Back to Top

Responsible business means ensuring high standards of conduct across our supply chain.

Supply Chain

Pace became a full EICC member company during 2013. Through 2014 we have continued to take our commitment to the Code of Conduct very seriously and to that end during the course of the year we evolved our component vendor CSR strategy and expectations. We have continued our engagement with an industry sector expert company for the purposes of independent assessment with the aim of using that process for complete transparency in evaluation and to drive the continuous improvement of our supply chain’s CSR performance.

Further independent assessments of Pace’s performance in these areas performed during 2014 continue to reflect the strengths of our ways of working with our supply chain to ensure the highest possible standards in labour, fair business practices, environmental performance and component vendor/partner CSR scrutiny.

The five principal elements of our CSR strategy for component vendors are now defined as: 

  • Alignment and support for the Pace “Responsible Business” policies.
    Including meeting our commitments as an EICC member company, a FTSE4Good member and under ISO 14001.
  • Alignment with our customers’ requirements and expectations.
    These requirements and expectations can include legislative elements considered good practice and/or policies in support of our customers’ strategies and commitments.
  • Continuous improvement of component vendor CSR performance by independent assessment.
    Engagement of an industry-recognised, independent expert to provide current status and priorities for Pace follow up and audit based on measured risk.
  • Supply chain awareness and education.
    Training and alignment with the requirements of Pace and our customers for our component vendors and for our EMS partners’ PSQE teams and management.
  • Requirements for continuous improvement and component vendor auditing.
    Working with our EMS PSQE teams in audit of our component vendors to Pace requirements as prioritised by our independent risk assessment.

Notable achievements in 2014 include:

  • Our key manufacturing partners are all EICC member companies, endorse the Code of Conduct, complete SAQ activities and embrace the EICC validated audit scheme.
  • Of our principle component vendors, representing 80% of our component spend, >92% have completed our independent CSR survey run by EcoVadis.
  • Multiple vendors are truly embracing the process and are either re-surveying on their own initiative or, as a result of requests from other clients, with the net outcome of improved performance.
  • In support of the Dodd-Frank Wall St Reform and Consumer Protection Act Section 1502, Conflict Minerals, Component Vendor surveys are again being performed on behalf of Pace to the latest CFSI templates, v3.01 and v3.02. Pace quality requirements for component vendors include policies on conflict free sourcing in line with the act. Furthermore, the EcoVadis assessment independently validates our component vendors’ conflict free sourcing practices.

Pace will continue in its commitment to drive these activities ahead of our customers’ and investors’ evolving expectations. The EcoVadis survey platform delivers comparative assessment of our component vendors’ attainment against CSR requirements with a direct influence on sourcing decisions. Poorer performing vendors are tasked with corrective actions via the system with consequence enforced for those who do not demonstrate the required improvements, as in 2015 and beyond we look to raise minimum performance standards.

With our manufacturing partners we are engaging in an onsite audit and risk‑based approach. Pace employees are on site throughout the year and undertake regular audits of all areas of operations. Any risk identified then generates an action plan with the use of independent EICC auditors to verify the manufacturing sites’ conformance to standards. All manufacturing partners will be covered by this strategy during 2015.

"Pace’s unswerving commitment to responsible business means that we need to communicate and measure how these expectations are met by our partners and vendors that form our supply chain. As CSR is an increasingly important element of our sourcing decisions, we need to ensure that our partners and suppliers align, collaborate and can continuously improve their standards in responsible business performance."

Martin Bubb
Head of Supplier Quality
Pace plc