Human rights in the supply chain

Corbion’s business strategy and decision-making processes incorporate impacts on upstream value chain workers, with a focus on agricultural supply chain workers, including smallholder farmers and mill workers. This is achieved through the implementation of a human rights due diligence process and responsible sourcing program, which integrate supplier policies, risk assessments, questionnaires, stakeholder engagement, certification, and audits to address impacts on value chain workers involved in the production of raw materials. Smallholder farmers are part of our Tier 2 supply chain, and we work with our Tier 1 suppliers to address potential impacts on them.

Corbion is dedicated to collaborating with stakeholders, industry leaders, and policy leaders on issues affecting workers in our supply chain. Our efforts in this area include aligning our commitments to the United Nations Global Compact and our membership of relevant multistakeholder initiatives, including Bonsucro, a global non-profit setting sustainability standards for sugarcane production, the Roundtable on Sustainable Palm Oil (RSPO) and the North American Sustainable Palm Network (NASPON). In 2023, we participated in the United Nations Global Compact Accelerator Program on Business and Human Rights, and in 2024 joined a related learning group with industry peers to exchange best practices on managing human rights in our own operations and supply chain.

How we manage our impact: strategy and governance

Impacts, risks, and opportunities

Corbion’s business model depends primarily on carbohydrates, which are used as feedstock in our fermentation processes. To a lesser extent, our business depends on wheat, soy bean oil, and palm oil. The divestment of our Emulsifiers business significantly decreased our dependence on soy and palm oil.

Through our DMA and due diligence process, we have identified that smallholder famers harvesting sugarcane and oil palms are more likely to be negatively impacted in Corbion’s supply chain, with a potentially higher negative impact on migrant workers and women.

High-risk sourcing geographies of these products include Thailand and Brazil for cane sugar (part of our Tier 1 supply chain), as well as Indonesia and Malaysia for palm oil (part of our Tier-N supply chain). Risks arise from a higher prevalence of poor working conditions, forced labor, and child labor in these countries’ agricultural practices, and from limited visibility of how smallholder farmers, who operate under structural constraints such as suboptimal access to resources, technology, and markets, are impacted by socioeconomic conditions.

Policies

For information on Corbion’s Human Rights Policy, see Human rights (new window).

Supplier Code

Our Supplier Code defines Corbion’s expectations for all suppliers and their contractors. Its objective is to ensure alignment between Corbion’s actions and the actions of our suppliers on business ethics, human rights, labor conditions, and environmental practices. In 2024, we updated the code in accordance with the OECD Guidelines for Multinational Enterprises, United Nations Guiding Principles for Business and Human Rights, the Ethical Trading Initiative Base Code, Accountability Framework Initiative, and the fundamental conventions defined by the International Labour Organization (ILO). The code includes provisions addressing worker safety, human trafficking, use of forced labor, and child labor, all in line with applicable ILO standards. All our raw materials suppliers must sign this code to confirm their adherence or demonstrate commitment through their own company policies that embrace the code’s standards. When necessary, we support suppliers in understanding and meeting the requirements of the code.

Cane Sugar Code

Corbion’s Cane Sugar Code defines specific requirements for producing sustainable cane sugar, based on Bonsucro’s definitions for sustainable sugarcane and derived products. In relation to human and labor rights, it covers topics such as, child and forced labor, discrimination, freedom of association, availability of grievance mechanisms, compliance with ILO standards, safe and healthy working conditions, appropriate wages and working hours, plus documented and legal employment. Implementation is monitored through audits and certification. For more details on our audit program, see our Cane Sugar Policy (new window).

Palm Oil Policy

Corbion’s Palm Oil Policy reflects our commitment to implement RSPO certification across every product in our portfolio that contains palm oil and/or ingredients derived from palm oil. To report on our progress toward this goal, we send RSPO an Annual Communication of Progress, which is published on the RSPO website. In addition to executing internal policies, we comply with NDPE principles based on RSPO’s Principles and Criteria For the Production of Sustainable Palm Oil (2018) and we require our suppliers to do the same.

