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We strongly encourage working with diverse suppliers and small businesses across our sourcing organization. |
Feature stories Who we are How we work What we create About report 168 3M 2021 Sustainability Report | #improvinglives |
3M proactively reaches out to various organizations, including the North Central Minority Supplier Development Council (NCMSDC), Women’s Business Development Center (WBDC), Metropolitan Economic Development Association (MEDA), Small Business Administration (SBA), Small and Disadvantaged Business Opportunities Council (SADBOC), and others. We also have a supplier portal that allows businesses to provide a portfolio of their capabilities, which is available to 3M’s sourcing organization. |
3M also establishes goals and regularly tracks the value of goods and services purchased from small businesses and diverse suppliers for the U.S. federal government as part of an annual Small Business Subcontracting Plan. |
To achieve our goals, 3M has implemented a strategy that aims to: • Increase year-over-year spending with Diverse Suppliers, Small Business, Minority Business/Small Disadvantaged Business • Expand support and sponsorship of advocacy groups and their members. |
In 2020, 3M spending with Small Businesses represented 21.6% and Diverse Suppliers reflected 3.31% of our total U.S. spend. Our progress is routinely communicated to leadership across the organization. |
For more information on our Supplier Diversity initiative, see Supplier Diversity. |
Our actions 3M works with a broad, complex supply chain, consisting of. |
In 2020, the SRC Steering Team provided refresher training for hundreds of internal supplier assessors and sourcing professionals globally to assure a detailed understanding of 3M’s SRC expectations, processes, and supporting tools. Employees received access to online training materials that covered each of the elements of the SRC, including labor and human rights, EHS, ethics, and management systems requirements. 3M’s business partners website also provided training materials for suppliers to expand their knowledge on topics such as global bribery and corruption awareness; eliminating forced labor, slavery, and human trafficking from the global supply chain; and preventing corruption and mitigating compliance risk for distributors and business partners. |
In 2020, 3M spending with Small Businesses represented 21.6% 3.31% of our total U.S. spend. |
and Diverse Suppliers reflected 113 countries around the world. |
over 72.3K suppliers in over 324 subcategories in. |
Science for Circular goal. |
Drive supply chain sustainability through targeted raw material traceability and supplier performance assurance by 2025 maintaining goal 2025 goal 2015. |
We understand that our sustainability impacts extend beyond our own operations. By purchasing raw materials and services from small and large companies all over the world, we participate in a global, complex supply chain. And it doesn’t stop there. Our suppliers have their own suppliers, extending back to the original source of each material we use. |
Feature stories Who we are How we work What we create About report 169 3M 2021 Sustainability Report | #improvinglives |
Supplier partnership during COVID-19. |
During the pandemic, 3M increased our global output of key products to support increased demand, which increased the demand on key raw material suppliers. |
Chemical producer BASF, for example, stated that “demand for BASF products that are key components of 3M products increased significantly. A global, cross-divisional BASF team pushed supply chains to their limits with BASF products being produced in the U.S., Germany, and Mexico in support of 3M. These tremendous efforts and 3M’s commitment to health care workers across the world will put critical products in the hands of those who need them for months and years to come.” |
In addition to supplier support, the 3M External Collaboration Resource Team (ECRT) received over 1,100 requests for collaboration, many of which were focused on the supply chain. Read more in COVID-19: A catalyst for unprecedented collaboration. |
Supplier spend by region. |
Percentage of global total. |
Responding to risks and transforming our supply chains. |
We are constantly managing changes in supply markets, both where there is an opportunity to achieve value and where necessary to mitigate risk and secure supply. 2020 brought many challenges. It took a huge effort to make sure essential supplies were provided to 3M to support production of critical products used to help fight COVID-19. Unfortunately, the pandemic also increases the risk of modern slavery practices among vulnerable workers across supply chains. The global responsible sourcing team took additional actions in 2020 to determine if 3M was at risk and will continue these efforts in 2021 by focusing on our assessment and training programs to assure ethical production and responsible trade. |
