. Based on this guideline, suppliers
will be able to provide PCF data to TfS members. TFS members
will, in turn, use those PCFs for the calculation of their individual
GHG-upstream (or scope 3-upstream) emissions.
The guideline will build on existing standards, provide additional
guidance for specific accounting issues, be ISO-compliant andreviewed by the ‘GHG Protocol’.

18

Global ambition
TfS will partner with major non-governmental organisations
and other relevant partners, such as the World Business Council
for Sustainable Development (WBCSD), the GHG Protocol,
the Science-based Targets initiative, etc.

Delivery of the supplier guideline andengagement with suppliers and peers
TfS will launch the guideline targeting suppliers of the chemicalindustry and beyond by the end of Q1 2022. This will support
suppliers with an efficient, clear, and comparable PCF calculation,
giving clear instructions for verifiable PCF calculation andautomated data processing.
To support the launch, TfS will also step up its support activities
for suppliers and TfS members by providing basic training
materials, thereby simplifying the use of the methodology andensuring wide application.

TfS Activity Report 2021
Scope 3 GHG Emissions

Programme timeline
2021

2022

2023

Global solution for thechemical industry

Contribution to Global
standard

Guideline for suppliers

Guideline for member
companies

Liaise withstakeholders

Develop tool/platform

Start pilot

Roll-out

Accelerated
development

19

TfS Capability-Building
and Training Programme
The TfS Capability and Training
Programme continues to engage
more and more learners
TfS member companies drive continuous sustainability
improvements in their global supply chains. The TfS Capability
and Training Programme is core to these endeavours and in 2021
it has managed to train a record number of over 1,800 learners.

Upskilling supplier companies
With global supply chains, come global learners. In 2021,
TfS delivered over nine training sessions in several languages
to over 1,800 learners. This helps suppliers to upskill and drive
sustainability improvements in their businesses as well as intheir own supply chains.
Together with EcoVadis, TfS conducted supplier training
in North and Latin America, Europe and China dedicatedto supporting their Assessments and follow-up.
TfS also co-hosted training focussed on the follow-up to
an Assessment. Drawing upon case studies in the areas ofLabour & Human Rights Policies, Whistle-blower Procedures,
Environmental Reports, and Sustainable Purchasing Policies,
the webinars covered the corrective actions necessary to
remedy findings.

9webinar training sessions were
provided in English, Chinese,
Spanish and Portuguese

Over

1,800
Participants attended the
EcoVadis webinars

92.6%
Of attendees found thewebinars to be usefulIn addition to the Q&A sessions, the post-training review
questionnaires provided important insights and opened
opportunities for dialogue with suppliers for further improvement.

Rollout of the TfS Academy:
The one-stop shop for sustainability upskilling
TfS has begun the rollout of its new TfS Academy – a one-stop learning environment for TfS member companies’ buyers
and suppliers. The Academy helps to upskill the TfS community in topics related to sustainability and responsible sourcing.
The Academy launched with 250 e-learnings, guidelines, webinar recordings, and quick reference guides in sevenlanguages (English, Chinese, Spanish, Portuguese, Japanese, Vietnamese, Bengali). They are suitable for all levels of
experience (beginner, intermediate, and advanced) and roles (from blue-collar to C-Suite). The learning content covers
aspects across the evaluation pillars in both the TfS Assessments and Audits: Environment, Governance, Health and
Safety, Labour and Human Rights, Management, and Sustainable Procurement.
Training content is particularly helpful for suppliers who want to prepare for an Audit or Assessment; those who want to
act on findings; and the buyer who accompanies this process. Buyers can use the Academy to integrate learning goals
in their supplier dialogue to foster continuous improvement.

Launch in Q1/2022
The soft launch of the TfS learning platform took place on December 15, 2021 with a selected pilot group.
The public launch is planned for Q1/2022.

