Operating as a sustainably inspired company requires us to hold our suppliers to the same standards we apply to our operations in critical areas such as ethics, human rights, diversity and environmental stewardship. The importance of sustainability in the supply chain cannot be overstated, and we’re dedicated to ensuring that sustainable supply chain management is a foremost concern with every purchase.
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Our Supplier Excellence Manual includes information about several of our supply chain initiatives and requirements, including the Supplier Code of Conduct, Human Rights Statement, Supplier Quality and Development Program and Supplier Diversity. The Manual is intended to provide a clear understanding of our expectations, guidelines and processes. Adhering to these standards ensures seamless collaboration, enhanced operational efficiency and shared success in the competitive marketplace.
Our supplier screening program uses a systematic approach to onboard new suppliers and assess existing suppliers. It includes supplier self-declaration and validation through internal supplier audits of key environmental and social performance indicators. The assessment process is designed to identify and evaluate significant negative environmental or social impacts, including both actual and potential impacts. Key features include a new supplier screening, supplier risk audits, ESG and business continuity survey, and supplier affirmations of compliance with a series of regulations.
100%
of new suppliers were screened using environmental and social criteria
43%
of procurement spend with local suppliers
5.6%
of our domestic spend with diverse suppliers
In 2024, 5.6% of our domestic spending went to diverse suppliers with the overall goal of 8% diverse spending by 2025. We define diverse suppliers as those owned by women, racial and ethnic minorities, LGBTQ+ individuals, veterans and suppliers in historically underutilized urban and rural communities (HUBZones). To help us advance towards our target, our Supplier Diversity team works to develop relationships with key certifying agencies, identify new certified diverse suppliers for our business needs, and partner non-certified diverse suppliers with certifying agencies. In 2024, we initiated the Zurn Elkay Supplier Diversity Council and attended strategic networking events to increase our number of diverse suppliers.
Pallet Central Enterprises, Inc. (PCE) is one of the largest private pallet distributors in North America and is a nationally-certified woman owned business. They pride themselves with the principles of “Reduce, ReUse, and Recycle” in their business model. The keys to their reputation and success is a focus on quality, 24/7 customer service and supply chain solutions for functionality, efficiency and savings. PCE initially supported one of our 20+ sites. In 2024, they participated in multiple strategic sourcing events with Zurn Elkay and were awarded a national distribution contract. By the end of 2025, they will be supporting all of our business units.
In 2024, we assembled a subcommittee of subject matter experts across logistics, sourcing, category managers, and sustainability to define and evaluate green procurement within the supply chain organization. The team conducted internal interviews, peer benchmarking, and best practices research to develop a green procurement policy that will integrate environmental considerations in sourcing decisions. This policy is consistent with our environmental and social responsibility goals and will continue to be refined.