As described earlier, we focus our efforts on salient issues in categories where human rights and environmental risks are the greatest. More broadly, we conduct robust risk prioritization to determine the suppliers we will engage using our SRC assessment process, which includes policy and contract conformance. |
10 20 30 40 50 60 0 2018 2017 2019 2020 2016. |
Asia Pacific. |
Europe, Middle East, Africa. |
Latin America. |
United States, Canada. |
Supplier locations. |
Feature stories Who we are How we work What we create About report 170 3M 2021 Sustainability Report | #improvinglives |
3M uses industry indices to identify higher-risk supply chains in conjunction with Lean Six Sigma (LSS) tools to optimize and strengthen our risk management processes. The criteria matrix helps rank global suppliers using multiple factors such as geographic, category, and business-critical elements to determine where assessments should be performed each year. |
Beyond risk, we aim to utilize our supply chains in our overarching goals for sustainability. 3M recognizes that many of the world’s greatest challenges can be solved through collaboration. We are currently exploring supply chain integration opportunities with some of our key suppliers in an effort to advance circularity. In 2020, we asked suppliers to partner with us to populate our Supplier Sustainability Solutions Library, which is available to 3M product developers to help accelerate solutions that support 3M’s Sustainability Value Commitment, ensuring all new products have a sustainability attribute that will improve our product offerings and advance our aspirational Sustainability Goals. See the Circular materials and Innovation management sections for more information. |
Verifying our supplier performance. |
Although applicable to all suppliers, our supply chain risk assessment process prioritizes higher-risk suppliers, each of whom must complete an SAQ and/or be subject to an on-site assessment as specified in our SRC. In 2020, we assessed about 18% of our higher-risk suppliers. |
In the past 12 years, we have conducted almost 7,400 self-assessments or on-site audits of suppliers in prioritized countries. Our assessment process, which is aligned with the RBA framework, has become more involved and comprehensive. In 2020, 3M completed over 468 assessments in 35 countries, which covered every area of the world. |
3M worked with suppliers to enhance our third-party audit process, with a goal of expanding third-party assessment activity. 3M aligned with the RBA Validated Assessment Program (VAP) as the industry platform to provide synergy with our Supplier Responsibility Code assessment process. |
Forced labor and human trafficking 3M’s efforts to eradicate forced labor and human trafficking from our direct supply chains are discussed in more detail in our Transparency in Supply Chains and Modern Slavery Disclosures. Within these disclosures, 3M’s Modern Slavery Statement communicates our commitment to legal and ethical practices as exhibited by our membership in the United Nations Global Compact, 3M’s Code of Conduct, and cooperative efforts working with others to abolish human rights atrocities, especially in regard to human trafficking, forced labor, modern slavery, and other related crimes. |
Cumulative supplier assessments, since 2008. |
Total number. |
In 2018, we updated our assessment progress and increased the scope of each assessment. |
3M is committed to doing our part to eradicate human trafficking in any form from the global supply chain. We have robust policies and systems in place to control these practices in our own operations and with our suppliers. 3M sets a high bar for our company regarding labor and employment, and we expect the same from our suppliers as articulated in the SRC. |
Many of the world’s greatest challenges can be solved through collaboration. |
2,000 5,000 7,000 6,000 8,000 1,000 3,000 4,000 2018 2017 2019 2020 2016 0. |
Feature stories Who we are How we work What we create About report 171 3M 2021 Sustainability Report | #improvinglives |
Responsible minerals actions 3M’s Responsible Minerals Sourcing program, now in its eighth year, has gone through continuous improvements based on insights from past campaigns as well as external benchmarking that provided ways to optimize and increase the effectiveness of program activities. |
3M’s membership in RMI provides insights into emerging risks and assessments in raw materials supply chains. RMI uses the Risk Readiness Assessment (RRA) tool to provide these insights, which is the basis for corporate assessments of material risks in 3TG supply chains, specifically related to social and environmental risks. |
