Dangote Cement Plc Annual Report 2021
Governance continued
Sustainable supply chain strategy
The supply chain is integral to the corporate responsibility of
Dangote cement. Our sustainable supply chain management
strategy integrates two main approaches of risk management
and efficiency management. It is substantial to the business to
be able to handle emerging risks such as commodities (including
fuels), raw materials, spare parts and consumables. Therefore,
identifying and addressing or mitigating the respective risks is
crucial to sustainability.
To enhance the sustainability performance of our supply chain, an
ESG code of conduct for suppliers was also launched within the
year, setting the Company on a continuous improvement process.
Supply chain impact - Customer Trucks Empowerment
Scheme (CTES)
At Dangote Cement, we recognise that every purchasing
decision we make has an impact on the environment, economy
and society, from the energy we use to power our operations
to the conditions of the workers that made the products that
supplied to us. We plan to elicit suppliers, vendors or contractors'
commitment to best Environmental, Social and Governance
(ESG) principles and standards in their business relationship with
Dangote Cement through ESG Code of Conduct for Suppliers,
Vendors and Contractors.
The role of procurement as a facilitator for sustainable supply
chain management and engagement involves a deep culture
change, a new way of engaging in business relationships
with suppliers. This can be achieved through supplier forums,
surveys and various avenues for receiving feedback. In 2021, we
proactively engaged suppliers, vendors and contractors through
our annual stakeholder engagement and materiality assessment
survey and other vendor engagement forums to ensure common
understanding, alignment and commitment to the process. The
number of respondents in the materiality assessment survey were
45 suppliers, vendors and contractors. As part of our efforts to
create economic benefit to our host communities, actions were
taken to map waste for alternative fuel in those areas to enable
community members to participate in the cement value chain.
2017-2021 total procurement spending
700,000
35%
Amount spent on procurement
(Naira millions)
600,000
500,000
76%
65%
400,000
76%
300,000
57%
43%
200,000
100,000
24%
0
▬▬▬▬
66%
34%
24%
Procurement per year
2017
2018
2019
2020
2021
Total (million Naira)
370,521
418,690
434,065
509,964
632,960
Local (million Naira)
281,461
239,859
284,845
385,453
409,216
I Imported (million Naira)
89,060
178,831
149,220
124,511
223,744
Prioritising local content
As part of our corporate responsibility to our countries of
operation, we source much of our procurement needs from
local markets. It is only in cases where vendors for specific
goods and services could not be sourced locally that we resort
to importation.
Our local suppliers range from Small and Medium-Scale
Enterprises (SMEs) to large multinational companies. Patronising
local products and services is our way of boosting local
industries and entrepreneurship, supporting a stable local
economy, and propelling sustainable growth and development
in the African continent. In 2021, a total of #632,960 Million was
spent for local and imported procurements across all operations.
Out of the total procurement spending, N409,216 was spent
on local products and services while #223,744 was spent on
imported procurements.
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Dangote Cement Plc Annual Report 2021
DANGOTE
BlocMaster
PORTLAND LIMESTONE CEMENT
DANGOTE
3X
Xtra Life
PORTLAND LIMESTONE CEMENT
DANGOTE
3x
xtra Life
PORTLAND LIMESTONE CEMENT
42.58
50-1
42.58
50tg.
42.5N
DANGOTE
FALCON
KASETView entire presentation