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Supplier Monitoring and Audit

     

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Grace is committed to sustainable and responsible procurement. Grace routinely audits its supplier base on an ongoing basis.  Grace uses a management of change system to control and validate all raw material changes, critical supplier qualification procedure for high risk raw materials, and a prequalification procedure for suppliers, contractors, and vendors.  Our audit and qualification protocols include an evaluation of sustainability issues as they pertain to environment, human rights, health, safety, and security.

Grace has partnered with EcoVadis to conduct audits of our suppliers' Environment, Labor, Human Rights, and Procurement performance and practices.  Grace expects its suppliers to adhere to our commitment to human rights and does not work with suppliers that use indentured, slave, bonded, or other forced involuntary labor and rejects corporal punishment of any kind.  Grace verifies the observance of the code principles by our suppliers through online assessments, conducted by EcoVadis, an external provider of sustainability evaluations, or on-site audits.  Hazardous and dangerous goods are subject to screening and control according to our policy on EHS critical supplier qualification procedure.  Suppliers are selected for these evaluations according to their strategic importance and a sustainability risk analysis combining country and category risks.  Currently 100 percent of our suppliers where Grace spends in excess of one million US Dollars per year, representing over 80 percent of spend, have signed Grace's Supplier Code of Conduct covering ESG and all regulatory requirement and adopted practices that are consistent with the policy.


​Direct Material Suppliers
Indirect Material Suppliers​
​2017
​25%
​Not Recorded
​2018
​56%
Not Recorded​
​2019
​100%
100%​


Grace continually monitors and evaluates our suppliers' performance.  Suppliers identified as critical to our operations undergo routine audits.

Grace has performed reasonable country of origin inquiries ("RCOI") for manufactured equipment containing electrical components from appropriate suppliers and contract manufacturers.  Due diligence procedures conform to the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk areas.