Responsible and ethical business conduct extends to everyone we do business with across our supply chain. To foster a safe and healthy work environment, uphold fair labor practices, and strengthen our commitment to sustainability, we continuously expand and enhance our partnerships with more than 12,000 suppliers. We expect all our suppliers to adhere to the principles outlined in our Business Partner and Supply Partner Code of Conduct (LINK) conducting business ethically and responsibly while creating long-term sustainable value for our customers. 

Supply chain risk management 

We have built a comprehensive and scalable supply chain risk management program focused on identifying, assessing, and mitigating supplier risks. This program helps reduce overall exposure by proactively addressing potential concerns and responding swiftly to emerging risks. 

To identify, assess, manage, and mitigate potential risk to our supply chain, we follow our supplier assessment framework: 

Learn more about our supplier audit and risk management in our 2024 Sustainability Report

Sustainability Sustainabilty Assessments 

We use EcoVadis and similar sustainability assessments to evaluate our suppliers’ performance in key areas, including labor practices, human rights, environmental protection, ethics, and sustainable procurement. These assessments help us identify both risks and opportunities while supporting our suppliers in tracking and improving their sustainability performance over time. 

The EcoVadis assessment platform and its risk management tool, IQ, have enabled us to evaluate high-risk suppliers, industries, and regions. By the end of 2024, 42% of Xylem’s global supplier base by spend had completed an EcoVadis assessment and maintained an active scorecard. We continue to expand our supplier spend coverage over time. 

We actively review scorecards with our suppliers and collaborate on corrective actions when performance falls below expectations. Our suppliers’ average rating exceeds the EcoVadis network average across overall and individual module scores, with steady improvements since 2020.