OUR APPROACH AND PERFORMANCE

At SABIC, the supply chain is managed globally by the Vice President, Global Supply Chain, who reports to the Executive Vice President, Petrochemicals. Sourcing is managed by the Global Supply Chain Sourcing and Excellence department, whose Director reports directly to the Vice President as part of the Global Supply Chain leadership team. Sustainable Procurement is a separate function under Corporate Shared Services; its General Manager reports to the Shared Services Executive Vice President, who reports directly to the CEO.

This year, our focus on strategic execution and operational excellence resulted in strong overall performance from Global Supply Chain, including sustainability. We introduced a Global Supply Chain Excellence Framework to enhance reliability, agility, resilience, and efficiency, and to stimulate innovation.

The framework helps to deliver dangerous-goods documentation, supplier qualification, Safety and Quality Assessment for Sustainability–program compliance, key performance indicators (KPIs) for sustainability and safety, incidence reporting, reporting best-practices, regular enterprise risk management assessments, risk management and business continuity plans, abnormal-situation plans, and crisis management.

We continued to use our Supply Chain Performance Management program, launched in 2017, to rapidly scale up our sustainability performance. This key tool provides a visual snapshot of our supply chain sustainability performance. This year, our average transportation intensity factor was 12.6 grams of carbon dioxide equivalent per ton-kilometer transported (g CO2eq). Compared to the overall 2017 result, this is not an improvement because we included more detailed data, including significantly more road transportation. We did make reductions in some areas.

In an effort to increase transparency, SABIC is pleased to report our absolute supply chain (scope 3) emissions for the first time. These totaled 2,360 kilotons of CO2eq in 2018, which is 4.01 percent of SABIC’s overall emissions.

Every year, we continue to raise expectations for our supplier networks’ sustainability performance by more deeply integrating sustainability into our systems and management approach. This year, we revamped our system for selecting and evaluating logistics service providers to further embed sustainability into our decision-making process.