The Chief Technology Officer, Chief Operating Officer, Vice President Sustainability, and Vice President Procurement hold joint accountability for the implementation of these codes and policies.

Engagement, grievances, and remediation

Engagement

Corbion’s human rights due diligence process involves regular engagement with potentially affected stakeholders, including suppliers, smallholder farmers in our agricultural supply chain, and local communities. Engagement throughout our supply chain takes the form of supplier meetings, supplier days, surveys and meetings with NGOs as credible proxies for supply chain workers and smallholder farmers. Engagement with key sugar suppliers is ongoing, while engagement with NGOs as proxies typically takes place ad-hoc and as part of our double materiality assessment and member meetings. Our approach to engagement is outlined in our Stakeholder Engagement Policy (new window), which provides definitions of key terms, specifies different types of engagement, and explains important underlying principles. Currently, Corbion does not have Global Framework Agreements or similar agreements with global union federations.

In 2024, to address limitations in obtaining direct feedback from value chain workers, we began working with our key sugar suppliers in Thailand and Brazil to launch a direct worker engagement pilot project. The aim of the project is to collect information on working conditions and related issues from smallholder farmers who are particularly vulnerable to negative impacts, including migrants and female workers. This project is taking place throughout 2024 and 2025 in collaboration with other end users of sugar. The effectiveness of this engagement and its outcomes will be assessed upon receiving the first results. 

Grievances

Using SpeakUp, a dedicated online channel, our suppliers can file grievances related to Corbion’s business conduct, including potential violations of the Corbion Code of Business Conduct, Supplier Code, Cane Sugar Code, any applicable laws and regulations or certification standards as well as situations where the public interest is at stake. Suppliers are made aware of the channel through the Supplier Code. Reports of suspected violations are kept confidential to the highest extent possible, consistent with the need to conduct an adequate investigation. Suppliers filing grievances are protected against retaliation if concerns about suspected misconduct are reported in good faith, even if these turn out to be unfounded. For more information on how grievances are handled, please see the section Speak Up channels and Anti-Retaliation Policy (new window).

As an RSPO and Bonsucro member, Corbion provides affected workers in the palm oil and cane sugar supply chains with an opportunity to file grievances through the mechanisms provided by RSPO and Bonsucro. Suppliers are required to make grievance mechanisms available at the workplace level and are asked to notify Corbion if this is not possible. In such instances, Corbion supports the supplier in understanding and implementing this obligation. In addition, we use SMETA self-assessment questionnaires to monitor the availability of grievance mechanisms at the sites of our high-risk suppliers. Going forward, the results of direct worker surveys in our sugar supply chain will give us more granular information on the practices of our suppliers in this industry, further informing our due diligence process and actions.

Remediation

In 2024, Corbion reviewed its internal processes for providing remediation where adverse impacts are identified as part of its due diligence process. Potential human rights impacts are assessed by an internal human rights specialist, in accordance with the United Nations Guiding Principles on Business and Human Rights, as well as the OECD Due Diligence Guidance on Responsible Business Conduct. Remediation is based on whether Corbion is potentially causing, contributing to, or linked to the potential or actual negative impact, with external expertise consulted when necessary. We also collaborate with industry peers and multistakeholder organizations to prepare for situations where remediation or joint leverage to facilitate remediation may become necessary. The effectiveness of eventual remedies is evaluated in dialogue with affected stakeholders or their proxies and, if necessary, with the involvement of external expertise.

Performance

Targets

In 2023, we investigated the verification options for sugar sourced in the US, which is used as an ingredient for functional blends and covers <1% of our target scope. Because we lack sufficient leverage and the options for verification in the US are limited, we focus our efforts on the verification of cane sugar used for fermentation, hence we adjusted our 2025 and 2030 targets from 100% to >98% and >99% respectively. No other changes beyond our security of supply process and related mitigation measures are deemed necessary. Targets are not based on scientific evidence. These targets are similar to those mentioned in the chapter on Biodiversity (new window), as responsible sourcing of sugar encompasses protection for ecosystems as well as ethical treatment of workers. We have not set targets related to advancing positive impacts. For further information on our biodiversity accounting policies, see Appendix 2: Definitions (new window).

