For more than 120 years, both in our own operations and in our value chain, Roche has fostered the protection of Human Rights. As part of our commitment to sustainability, we are continuously making impactful and positive contributions in areas that are within our sphere of influence. Vulnerable populations associated with our suppliers are protected through the clear communication of sustainability related expectations and our formal supplier sustainability audit program. Vulnerable populations include children, underage workers, migrants, local underprivileged communities and people with low levels of education.
The Roche Supplier Code of Conduct, required to be included in every Roche contract, incorporates the five auditable key principles of the Pharmaceutical Supply Chain Initiative (PSCI):
Ethics: Suppliers shall conduct their business in an ethical manner and act with integrity.
Human Rights and Labour Rights: Suppliers shall be committed to ensuring the Human Rights of workers and treating them with dignity and respect.
Health and Safety: Suppliers shall provide a safe and healthy, including for any company-provided living quarters.
Environment: Suppliers shall operate in an environmentally responsible and resource-efficient manner. Suppliers are expected to conserve natural resources by sourcing materials sustainably, to minimise the use of hazardous materials, to engage in activities that reuse and recycle, and are encouraged to reduce greenhouse gas emissions.
Management Systems: Suppliers shall use management systems to facilitate Compliance and continual improvement of these principles.
The “Human Rights and labor rights” topics noted above include expectations related to the following:
Forced labor
Human trafficking
Child labor
Freedom of association
Fair Treatment
Discrimination
We have a formal process and methodology for assessing our suppliers in order to identify those at higher risk for Human Rights violations due to:
Being associated with an industry that is likely to employ vulnerable populations
Being located in a region at higher risk for Human Rights violations, per respected Human Rights indices
Being associated with government, media or internal reports of alleged behavior or operations that indicate real or potential noncompliance with the Roche Supplier Code of Conduct
This Human Rights risk assessment is embedded in our standardized due diligence process conducted before engaging new suppliers. It is used to identify suppliers for inclusion in our Supplier Sustainability Assurance Visit (SSAV) program, through which we directly evaluate supplier Human Rights compliance.
In 2022 we conducted 51 SSAV audits during which we identified more than 150 Human Rights related findings. The findings included excessive overtime, incorrect overtime compensation, delayed payment of wages, and inadequate maintenance of employee time records. Each of the 51 audited suppliers was required to establish and make progress on a formal corrective action plan (find an example
Formal SSAV follow-up ensures progress on, and closure of, audit findings.
Roche’s expectation that suppliers adhere to our Human Rights protection requirements is non-negotiable. Roche has set a global goal to reduce greenhouse gas emissions by transitioning our fleet to electric vehicles. Because we understood the Human Rights risks associated with the mining of conflict minerals used in electric vehicles, our Global Procurement fleet team established Human Rights criteria for selecting electric vehicle providers. Electric vehicle manufacturers must:
Accept Roche’s Supplier Code of Conduct, including Roche’s right to audit electric vehicle manufacturers for related labor and Human Rights compliance,
Be in full compliance with the OECD Guidance on Responsible Supply Chains,
Have an ethical mineral sourcing code of conduct that protects miners and families, and
Have a recycling program for conflict minerals.
Electric vehicle manufacturers who cannot meet these requirements are excluded from opportunities related to our fleet.