20

TfS Activity Report 2021
Upskilling Buyers & Suppliers

Feedback on the training provided was very positive:“Intuitive tool and very
attentive support
team, which makes
it easy to understandwhen filling out therequirements.”“I thought it wasvery importantfor our perfectunderstandingof what needs
to be filled out.”“It is very interesting
to know how we
can improve as
suppliers onsustainability topics.”“Very well-structured
webinar. The team that
presented masters the
subject very well andwere very clear.”In addition to the Q&A sessions, the post-training review questionnaires
provided important insights and opened opportunities for dialogue with
suppliers for further improvement.

21

Growth ofmembership

2021 has been a very successful year
in terms of membership growth.
The following companies joined TfS:

Chemours

GivaudanA global chemistry company delivering Titanium
Technologies, Thermal & Specialised Solutions,
Advanced Performance Materials, andChemical Solutions

A global leading company in taste and wellbeing,
and fragrance and beauty

Croda
A global speciality chemicals company

Dow
An American plastics, chemicals, and agricultural
products company

LyondellBasell
A Dutch plastics, chemicals, and refining company

OMV
An Austrian integrated oil, gas, and petrochemicalcompany. OMV takes over the TfS membershippreviously held by daughter company Borealis.

The growth of membership to 34 companies increases TfS’s reach and impact on the sustainability
performance in chemical supply chains around the world. Our network of member companies both large and small - represents all segments of the chemical industry.

22

TfS Activity Report 2021
Growth of membership

€411
€267
34
members
TfS membership at 31/12/2021

billionGlobal turnover of TfS member companies
in the chemical industry 1

billionGlobal spend of TfS member companies
in the chemical industry 2

1 As per TfS member companies published Annual Reports 2020
2 Estimated figures

23

Global Member-driven
organisation
TfS is Global
Chemical supply chains are complex and global, therefore TfS
maintains an inclusive approach and is open to any chemicalcompany around the world who shares the ambition to engage
with suppliers on sustainability improvements.
Growth of membership is essential for TfS to increase its
reach and impact on the sustainability performance of chemical
suppliers and member companies.
While two US, one British, one Austrian, one Dutch and one
Swiss company joined TfS in 2021, TfS wants to grow in otherregions in the world as well. China is a priority, as are othercountries in the Asia-Pacific region, specifically Japan, India,
and Singapore. Developing and fostering regional partnerships
is crucial for TfS to increase membership, work on supplierimprovement programmes and specific topics of joint interest.

TfS Regional Operating
Committees - Update
Through its network of Regional Operating Committees,consisting of representatives of TfS member companies
in the region, TfS ensures that the implementation of its
programme is properly supported globally. Partnerships
and close cooperation with regional chemical associations
enable TfS to advance its regional impact and reach potential
new member companies. To enhance the supplier improvement
process, Regional Committees also play a crucial role in the
successful roll-out of supplier training.
TfS was therefore very happy to support members in theformation of the TfS Singapore Regional Committee. TfS
Singapore represents a milestone for TfS regarding expanding
its reach into Asia as well as progressing in its global mission
to push the sustainability performance of chemical suppliers
around the world in both mature and emerging markets.
TfS Singapore will drive sustainable supply chains in thechemical industries in Singapore, Southeast Asia and beyond
and will ensure engagement in the chemical ecosystem.

24

TfS Activity Report 2021
Global Member-driven organisationAP
TfS China
The major highlight in 2021 was the organisation of the TfS 10th Anniversary event in
Ningbo. At the event, six suppliers received a
Top 3 Best Improved Supplier award for online
Assessments and online Audits.
TfS continued its successful cooperation with
CPCIF, focusing on organising joint industry
and other training events and awareness raising
activities.
TfS China successfully increased its outreachefforts; Robert Yang, TfS AP President in
duty, delivered keynote and other speeches atseveral key events and the number of followersof the TfS WeChat account increased to 2,974
The regional supplier training programme,in cooperation with EcoVadis, delivered
significant results: 381 participants for the firsttraining in Chinese on 12 April, 313 participants
for the second training in English; and 208
participants for the third training in Chinese.

