Sustainability

IRPC Sustainability

Supply Chain Management

IRPC emphasizes on supply chain management that covers environmental, social, and governance (ESG) aspects in order to ensure quality, quantity, and delivery of products and services. In 2014, IRPC has developed IRPC Sustainable Procurement Management Manual and IRPC Supplier Sustainable Code of Conduct, covering business ethics, human rights, environment, and health and safety aspects. Suppliers and employees are expected to comply with the Code of Conduct and other practices under related law and regulations.

Supplier Risk Assessment

IRPC group conducts supplier risk assessment while taking into account environmental, social, and governance impact based on the importance of suppliers using 4-step analysis as followed

1. Spend Analysis
Spend analysis covers all types of procurement activities, spending of every supplier, and top spenders.

2. ESG Risk Assessment
ESG Risk Assessment focuses on identifying sustainability risks in the procurement process, for example, child and forced labor, purchase of chemical that contains prohibited substances, etc.

Definition of Sustainability High-Risk

3. Supplier Criticality Analysis using following criteria
  • HIGH EXPENDITURE
  • COVERED CRITICAL PARTS/COMPONENTS
  • NON-SUBSTITUTABLE
  • STREATEGIC RELATIONSHIP
4. Risk Mitigation Measure
Conducting Supplier Risk Mitigation Measures based on result of risk assessment and supplier criticality analysis to equip IRPC with readiness to deal with high risk and critical suppliers.


IRPC Performance - supplier management

In 2016, IRPC procurement spent is classified into 2 major categories:

1) Feedstock of petroleum and petrochemical business: responsible for tracking spending on all type of refinery and petrochemical feedstock and;

2) General Procurement (chemical and components): planning and tracking the spending on chemicals, spare parts, etc. Currently, there are 2 departments separately responsible for monitoring their own spending. IRPC used spend analysis for analyzing expenditure data with the purpose to reducing procurement cost, improving efficiency, and monitoring compliance.

Results of spend analysis are summarized as follow:

For more information on supply chain management, please see the documents: