Our Procurement Model aims to build stronger relationships across our suppliers’ network, as we acquire quality goods and services that our company needs to succeed.
Procurement constantly works to engage and align our suppliers with our core values, ensuring that our suppliers are in compliance with our Code of Ethics, and our Code of Conduct When Doing Business with Us.
When managing and selecting our business partners, we offer equal opportunities to bid on and win contracts, following strict competitive pricing, quality, experience, and service criteria while adhering to sustainable practices.
Since 2010, we have been rolling out CEMEX Supplier Sustainability Program, an effort that extends our commitment to sustainable practices and policies to our business partners through an evaluation executed by specialized independent firms, including relevant aspects such as Health & Safety, Community Relations, Human Rights, Employee Development and Diversity, and Environmental Compliance, among others.
We have made progress toward our 2020 goal, and considering feed-back from our stakeholders we have decided to strategically align our efforts and adjust the focus to critical suppliers as the priority target group for evaluation. As a result, our new 2030 objective will transpose our former goal beyond volume to a way in which our resources are more dedicated to managing suppliers’ impact and risk.
Link to priority Sustainability Development Goals (SDGs)
We closely cooperate with our supply chain to foster our continuous innovation and implement the most sustainable techniques in our day-to-day operations.
Consequently, we look to create a culture of communication that reflects the best relationship with our suppliers, while working towards our company’s objectives.
These efforts support the five Sustainability Development Goals (SDGs), identified as priority for CEMEX.
Supplier Relations + Fair Dealing
CEMEX’s success is supported by the supplier relationships that are built on trust and mutual benefit. We will always manage our supplier relationships with honesty, respect, and integrity, offering equal opportunities to all concerned parties.
As a member of the GCCA (World Cement and Concrete Association), CEMEX adopts its principles in our Code of Conduct When Doing Business with Us. CEMEX encourage all suppliers to adhere to the standards of its Code, therefore, strongly advises its suppliers not to perform or engage in any act prohibited by law or by its Code.
1. Occupational health and safety, and security
Occupational health and safety: Suppliers shall provide a safe and healthy workplace for their employees and contractors. Suppliers must be compliant with local and national laws and regulations on occupational health and safety and have the required permits, licenses and permissions granted by local and national authorities. Suppliers must have documented health and safety policies and/or procedures in place together with appropriate safety infrastructure and equipment. Suppliers identified as being moderate to high risk for occupational health and safety violations shall take action and bring proof of continuous improvement towards implementing and applying a recognized occupational health and safety management system. When on company sites, suppliers must fully comply with applicable GCCA companies’ policies and directives.
Security: Suppliers shall ensure that all necessary security arrangements are in place to protect their workers as well as the suppliers’ own assets. In particular, suppliers are expected to have an actionable crisis management policy in place aimed at responding to emergencies in a timely and efficient manner.
2. Working conditions
Suppliers shall uphold fair and decent working conditions. Workers shall be paid at least the minimum wage stipulated by national law and benefit from social security schemes according to national legal standards. Should there be no legal minimum wage in the country of operation, fair and decent conditions imply suppliers shall pay their workers taking into consideration the general level of wages in the country, the cost of living, social security benefits, and the relative living standards.
3. Freedom of association and non-retaliation
Suppliers shall not interfere with workers’ freedom of association. Workers’ representatives shall not be subject to discrimination or termination of contract in retaliation for exercising employee rights, submitting grievances, participating in union activities, or reporting suspected legal violations.
4. Forced labour
Suppliers shall not use any work that is performed under threat of penalty, including forced overtime, human trafficking, debt bondage, forced prison labour, slavery or servitude. Suppliers shall not withhold migrant workers’ identification documents.
5. Child labour
Suppliers shall not employ children at an age where education is still compulsory. Children and young people under the age of 18 or below the legal minimum age, if higher, shall never be employed.
Employment-related decisions shall be based on relevant and objective criteria. Suppliers shall make no distinction on grounds including, but not limited to, age, disability, gender, sexual orientation, political or other opinion, ethnic or social origin, or religion. Employment-related decisions include, but are not limited other opinion, ethnic or social origin, or religion. Employment-related decisions include, but are not limited to, hiring, promotion, lay-off and relocation of workers, training and skills development, health and safety, or any policy related to working conditions such as working hours and remuneration.
