Supply Chain - Environment

Supplier policy on energy use and climate change

Energy and Greenhouse Gases. DS Smith is working to reduce its greenhouse gas emissions from a holistic perspective, i.e. from the extraction of resources, through production, transportation, use, and end of product life. 

DS Smith expects all suppliers to actively work to reduce emissions, both in terms of energy for manufacturing, transportation, and the source of material, and to work with DS Smith to improve its own energy efficiency. 

Suppliers must have an energy efficiency program that includes activities and goals for improving energy efficiency.

Pulp and Paper production and Fibre Based Materials 

The environmental impact of pulp, paper and fibre based materials production, i.e. emissions to air (greenhouse gases (GHG), sulphur and nitrogen oxides) and effluents to water (chemical oxygen demand (COD)/total organic carbon (TOC) and/or biological oxygen demand (BOD), absorbable organic halides (AOX) and phosphorus), contributes to the measurement of suppliers' environmental performance. Levels at the European IPPC (2008/1/EC)/BAT[1] standard are preferred 

[1] Integrated Pollution Prevention and Control/Best Available Technique 

DS Smith prefers that its suppliers increase the proportion of renewable [1] energy they use and work with alternative materials that are more environmentally sound. 

DS Smith promotes transport modes with low emissions per ton-kilometre and optimizing of the freight and transport between supplier and DS Smith. 

[1] According to EU-directive 2001/77/EC: wind, solar, geothermal, wave, tidal, hydropower, biomass, landfill gas, sewage treatment plant gas and biogases 

[1] Integrated Pollution Prevention and Control/Best Available Technique 

Waste and Resource use

DS Smith requires its paper and pulp suppliers to use timber and fresh fibre based on materials that originates only from known non-controversial sources. Timber and fresh fibre based materials from the following types of sources is not accepted: 

  • Illegally logged timber 
  • Timber from areas where human rights or the traditional rights of indigenous peoples are being violated 
  • Timber from high conservation value forests 

Paper, pulp and fresh fibre based material suppliers must have reliable systems and documented procedures in place which enable adequate control of the supply chain and traceability of the origin of wood and fresh fibre based raw materials. This should ultimately be verified by independent certification (Chain of Custody). 

DS Smith expects its suppliers to ensure that the forests from which they are supplying the wood fibre are well managed and, ultimately, are independently certified.

The proportion of timber and fresh fibre based materials originating from certified forests should be continually reviewed and suppliers are requested to show plans for their forest certification and chain of custody efforts. 

FSC®, PEFC, SFI, and CSA[1] are certification schemes recognised by DS Smith. 

Other certification schemes may be considered on a case-by-case basis. 

[1] Forest Stewardship Council, Programme for the Endorsement of Forest Certification Schemes, Sustainable Forestry Initiative, Canadian Standards Association 

Supplier Questionnaires

Suppliers are expected to answer questions on such topics as: 

  • emissions to air, effluents to water, and solid waste

Communication and training

Environmental Questionnaires: DS Smith continually assesses the environmental performance of its suppliers either through self-audits and assessments or ad-hoc audits when necessary. As part of that, and as input for Life Cycle Assessments and/or environmental labelling, updates and surveys might be necessary 

Suppliers are expected to answer questions on such topics as: 

  • use of energy (electricity and fuels) 
  • raw material and finished material 
  • emissions to air, effluents to water, and solid waste 
  • fibre raw materials and pulp production 

DS Smith prefers that suppliers also include environmental information from their sub-suppliers. 

If the supplier prefers, a confidentiality agreement can be signed to restrict the use of the information to a level where only the supplier's environmental status is assessed. 

Risk Assessment regarding environmental issues for potential new and existing suppliers 

In 2014 our Sustainability Committee demanded greater transparency in our paper supply chain, their fibre sourcing, CO2 emissions and environmental standards. Responsible fibre sourcing is one of our material issues. We created an online customer questionnaire and through our central paper sourcing team, we explored a complex supply chain involving 37 distinct paper manufacturers and more than 75 mills. However, whilst all the paper manufacturers we approached registered, only one third responded with fully auditable data.

Consequently, we will increase our efforts to improve their response rate over the next year, in order to ensure that we continue to provide our customers with products that we know are sourced from sustainable forests, legally harvested, or - best of all ‒ made from recovered materials that we ourselves have helped to recycle.

A copy of the risk assessment format is available to specified supplier and should be requested from your contact in Group Procurement.

Environmental Management System

Suppliers should be able to demonstrate their commitment and ability to support this initiative. A documented Environmental Management System (EMS) must be implemented. 

As a minimum, the EMS should include: 

  • An Environmental and/or Sustainability Policy 
  • A documented investigation of the supplier's current environmental impact, including analyses and prioritisations. This to be used as a base for planning of actions to reduce the impact 
  • Compliance with all legal requirements 
  • Defined and documented responsibilities, and available resources 
  • Setting of goals and actions for continual improvement 
  • Regular management review of the EMS and its effectiveness 

The preferred level is a current ISO14001 certification.