Supplier Risk Program

Solenis’ suppliers risk management program is a comprehensive framework for identifying, assessing, and mitigating risks associated with our suppliers. This program recognizes the critical role our suppliers play in the success of our company and seeks to develop strategies to minimize potential disruptions and safeguard our business continuity. By proactively managing supplier risks, we are able to be more resilient, enabling exceptional service to existing or new customers  ,reducing the risk of financial losses, maintaining our good reputation, and achieve our sustainable commitments through partnerships within our value chain.

This process is carried out throughout supplier selection, onboarding, and ongoing supplier relationship management.

Solenis’ Supplier risk assessment process is comprised of five elements as represented below.

We’ve partnered with leading technology providers to enable continuous screening of suppliers. Leveraging AI, we’ve expanded our supplier coverage and broadened the scope of risk domains assessed—including:

• Cybersecurity vulnerabilities
• ESG factors
• Financial health
• Geopolitical risks
• Catastrophic events
• Regulatory restrictions

Our evaluations also consider country-specific risks, sector-specific risks, and supplier relationship strategy.  

Country-Specific Risk Classification: we assess country-level exposure to human rights, labor, and supply chain risks using multiple international standards, guidelines, and legislations. Our approach incorporates recognized frameworks, including:

• OECD Guidance on Conflict-Affected and High-Risk Areas
• Swedish National Agency for Public Procurement’s Hållbar Upphandling risk assessment tools
• UK Foreign, Commonwealth & Development Office Human Rights Priority Countries List
• Global Rights Index by the International Trade Union Confederation (ITUC)

Sector-Specific Risk Classification: we conduct comparative analyses of industry-specific risks informed by leading international standards , guidance and  legislations, such as:

• OECD Guidance on Conflict-Affected and High-Risk Areas
• Hållbar Upphandling Risk Assessment
• UK Foreign, Commonwealth & Development Office Priority Sector List
• ILO Standards

German Act on Corporate Due Diligence Obligations in Supply Chain Acts (LkSG)

Suppliers in Scope

Since FY24, Solenis has continuously expanded its suppliers risk program scope. Diversey and Solenis suppliers are now combined which has significantly increased the number of suppliers enrolled in the program. We prioritize suppliers enrollment based on  spend, location, industry or business relevance as defined per our Supplier Relationship Program.

Some of our FY25 program numbers are listed below:

After the initial screening, we perform in-depth risk assessments for all business-critical Tier 1 suppliers and selected non-Tier 1 suppliers, as defined by our Supplier Relationship Program. These suppliers undergo evaluation through our Supplier Risk Management Program, which gathers and analyzes key data on regulatory compliance and ESG performance using questionnaires and verified public sources.

Our Sustainable Procurement and Category Management teams review this data to define mitigation actions to mitigate residual risks identified.

Below our FY25 achievements of our risk diligences and mitigations:

Any potential risk of human rights violations within Solenis’ supply chain, identified through our Supplier risk assessment process will prompt a deep dive investigation. For Supplier(s) that are identified with a potential risk of Human Rights violation, a secondary level of due diligence will be conducted using a dedicated software solution named Kharon. This extra assessment enables Solenis to confirm any potential risk of human rights violations within Solenis’ supply chain and prompt a mitigation plan if necessary.

Risk Program for Sustainability

Sustainability is a key aspect of Solenis Supplier Risk program. We have strong ambitions and we defined targets that will ensure Solenis a resilient and sustainable value chain as reported below*: 

Target by 2030