Supplier Sustainability

We carefully select suppliers that share our commitment to operating more sustainably, and work throughout our supply chain to support continued improvement.

Approximately 96% of PPG's emissions are in the value chain, so we understand the criticality of working with supplier and customer partners. In 2023, we spent over $9.3B with more than 18,000 suppliers globally on raw materials, indirect goods and services and transportation of goods. We have prioritized work with a selection of key suppliers that represent the majority of our upstream scope 3 emissions.

We partner with suppliers to understand their current practices and innovate products and processes that use less energy, produce less waste and avoid negative health impacts on people throughout our value chain. By the end of 2023, we assessed 820 suppliers, representing 63% of spend, against sustainability and social responsibility criteria, including 97% of PPG's key suppliers.

Key suppliers assessed to sustainability and social responsibility criteria

Evaluating supplier practices

Our procurement team has continued to improve our approach to identifying opportunities for improvements in our supply chain. We take a risk-based approach to supply chain management and focus on the industries and geographies most likely to have issues. In 2023, we started using a new supplier monitoring tool to help us understand where environmental, social and governance risks are concentrated along our supply chain. This is the newest in a suite of tools and informational databases that we use to track our spending around the world and understand the ESG practices of PPG suppliers. This leading third party tool helps our procurement team review our entire supply chain's performance across the categories of environmental, labor and human rights, ethics and sustainable procurement practices.

As PPG has grown through acquisition, we have inherited new suppliers that need to be onboarded to our procurement processes. We continued to onboard suppliers into a leading third-party due diligence platform to evaluate suppliers' sustainability practices. In early 2023, we completed the process of integrating Tikkurila suppliers into our vendor management platform, marking the completion of one of our largest integration efforts to date. As of the end of 2023, 820 PPG suppliers have responded to surveys and received ratings from our third-party platform.

Recognizing responsible vendors

Every year, we recognize suppliers for responsible business practices that exceed our expectations with the Excellent Supplier Awards. There were eleven award recipients in 2023. Our procurement, business and functional teams evaluated and awarded suppliers for competitive advantage and value, as well as sustainability and supplier diversity.

Bringing sustainability expertise into our procurement team

As our focus on sustainable supply chain management continues to grow, we have added headcount within PPG to support our suppliers and help build capacity internally. In 2023, we created a new global ESG procurement manager position, responsible for collaborating with our global procurement team to engage and educate suppliers on defining lower carbon feedstocks and raw materials, setting expectations for supplier GHG emissions reductions aligned to our target, and tracking and monitoring supply chain due diligence activities.

For more information about how we approach supplier sustainability, see below.

Data highlights

Average EcoVadis score of suppliers

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Supplier sustainability audits by region

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