Responsible Sourcing

that the bidding processes are responsible, competitive, and mutually beneficial, both for the supplier/contractor and for the company, according to the following aspects:

  • Maximum cost efficiency by developing negotiations to obtain economies of scale advantages;
  • Negotiations within a framework that ensures compliance with the Code of Ethics, the Free Competition Manual, and CMPC’s corporate policies. The company operates and interacts with suppliers that contribute to compliance with its sustainability policies and objectives;
  • Defining an organizational structure to develop the management of the supply of goods and services of the respective subsidiaries, ensuring adequate control of risks and compliance with this policy, complementary rules, and procedures;
  • The purchasing, receiving, and payment processes related to managing the supply of goods and services must be carried out exclusively through the SAP corporate system.                                                                                                                                                                 
  • CMPC’s suppliers of goods and services must be periodically appraised for compliance with the quality specifications of the goods or services, delivery terms, risk management, and other obligations under the respective contracts or purchase orders.

This policy is based on ESG objectives, which in the case of wood supply, are embodied in encouraging suppliers to become certified by prioritizing their volumes compared to other volumes from non-certified suppliers—also building good relationships with local suppliers.

There are appraisals to each new supplier not yet registered, and on an annual basis, all those invoicing around US $ 1 B/year.

The significant risks measured in the supplier appraisal are as follows: 

  • Financial support; 
  • Sole proprietors with exclusive invoicing to the company;
  • On-the-job accidents;
  • Failure to pay pensions to its employees;
  • Applicable certifications;
  • Conflict of interest;
  • Global crimes (human trafficking, terrorism); 
  • Environmental issues. 

 

Supplier verification is based on the following items: financial analysis, fiscal regularity, mandatory records, and technical assessment. Suppliers with an overall score of less than 60% (bad or very bad) in two consecutive years or three opportunities in five years cannot be suppliers of CMPC.

For a detailed list of our suppliers of goods and services, please visit Social Field/People/Goods and Services Suppliers/