Supplier Code of Ethics To help ensure the products we distribute are manufactured and delivered with high ethical standards, our Supplier Code of Ethics focuses on four main areas of ethical sourcing: human rights, labor, environment and anti-corruption. All Grainger suppliers and their sub-suppliers with dealings in the U.S., Canada and Mexico are expected to comply with the Supplier Code of Ethics as a condition of doing business with Grainger. Prior to onboarding, a new supplier must agree to abide by the Supplier Handbook, which includes applicable Grainger policies, transportation requirements and the Supplier Code of Ethics. All suppliers must confirm to abide by these rules by signing a Supplier Agreement Letter.
Human Rights Grainger’s Human Rights Principles reflect our philosophy on how we conduct business on a global basis, including the company’s commitment to providing a safe and fair workplace that upholds and respects international human rights standards. These principles are applicable to all Grainger team members and are approved and monitored regularly by Grainger’s senior leadership.
Conflict Minerals Grainger’s Conflict Minerals Policy supports the aim of the Dodd-Frank Act to prevent armed groups in the Democratic Republic of the Congo (DRC) and the surrounding region from benefiting from the extraction and trade of minerals including tantalum, tin, gold or tungsten sourced from the DRC and the surrounding region.
Supplier Engagement Grainger’s Supplier Engagement Program seeks to understand the material issues of the suppliers who are most impactful to our business. In 2019, we began to communicate more proactively with these key suppliers via quarterly calls and active feedback channels. We plan to continue this cadence in 2020 and expand future engagement topics.
Supplier Diversity Grainger’s Supplier Diversity Program assists customers in diversifying their supply chains and promotes the growth of underrepresented supplier groups. Grainger has more than 20 years of experience partnering with small and diverse businesses through two core programs. Grainger’s Supplier Diversity Program helps customers procure quality products manufactured or distributed by diverse suppliers. Grainger’s Channel Development Program promotes products sold by our network of Diverse Business Enterprise (DBE) resellers. In 2020, Grainger U.S. spent $1.7 billion with more than 19,000 small businesses, and $313 million with 730 minority-, woman-, veteran-, disabled-person- and LGBT-owned businesses for goods and services. Within our tier 2 supplier diversity portfolio, we offer more than 700,000 products from more than 2500 key small and/or diverse suppliers. Within our tier 1 channel development program, our authorized Diverse Business Enterprise resellers sold over $253M to more than 3,500 customers.
Transportation Logistics Grainger relies on a network of third-party carriers for our transportation needs. The company works closely with these providers to continuously identify opportunities to maximize efficiency and minimize fuel use. Grainger continues to be one of the only industrial suppliers to be recognized by the U.S. Environmental Protection Agency (EPA) as a SmartWay® partner.