With the evolution of responsible minerals programs, 3M worked with a third party to manage our 2020 program outreach and data collection. The third-party platform automates the collection, validation, and centralization of data to support 3M’s Responsible Minerals Sourcing program. Suppliers entering the portal are linked to training resources with access to topics and webinars such as An Introduction to Supply Chain Data Management, Responsible Minerals: Guidance on Artisanal & Small-Scale Mining, Resources & Best Practices for Effective Responsible Minerals Reporting, and Understanding Your Requirements Under the EU Conflict Minerals Regulation. |
Additional information can be found in the 3M Conflict Minerals Securities and Exchange Commission filings found on 3M Supplier Direct, Supplier Requirements, Responsible Minerals. |
Beyond 3TG (tin, tantalum, tungsten, and gold), 3M’s Responsible Minerals Sourcing program includes cobalt sourcing in order to support industry expectations, 3M values, and human rights policies. 3M expects our suppliers to adopt a similar policy and due-diligence management system, and we require the same of their suppliers in order to proliferate responsible sourcing practices throughout the supply chain. |
In addition, 3M is an active member of the Responsible Minerals Initiative (RMI), which develops tools and provides guidance for companies regarding conflict minerals. Our membership in RMI and various working groups, such as the Due Diligence Practice Team and RMI Plenary Team, enable 3M to be involved in activities supporting RMI’s Code of Conduct and due-diligence practices. The teams provide useful venues for 3M to offer ideas and learn from other member companies as we all work together on this important journey of transforming our supply chains. In September 2020, 3M attended the annual RMI member meeting and, in October 2020, attended the virtual RMI Annual Conference to discuss strategies and best practices regarding the expansion of a market-driven, responsible sourcing supply chain. |
Conflict mineral supply chain traceability 2020 percentage based on RMI audit status. |
RMAP conformant 71.9% |
RMAP active 6.65% |
RMAP not enrolled 19.0% |
Non-conformant 2.42% |
Conflict mineral supply chain traceability 2020 percentage based on RMI audit status. |
Based on Responsible Minerals Assurance Process (RMAP) |
Feature stories Who we are How we work What we create About report 172 3M 2021 Sustainability Report | #improvinglives |
Pulp and paper policy implementation on the ground. |
Throughout our policy implementation, we have seen several examples of marked improvements in responsible pulp and paper sourcing practices as a result of our engagement with suppliers. These include: • Meeting with suppliers’ senior corporate executives about the importance of assuring responsible and sustainable supply chains, and agreeing to collaborate on that goal • Suppliers establishing new pulp and paper positions within their companies • Significant increases in supply chain traceability and transparency • Increased engagement by our suppliers with their upstream supply chain • Suppliers adopting new or enhancing existing pulp and paper policies • Suppliers inviting 3M to collaborate on challenges around responsible sourcing and to create a path forward. |
We continue to work with all in-scope 3M suppliers around the world to map our global pulp and paper supply chain from paper and pulp mills down to the forest source. We aim to work with suppliers and peer companies to amplify our efforts to mitigate risks, improve efficiencies, and drive sustainable practices throughout the supply chain. |
We work with a third-party provider, Earthworm Foundation (EF), to help us review the information we obtain from our supplier surveys and combine that with geography and industry-specific knowledge to conduct desktop risk assessments of our supply chains. We use these assessments to prioritize further engagement and to learn more about our suppliers’ responsible sourcing and sustainable forestry practices. Some of the ways we engage further across all tiers of the supply chain may include conducting web conferences, in-person meetings, or field assessments at the mill and/or forest level. |
With the help of EF, we have so far conducted 15 field assessments across all regions, covering more than 19 million hectares. We do not limit this engagement to our direct suppliers. Some of those assessments reviewed Tier 2 pulp mills and were also attended by a Tier 1 supplier. 3M’s participation in supplier field assessments with EF helps us to understand first hand the challenges faced by pulp and paper companies and forest managers around the world. This, in turn, enables us to participate actively in developing solutions and advancing conversations about responsible sourcing and sustainable forestry. |
Each assessment resulted in a comprehensive report detailing the supplier’s performance compared to our policy requirements and provided action items to address any performance gaps. We expect each supplier to develop corrective action plans with reasonable timelines and, concurrently, continue to collaborate with 3M on the resolution of identified opportunities. |
