ITW is committed to working with suppliers who operate responsibly and share our dedication to global social and environmental standards. This includes conducting our own due diligence and fostering responsibility across our value chain to ensure we conduct business with a high degree of ethics and integrity while providing economic opportunities to diverse suppliers.
A Foundation of Accountability
Our Supplier Code of Conduct and Supplier Expectations serve as the foundation for ensuring that our supplier partners align with our ethical standards. More specifically, our Supplier Code of Conduct applies all relevant aspects of ITW’s Code of Conduct to our suppliers and is consistent with the United Nations Global Compact. Our purchase order Standard Terms and Conditions further reinforces our expectations.
Managing Our Supply Chain Efficiently and Responsibly
As part of our strategic sourcing effort, ITW employs several practices to ensure our supply chain is managed efficiently and responsibly.
Supplier Due Diligence: We rate and audit our suppliers to evaluate their long-term viability and ability to support our businesses sustainably going forward. The index we use to rate our suppliers measures a variety of factors, including safety and environmental measures, financial data, leadership stability and operational metrics. The audits provide visibility into supplier operations while supporting our responsible sourcing due diligence efforts.
In addition, we leverage several other third-party tools and resources to identify and mitigate risks within our supplier base. Our divisions own their supplier relationships and ensure each supplier meets ITW’s requirements prior to engaging in business.
Efficient Distribution and Storage: We leverage various planning tools to review our supply chain networks and identify the most efficient logistics routes, methods and warehousing strategies that meet or exceed customer expectations. This data-supported approach enables ITW businesses to optimize distribution and storage patterns, resulting in shortened freight routes, less packaging waste and reduced carbon emissions and environmental impact. Each year, ITW makes progress toward such sustainable improvements to our distribution activities.
Sustainable Materials: We focus our efforts on sourcing more environmentally friendly and sustainable materials for our products. Every year, we strive to increase the volume of recycled materials used in our operations where functionality allows.
Sourcing Our Minerals Responsibly
ITW is committed to being a leader in both policy and practice to ensure our supply chain utilizes tin, tantalum, tungsten and gold (commonly referred to as 3TG) from only certified conflict-free sources or those working toward certification. These actions are consistent with Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act and follow the international framework provided by the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. We apply a continuous improvement approach to our responsible sourcing processes and engagement with suppliers.
ITW actively engages in several industry consortiums, including the Responsible Minerals Initiative (RMI) and the Automotive Industry Action Group’s (AIAG) Responsible Materials Working Group (co-chair), providing critical thought leadership and research to help improve approaches in this area. ITW also participates in Drive Sustainability’s Drive+, a group of automotive tier-1 suppliers focused on accelerating sustainable supply chains in the automotive sector.
As reflected in our supplier policies, we are committed to taking proactive measures to respect the human rights of those in our supply chain. Further information can be found in our ITW Modern Slavery and Human Trafficking Statement.