”In 2018, we continued our systematic work on sustainability throughout the company”
Get an insight from our CEO Jörgen Rosengren – what has been Bufab’s sustainability efforts over the past year?
In 2018, Bufab had another successful year. Most importantly, we achieved solid sales growth, to a large extent driven by increased market share in almost every single market. Many of our customers are getting more help from Bufab to reduce their complexity, their supplier bases, their risk and their total cost. They do this so they can get better control of their supply chain, also from a sustainability perspective.
That shows how central sustainability is to Bufab’s business model. Our customers are experts on their core business, and generally have good control of sustainability aspects when it comes to their A and B components. But when it comes to C-Parts, they have too many suppliers, too many parts, and too much complexity to manage it well. It is not their core business. That’s why they turn to a Supply Chain Partner like Bufab to manage C-Parts for them. For us, on the other hand, C-Parts are our core business. We are therefore able to secure the quality and logistics of C-Parts sourced from our supplier base, and can work with that supplier base over time to improve its sustainability.
In 2018, we continued our systematic work on sustainability throughout the company. In many areas, we made good progress. In others we need to speed up. An important step we took during the year was to select EcoVadis, a third-party assessment partner, to measure the year-to-year progress of our sustainability work, and to present the measurement externally in this report. This brings additional structure and discipline to our activities. As you can see, our scores are good, but not yet good enough. The ambition, over time, is to get to the “gold” level, meaning a performance exceeding 95% of industry peers.
Such an ambition requires systematic, long-term work across many areas. For example, this means a sourcing strategy that achieves favorable business terms without compromising our responsibility for the environmental and social sustainability. More generally, efficient logistics, ethically responsible relationships both within and outside the company, zero tolerance of corruption, respect for the central role of our employees, the view that everyone has equal value and the principle of freedom with responsibilities are cornerstones of our sustainability efforts. We base this on the ten principles of the UN Global Compact, of which we are a signatory since 2011. The work is structured into four focus areas:
• Long-term, systematic sustainability efforts
• Responsible growth
• Sustainable global business
• People and relationships
Our ambition is to be the leading player in our industry by 2020. That also means being the best supplier from a sustainability perspective. This is not an easy thing to do, since supplying C-Parts is a very demanding sustainability challenge. We have tens of thousands of customers and thousands of suppliers worldwide, and annually manage billions of components with more than 140,000 different specifications. So we do not say that we are perfect. Instead, we promise our customers and other stakeholders that sustainability is a top priority for Bufab. And we promise that with Bufab as their Supply Chain Partner, our customers’ C-Parts supply chain will get more sustainable every year.
Read our report; about our efforts in the year 2018, and also about our plans for becoming the sustainability leader in our industry.