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
41%
of procurement spend with local suppliers
5.5%
of our domestic spend with diverse suppliers
In 2023, 5.5% of our domestic spending went to diverse suppliers, putting us on track to achieve our 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 and is reviewing our current supply base to identify new certification opportunities.
In mid-December 2023, many of our current and prospective diverse suppliers gathered with Zurn Elkay accountability partners and senior leadership near our headquarters in Milwaukee, Wisconsin. Over a full day of presentations, workshops and breakout sessions, participants strengthened their relationships with us and each other. Supplier Diversity Day includes three key goals: Identify diverse suppliers that meet our 2024 plans; identify diverse suppliers that are not certified and pair them with appropriate certifying agencies; and work with current diverse suppliers to expand their reach within the company.