While we will continue to conduct field assessments in our supply chain where warranted by risk or where we identify that it is important to get on the ground to better understand the risk and current mitigation efforts, we are shifting our overall focus to more direct collaborations with suppliers and other third parties. To date, we have participated in transformation projects covering over 5 million hectares. |
Traceable to forest source or 100% recycled 78.8% |
Traceable to pulp mill 5.63% |
Traceable to paper mill 4.60% |
Not yet engaged or traceable 11.0% |
Pulp and paper supply chain traceability 2020 percentage by spend. |
We have so far conducted 15 field assessments across all regions, covering more than 19 million hectares. |
Feature stories Who we are How we work What we create About report 173 3M 2021 Sustainability Report | #improvinglives |
Although 2020 presented challenges due to COVID-19, we adjusted our implementation strategy to adapt to these challenges. Where we planned to conduct on-the-ground and in-person activities, we shifted to remote and digital engagements, when applicable. Although some types of engagement are still best conducted in person, we were able to make solid progress in implementing our policy this year by working with strong, collaborative suppliers and other third parties. |
More information on these assessments and other collaborative efforts can be found in our Pulp and Paper Sourcing Policy Progress Reports, including: • Training in Brazil. In 2020, 3M’s support enabled EF to provide a training series on Free, Prior, and Informed Consent (FPIC) processes, reaching over 50 people from major companies and stakeholder groups in the Brazilian forestry sector. The companies represented at the training account for 3.1 million hectares of forest plantations within a total land holding of 5.7 million hectares in Brazil, or 40% of plantation forest management in the country. |
• The Great Northern Forest. 3M and EF are committed to working with suppliers to promote the protection of high conservation values in the Great Northern Forest (the northernmost forest in the world) and the ability of the forests to provide wildlife habitat, ecosystem services, and natural beauty for generations to come. |
For more information, see our feature story Healthy forests. |
Working on overall policy conformance for suppliers. |
In 2016, 3M and EF created a Policy Conformance Self-Assessment Tool with the purpose of having 3M suppliers assess themselves against all aspects of the 3M Pulp and Paper Sourcing Policy. Since the creation of this tool, we have been partnering with our suppliers to complete this self-assessment. In addition to the self-assessment, we have created and implemented a Pulp and Paper Sourcing Policy Scorecard, which allows 3M to evaluate a supplier against all aspects of the 3M policy. We began rolling out this scorecard with prioritized suppliers in 2019, completing evaluations of suppliers in each region. |
The results of the evaluation provide 3M further insight into each supplier’s conformance status while also highlighting opportunities and areas to focus on for improvement. The goal is that the evaluation results create a path to work together to further advance the sustainability of the global pulp and paper supply chain. |
Through this work and engagement with our suppliers, we have seen many suppliers make significant progress in their own programs, ranging from enhancing their own policy(s) and due-diligence management systems to creating policies that did not previously exist. |
Collaboration for change 3M Brazil is a signatory to the National Pact to Eradicate Slave Labor and joined InPACTO — the National Pact Institute for the Eradication of Slave Labor — a trade association focused exclusively on collaborative efforts among members, including 3M, and committed to the goals of the National Pact. |
Supplier recognition. |
Our supplier recognition program seeks to recognize those outstanding suppliers that help us succeed in accomplishing our Vision — 3M Technology Advancing Every Company, 3M Products Enhancing Every Home, and 3M Innovation Improving Every Life. |
Each year, 3M sourcing professionals nominate exemplary suppliers to be recognized for world-class performance based on strategic support, contract compliance, actions taken to improve 3M’s competitiveness, and overall supplier performance. In 2020, 3M recognized the top 40 suppliers out of thousands of suppliers in the 3M supply chain. Due to the unprecedented demands needed to support 3M’s critical COVID-related supply efforts, a special award category was added to recognize this unique class of suppliers. |
Learn more about the Supplier of the Year Award. |
Pulp and paper field assessments and transformation projects. |
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