Actions and progress

Delivering a positive social impact through our solutions, starts with understanding the social impact of business activities throughout our supply chain and how they affect our stakeholders. We have therefore implemented a broad range of measures and programs to evaluate actual and potential human rights and labor rights impacts on supply chain workers and smallholder farmers in our high-risk geographies and sectors. These initiatives are outlined below and include: the Supplier Sustainability Risk Assessment and the Responsible Sourcing of Cane Sugar and Oil Palm. We have not defined time horizons for actions or made broader changes to our overall business model or strategies based on the assessment process in 2024, however, we are currently reviewing our approach in light of emerging legislation.

Supplier sustainability risk assessment

We assess all our raw material suppliers for potential risks related to human rights and environmental impacts. This sustainability risk assessment is conducted using RepRisk, a tool that systematically identifies material ESG risks by analyzing information from public sources and stakeholders. It also considers specific risk elements, such as the use of SIN-listed raw materials and potential conflict minerals. The risk assessment results in a high, medium, or low score for each raw material/supplier combination. The risk assessment is updated annually and conducted for any new raw material or suppliers. Alongside these assessments, Corbion uses the Supplier Ethical Data Exchange (SEDEX) platform and the SEDEX Members Ethical Trade Audit (SMETA) to monitor the social performance and compliance of our high-risk suppliers.

Responsibly-sourced cane sugar

Only 8% of the world’s sugarcane-growing areas are certified to the Bonsucro Production Standard (new window); for our main sourcing area, Thailand, this figure is less than 4%. As a result, we cannot source 100% Bonsucro-certified sugar.If a cane sugar supplier is not yet able to supply Bonsucro-certified sugar, we conduct a thorough auditing process (new window). In 2024, we verified that 99% of our total cane sugar consumption met the requirements of our code, compared to 98% in 2023, thereby achieving our 2025 and 2030 targets. This includes around 36% Bonsucro-certified sugar. This process helps us work toward our supplier’s compliance with relevant ILO standards and adequate mitigation of any potential or actual negative human rights and labor rights impacts on supply chain workers, at the mill and farm level. Identifying non-compliances related to these impacts allows us to work with suppliers to create and implement corrective action plans, thus ensuring an improvement in the working conditions of affected supply chain workers. Non-compliances and follow up actions are tracked as part of our auditing program and effectiveness is ensured through subsequent audits, as well as training delivered to workers at the relevant mills.

Responsibly-sourced palm oil

Sourcing 'Responsibly-Sourced Palm Oil' (RSPO-certified palm oil) can significantly mitigate the negative impacts on labor and human rights of workers and farmers in palm oil supply chains. Our Palm Oil Policy describes our requirements for responsible sourcing of palm oil, including no deforestation, no peat, and no exploitation. Since 2020, 100% of our palm oil and primary oleochemicals have been RSPO certified.

In 2024, we continued the implementation of RSPO certification for our secondary oleochemicals. The divestment of our emulsifier business, however, has significantly decreased our dependence on palm oil and caused us to review our approach in this area going forward.

The implementation of our actions involve colleagues from the sustainability team and procurement.

Actions on engagement, grievances, and remediation

In 2024, to address limitations in obtaining direct feedback from value chain workers, we began working with our key sugar suppliers in Thailand and Brazil to launch a direct worker engagement pilot project. The aim of the project is to collect information on working conditions and related issues from smallholder farmers who are particularly vulnerable to negative impacts, including migrants and female workers. This project is taking place throughout 2024 and 2025 in collaboration with other end users of sugar. The effectiveness of this engagement and its outcomes will be assessed upon receiving the first results. 

In 2024, no severe human rights issues and incidents connected to Corbion’s upstream and downstream value chain have been reported.