TfS Singapore

LATAM
More than 650 participants of suppliercompanies of the TfS LATAM region attended
the webinars on the Onboarding Process,Improvements and Correction Action Plan in
Portuguese and Spanish.
TfS LATAM has been reaching out broader
and deeper in the Latina American community in countries like Brazil, Argentina, Chile,
Colombia, Peru, and Mexico, connecting withapproximately 1,100 suppliers who benefited
from the supplier training programme.
This raised the interest of the chemical
supply chain.
TfS LATAM will continue to encourage
supplier process improvements. The teamalso reached out to and cooperated withother regional teams and global workstreams,
enabling better integration of the TfS LATAM
team into the global TfS initiative.

NA
As the TfS membership grows, the TfS NA
Regional Committee welcomed many new
faces, and their fresh look was valuable inhelping to shape the structure of the team.
North America supported the global training
initiatives and was also the location for manysuccessful training events in 2021, holding
both member training and supplier training
multiple times during the year.
TFS NA was the headline sponsor for theChemical Week Financial Outlook & Sustainability Conference.
To identify new best practices, the teamperformed a benchmarking exercise on theAssessment nomination process. This will bevery helpful for member companies as theyplan for 2022 activities.
Finally, the TfS NA team partnered with
Rutgers’ Business School’s Supply Chain
Management Industry Client Projects
programme to evaluate the sustainability
organisational landscape in North America
and completed a SWOT analysis.

Representatives from member companies
Henkel, Arkema, Azelis, Semperit, Solvay andSyngenta created the TfS Singapore Regional
Operating Committee. TfS member Evonikjoined the team – which is open to all TfS
member companies - later. The creation of TfS
Singapore is major step forward to increase
the TfS footprint in the Southeast region.
By sharing experiences and combining
resources and scale, TfS Singapore aims
to drive sustainable supply chains in thechemical industries in Singapore, Southeast
Asia and beyond.
TfS Singapore is increasing its engagementin the chemical ecosystem. Initial discussions
have commenced with the Singapore
Chemical Industry Council to explore
opportunities for cooperation. TfS Singapore
will continue to connect with other TfS
members, welcome new members to join
the team, and strengthen its collaboration
with suppliers and business partners.

25

Tfs Global Work Streams andRegional Operating Committees
Overview
TfS progress is driven by five Work Streams, each one responsible for developing and managing
different projects. As a true member-driven initiative, the Work Streams are composed of representativesof TfS member companies. TfS Work Streams also submit proposals to the TfS Steering Committee
for ongoing projects. Active participation of TfS members is crucial to the success of the initiative.

TfS Global Work Streams
Work Stream 1
Governance and Partnerships

Chair

Co-Chair

Co-ChairLaurent Lhopitalier(Sanofi)Morne Labuschagne(Lanxess)

Virginia Morton(Sika)

Chair

Co-Chair

Co-Chair

Sabine Zallinger(Wacker)

Judit Berger(Evonik)

Athina Michalakopoulou
(UPM)

Chair

Co-Chair

Co-ChairChristopher Easton(Syngenta)

Sascha Farooq(Evonik)

Sven Gelissen(Lanxess)

Chair

Co-Chair (until 11/2021)

Astrid Bosten(Henkel)Sila Vogiatzaki(Clariant)

Chair

Co-Chair

Co-Chair

Co-ChairMichael Heite(Bayer)Jens Plambeck(Bayer)Peter Saling(BASF)

Verena Buback(Merck)Definition of governance structureof the initiative; Coordination TfS
external partnerships

Work Stream 2
TfS Assessments
Improve and further develop TfS
Assessments; Management of therelationship with service provider
EcoVadis, together with TfS officeWork Stream 3
TfS Audits
Improve and further develop TfS Audit
programme and process; Management of the relationship with Audit
companies, together with TfS officeWork Stream 4
TfS Capability Building
and Communications
Supplier capability building,development of training for buyers
and suppliers, internal and external
communications
Work Stream 5
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

26

TfS Activity Report 2021
Global Member-driven organisation

TfS Regional
OperatingCommittees

TfS AP

TfS SINGAPORE

TfS LATAM

TfS NA

Chair & TfS AP
President in Duty

Chair

Chair:

Chair

Robert Yang
(Arkema)

Thomas Holenia(Henkel)Sheila Tazinazzo(Clariant)

Rachel Sheridan(Evonik)

Cross Work Stream resposibilities

TfS Office
The TfS office team welcomed
Rebecca Weicht and Margherita Locatellito the team in 2021.