7. Environmental regulatory compliance
Suppliers shall respect and comply with environmental regulatory requirements at all levels (local, national and international). In all their activities, they shall be covered by required environmental permits and licenses, and support a precautionary approach to environmental challenges.
8. Management of environmental impacts
Suppliers shall systematically manage their environmental impacts with respect to, but not limited to, energy, materials and climate change-related issues, water, waste, chemicals, air pollution and biodiversity, and set objectives and targets to reduce such impacts. Suppliers identified as having a high environmental impact shall take action and demonstrate proof of continuous improvement towards implementing and applying a recognized environmental management system.
9. Bribery and corruption – anti-money laundering
Suppliers shall comply with all applicable anti-corruption laws and regulations and, to this effect, have a zero tolerance policy towards any form of bribery, corruption, extortion and embezzlement. In particular, suppliers shall not pay bribes or make any other inducement (including kickbacks, facilitation payments, excessive gifts and hospitality, grants or donations) in relation to their business dealings with customers and public officials. Suppliers are expected to perform all business dealings transparently and these dealings shall be accurately reflected on their business books and records. Where required based on a reasonable risk assessment, suppliers are expected to perform the know-your-customer checks required under applicable anti-money laundering legislation. Suppliers shall not hire third parties to do something they are not allowed to do themselves.
10. Transparency and Integrity
Suppliers are expected to provide relevant information and documentation on the above issues upon request, safeguarding integrity as well as a relationship of mutual trust. While this does not include any commercially sensitive information, all information that suppliers may provide to demonstrate commitment to the sustainable supply chain principles will be treated discretely and with confidentiality, with the aim of enhancing opportunities for further improvements on all fronts.
11. Maintain standard business practices related to gifts, services, and other courtesies
Gifts, services, and other courtesies from our current or potential CEMEX suppliers are acceptable only if they are given for legitimate business reasons. In all cases, such courtesies must be lawful and in line with standard business practices.
(For more detail, please see Appendix 1)
12. Seek for equality and fairness in supplier relations
CEMEX provides suppliers with equal opportunities to bid on and win contracts. CEMEX always conduct its procurement processes consistently, respectfully, and confidentially. In all cases, CEMEX bases the evaluation of bids for the selection of suppliers on the company’s established criteria.
Safety is our priority
At CEMEX, we are committed to the health and safety of our employees, suppliers, and partners as a top priority. For us, zero injuries and zero fatalities are more than a goal; they are a moral mandate.
As part of our Contractor Health & Safety Certification Program, a third-party company validates that contractors who come into our facilities have valid credentials to perform their jobs. Certification requires liability policies, risk premiums, security manuals, and accreditations, among other requirements. Valid for one year, this renewable certification aims to ensure that our contractors know and are fully committed to our safety procedures, keeping safe while working with us.
The CEMEX Supplier Sustainability Program extends our commitment to sustainable practices and policies to our business partners through an evaluation executed by specialized independent firms, including criteria such as Health & Safety, Community Relations, Human Rights, Employee Development and Diversity, and Environmental Compliance, among others. For the past decade, our Supplier Sustainability Program has made an extensive commitment to sustainability across our value chain, communicating and promoting responsible practices.
Sustainability 2030 Goal
We constantly learn from our suppliers and partners, gaining knowledge and experience from their sustainability practices. We’ve made improvements to our Supplier Sustainability Program based on these relevant insights, and, with this in mind, we have also defined new 2030 goals for this program.
We have decided to strategically align our efforts and adjust our focus on critical suppliers* as the priority target group for evaluation. As a result, our new 2030 objective will shift our former goal beyond volume to dedicating more of our resources to managing suppliers’ impact and/or risk.
*Critical suppliers are those business partners who can have a significant impact on our three core businesses of cement, ready-mix concrete, and aggregates, specifically suppliers who could affect the continuity of our operations, involve environmental risks, and/or contribute the highest spend.