Engagement, assessment, and training

Our supplier assessments give us baseline information on suppliers’ compliance with our sustainability commitments. They are a vital part of GAR’s supply chain transformation efforts. Supplier assessments help us determine how best to help our suppliers operate more responsibly. GAR then supports these suppliers through capacity building and sharing of best practices.

Supplier Assessment

GAR conducts the following supplier assessments:

Assessment of potential suppliers

Aside from commercial considerations, all potential suppliers are assessed based on Environmental, Social and Governance (ESG) criteria. This is part of the due diligence and screening process carried out before taking on new suppliers.

Systematic assessment of existing suppliers

All GAR-owned and third party mills are assessed annually to determine continued compliance with the GSEP. First, desk research and spatial analysis assessments are carried out to prioritise mills for further analysis. This mill prioritisation process identifies high-risk suppliers for site visits and deeper engagement.

Summary of mill prioritisation process in 2019
Facility Total Mills Volumes Procured from Total High Risk Mills Volume Procured Medium Risk Mills Volumes Procured from Low Risk Mills Volumes Procured From
(Unit) (%) (Unit) (%) (Unit) (%) (Unit) (%) (Unit) (%) (Unit) (%)
Belawan 145 930,687 25 17% 158,338 17% 74 51% 486,824 52% 46 32% 285,524 31%
Dumai 56 306,043 9 16% 9,925 3% 36 64% 47,691 16% 11 20% 248,427 81%
Lubuk Gaung 200 1,713,139 26 13% 191,565 11% 129 65% 946,897 55% 45 23% 574,676 34%
Marunda 87 1,214,247 5 6% 17,811 1% 54 62% 810,959 67% 28 32% 385,478 32%
Surabaya 22 478,794 2 9% 6,005 1% 12 55% 254,517 53% 8 36% 218,271 46%
Tarahan 144 1,876,007 15 10% 103,112 5% 82 57% 804,139 43% 47 33% 968,755 52%
Tarjun 82 1,266,115 14 17% 94,817 7% 53 65% 881,928 70% 15 18% 289,370 23%
All Facilities 470 7,785,031 74 16% 581,574 7% 287 61% 4,232,956 54% 109 23% 2,970,501 38%
Summary of engagement with high risk profile suppliers in 2019
Facility Total High Risk Mills High Risk Mills Engaged Via Deep Engagement: Site Visits, CFT, SMART STAR, SMART SPOT High Risk Mills Engaged via Broad Engagement: SMART SEED Time Bound Action Plan Total High Risk Mills Engaged
(Unit) (%) (Ton) (%) (Ton) (%) (Unit) (%)
Belawan 25 15 60% 20 80% 12 48% 23 92%
Dumai 9 5 56% 8 89% 4 44% 8 89%
Lubuk Gaung 26 14 54% 17 65% 13 50% 19 73%
Marunda 5 3 60% 3 60% 2 40% 4 80%
Surabaya 2 1 50% 2 100% 1 50% 2 100%
Tarahan 15 10 67% 11 73% 4 27% 12 80%
Tarjun 14 11 79% 14 100% 2 14% 14 100%
All Facilities 74 47 64% 56 76% 30 41% 63 85%

View reports detailing GAR’s site visits and our remedial strategies below.

Ad hoc site visits

We also carry out ad hoc site visits as part of our grievance handling process, whenever an issue is raised by an external stakeholder or discovered through our own issues monitoring. Our engagement is logged and reported in the Grievance List. You can find reports of these site visits here.