2

1

Rebecca Weicht, TfS Capability Building
and Training Manager, leads the developmentof our practice-oriented programme forboth supplier and buyer communities.
Margherita Locatelli, TfS Project Assistant,is responsible for all TfS office administrative
tasks. In addition, she is involved in Auditrelated tasks, supports the organisation of
TfS meetings and events, and communication
activities.
The members of the TfS office are involvedin the activities of the TfS Work Streams,
prepare, and facilitate the meetings of TfS
bodies and are in contact with existing andpotential TfS members and cooperation
partners. The TfS General Manager assumes
the day-to-day leadership of the organisation.

4

3

6

1	
Dr Gabriele Unger
General Manager
2 Maria De Rycke
Communications Manager

5

3 Margherita Locatelli
Project Assistant
4 Jakob Smets
Manager
5 Marina Vese
Manager
6 Rebecca Weicht
Capability Building and Training Manager

27

A strongcommunity
A strong and successful member-driven initiative requires an informed
and connected community to drive it forward. TfS initiatives enhance
information-sharing and exchange of best practice within this community.
All information exchange happens in full compliance with anti-trust laws.
Strengthening theLeadership Community
TfS is a global platform of chemical industry leaders aiming topositively shape the sustainable future of the chemical industry.
Operating as a peer-to-peer network, TfS enables CPOs from its
34 member companies to share ideas, exchange best practices onsustainability activities, learn from and be inspired by their peers.
TfS organises CPO discussions four times a year, around the
TfS Steering Committee meetings and at the General Assembly.
Topics discussed in 2021 included supplier sustainability
consequence management, Supplier engagement throughpurpose-driven procurement, GHG targets and PCFs for a
product portfolio and supplier CO2 management PCFs, and theprocess of supplier prioritisation for Assessments and Audits
as well as experience with climate related financial disclosure.

Connected and Informed
TfS Community
For TfS to grow and become more impactful, a more connected
and informed TfS Community is a prerequisite. This happens
through information-sharing and the exchange of ideas on aregular basis.

TfS Talks
TfS organised four #TfSTalks in 2021 reaching an average
audience of 143 stakeholders:•	“Merck company use case on conflict minerals”(Nina Baumann, Sustainability Manager, Merck)•	“Human Rights due diligence in line with UNGP”(Petra Lehmann, Sustainable Procurement Manager,
AkzoNobel; and Janina Lukas, Head of Ethics & Social
Impact, Bayer)•	“GHG Scope 3 emissions: Product Carbon Footprint”(Norbert Mahr, Director Supplier CO2 Management
Programme, BASF, and Dr. Yvonne Heischkel, Supplier CO2
Management, BASF)•	“From Risk Mapping to TfS Audit/Assessment follow-up:
How to involve your buyers”, (Petra Lehmann, Sustainable
Procurement Manager, AkzoNobel; and Morne Labuschagne,
Head of Sustainability and Governance, Global Procurementand Logistics, Lanxess)
Each of the four #TfSTalks were followed by a lively Q&A session.

#TfSTalks are online discussions on sustainability topics ofjoint interest to the TfS community. During each webinar, a TfS
member presents their best practice around a specific and joint
sustainability topic and encourages discussion and exchangeof learnings. #TfSTalks are scheduled every quarter.

The four #TfSTalks organised in 2021

Webinar invitation

Conflict Minerals
Use Case Merck
Presentation and interactive discussion

Nina Baumann
TfS Coordinator Merck

28

WHEN?

