Sustainable & Responsible

CSM is committed to protecting the environment and doing business with ethically and socially responsible vendors.

We continue to strive to integrate the principles and practices of sustainability into the procurement of all goods/services that we source on behalf of our vessel customers.  This is known as ‘Sustainable and Responsible Procurement’.

As a major purchaser of goods & services, CSM has tremendous influence, not only in setting its own specifications and requirements, but also in influencing the standards of our suppliers.  Yet, many are unaware that through communicating our purchasing priorities, every vessel and/or user of goods and services at CSM has the potential to magnify our progressive sustainable and responsible initiatives in energy, technology, waste processing and community development with our suppliers.

As a global company, CSM understands the importance of good corporate citizenship, and given its vessels are operating responsibly in both emerging and developed markets, recognises that it is often a significant employer, contributor and also a consumer of goods and services within each country and community.

CSM’s Global Procurement Services employees are increasingly able to make a significant contribution to our goals and measurable targets.  Together, with our customers we can achieve greater development and efficient resource usage by ensuring our suppliers and contractors achieve optimum social, environmental and ethical performance. For example, advancing sustainable and responsible procurement in the area of buying environmentally preferable products is key to the overall reduction of CO2, greenhouse gases and energy reductions across the supply chain life cycle of the goods or services.  Thus, every buying/evaluating decision should also consider the source and impact of consumables, equipment spares, servicing, maintenance, wastage, stock/non stock inventory, potential for reuse and recycling, operation and ultimate disposal during the total life cycle of the product.

Procurement Officers and users of goods & services must give adequate consideration for all inter-related elements of sustainable and responsible procurement, in addition to the usual corporate considerations such as value for money, low cost sourcing and continued expectation of low prices and supplier performance when making buying decisions.

Such a strategy includes, but is not limited to the following:

  • Energy (fuel and water) efficiency, consumption and cost effectiveness;
  • CO2/Greenhouse Gas emissions;
  • Reduced packaging or making provision for packaging reuse or return;
  • Use of recycled and/or re-manufactured materials;
  • Use of renewable energy resources;
  • Reducing usage, consumption and waste of toxic and hazardous substances;
  • Social aspects – Sustainable supply chains & the effects of issues such as labour conditions, including child labour provision, Occupational Health & Safety and compliance with relevant industrial and environmental regulations;
  • Value for money – Quality, fitness for purpose, whole-of-life costs, etc.

Led by Global Procurement Services, many initiatives also now play a key role in contributing to CSM’s overall responsible business practices development.  Additionally, both qualitative and quantitative targets for significant purchasing activities will ensure that success is measurable against future performance indicators and standards as established through a dedicated ‘Sustainable & Responsible Procurement’ Management Plan.

Current initiatives include:

  • Pre qualifying key, critical and long term suppliers, contractors and consultants for the supply of goods/services and construction-related works.  Pre qualification is a key element to reducing business risk and improving Corporate Social Responsibility;
  • Designing and implementing innovative Agreements to ensure that a suitable contractual and relationship framework is established with our suppliers;
  • Working with all CSM departments to set efficiency targets and maintain supplier standards;
  • Combating child labour through undertaking progressive screening of our critical and strategic suppliers to comply with anti-child labour policies and laws and ensure that our primary suppliers are child-labour free.  Simultaneously, we are continuing to look into ways to increase dialogue within the international maritime community regarding this issue;
  • Inspiring and encouraging our key suppliers to deliver total cost reductions/value through: community support; waste reduction and ‘cost down’ innovation.

Within our industry

Within our industry (and many others), regulations affecting our suppliers in the area of CSR will continue to evolve, in pace with the increasing trend of international and global industry standards. However, with regard to the varying degrees of compliance to many local, national and regional legislation, importantly it still apparent that CSM’s Procurement Officers are individually responsible to raise the bar on their own accord in setting the standards of suppliers.

As a result, CSM’s vessels as the end users of most products, are strongly encouraged to support our higher standards placed onto all aspects of supplier selection whilst understanding that every purchasing decision may adversely impact our organisation, employees and the industry in which we operate.

In the wider business context, there is a clear positive trend towards most major vendors accepting that it’s in their own long term best interests to accept and afford a firmer approach to CSR right now. However, there is no doubt that measuring the achievement of CSR goals within a procurement context is definitely a key challenge.  One way we will focus on doing this is through formulated specific CSR procurement “metrics” (eg: 100{aac067dded03ea8015063421521fd36e620649597e61fa599f02df44c263bf1a} of CSM’s ‘business critical’ vendors remain CSR compliant).

GPS continues to assess and enforce its global supplier standards and expectations to assure their operations, and those of their primary suppliers, are child-labour-free.  Human rights in the supply chain is seriously difficult area to control from a corporate environment and includes a range of complex issues, such as slavery, bonded labour, child labour, freedom of association, working conditions and wages, exploitation and non-discrimination.

For a completely risk-averse approach to this issue it must be adequately addressed relating to the standards of our suppliers of Goods/Services.  GPS is currently addressing via Procurement CSR/SRP Policy(s) stating CSM shall not conduct business with external organisations employing poor CSR (HR, labour, environmental etc) practices.

Furthermore, it’s planned for regular annual inspections of our major pre qualified vendors’ by CSM’s trained procurement professionals conducting routine risk and supply chain assessments.  This will provide the assurance our major vendors are complying in all areas which we accepted based on their pre-qualification criteria.  The inspections may include evidence of compliance to Child Labour/Bonded slavery/Employment conditions etc. and that other fundamental CSR principles are in practice.

To conclude

Our vessels is now striving to purchase from preferred suppliers which have a positive impact on the environment and human health, are ethically and socially responsible, and meet value-for-money considerations.  Our journey towards ‘Sustainable and Responsible’ Procurement seeks to influence and promote better buying decisions within CSM, as well as encouraging our key & strategic suppliers to become better corporate citizens. Far from incurring additional costs, there is a very strong financial incentive to embrace ‘Sustainable and Responsible Procurement’ which SAVES MONEY by improving resource efficiency and reducing supply chain risks.