13 JANUARY 2021

HOW?

MS TEAMS – DETAILS BELOW

13:00 - 14:00 CET

TfS Activity Report 2021
A strong community

The TfS newsletter - #TfSConnect - provides insights,
updates, and background information on the TfS initiative
to the broad internal TfS community. All TfS stakeholders
are encouraged to share the newsletter with their buyers,
as well as CSR, Investor Relations, Public Affairs, Human
Resources colleagues and the CEO Office.
#TfSConnect reports on new initiatives and progress
made on the four pillars of the TfS strategy 2020-2025:
Higher Standards, Collaborative Action, Stronger Community,
and Strategic Extension.

Parallel breakout sessions focused on key topics addressedby the different workstreams. These included a discussion on
Human Rights as a crucial area for all TfS member companies
and the results of a survey to better understand the needs sharedby all in this regard. Members also addressed the difficulties
they encounter in nominating suppliers for TfS Audits and were
informed on the developments of Remote Audits. Participants
were invited to offer their suggestions on the way forward for the
newly implemented Capability Building programme and Tier-N
project. Finally, the concluding plenary session outlined theobjectives and challenges for decarbonising supply chains.

To provide broader insights, new articles occasionally crossreference to articles already published on the TfS website
or TfS SharePoint. Contact details of all workstream members
are included with each article, facilitating further networking
and exchange of information among the TfS community.
Previous editions of the newsletter are stored in an “Archive”
as a useful source of information.
#TfSConnect was published in March and October 2021.
The global #TfSConnect community has, since March,grown from 177 to over 850 subscribers.

TfS Annual Workshop
The TfS Annual Workshop took place online on 29 September
2021 and brought together more than 80 participants fromTfS Member companies from across the globe.
TfS President Bertrand Conquéret expressed gratitude
for the resilience, passion, and energy everyone devoted
to building the foundations of TfS over the past 10 years.
He also thanked those who will continue improving TfS
in the next decade with a commitment to grow, deliverand create impact.

Figure: First #TfSConnect
newsletter published in March 2021

29

TfS
Governance
TfS is an international, non-profit association under Belgian law.
TfS General Assembly
The highest decision-making body of the organisation, the TfS General Assembly is composedof one CPO representative per member company who holds the voting rights in the Association.
The TfS General Assembly 2021 unanimously approved an update of the TfS Articles of
Association including the use of online meetings for all bodies of the association in line with
the new Belgian Law on Companies and Associations.
Every two years, the TfS General Assembly elects the TfS President and the TfS Steering
Committee. In the most recent election of May 18, 2021, Bertrand Conquéret, Henkel, wasre-elected as TfS President for a second and final term 2021-2023. Representatives of Henkel(President) and BASF, Bayer, Clariant, Merck, Solvay and Wacker were elected to the TfS
Steering Committee.

TfS Steering Committee
The Steering Committee is the executive body of the association.
As of May 2021, the TfS Steering Committee consists of the following persons:

1

1 President: Bertrand Conquéret - Henkel
2 Steven Brughmans, BASF
3 Joachim Christ, Merck
4 Lynn De Proft, Solvay
5 Erk Thorsten Heyen, Wacker
6 Markus Mirgeler, Clariant
7 Thomas Udesen, Bayer

30

2

3

4

5

7

6

TfS Activity Report 2021
Useful resources

Usefulresources
TfS YouTube
channelContaining several videos that
help you better understand TfS, its
strategy, activities, and processes.

TfS
LinkedInTfS Anniversary website
Keynote, speeches, and panel session recordings of the global TfS Anniversarycelebration “TfS – 10 years in the future” are available. View or download videos
in English, Spanish, Portuguese and Chinese.

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

TfS website
Your information platform for all TfS info, latest news, videos, supplier academy, etc.

Interested to join TfS?
For more information – visit the TfS website
and contact info@tfs-initiative.com

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tfs-initiative.com© Together for Sustainability, 2022