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Our Suppliers
409-1, 414-1 Carrier has embedded sustainability criteria for Preferred Level suppliers, which are incorporated into our Supplier Quality Manual. Suppliers are required to:
1. Have a code of conduct for ethics and sustainability appropriate for its business. 2. Have formal CEO or board-level commitment to continuous EH&S improvement. 3. Use an appropriate, written workplace
EH&S management system. 4. Have a current injury incident rate < 3.0. 5. Use root cause analysis following all serious or fatal injuries. 6. Demonstrate annual improvements in its use of energy. 7. Have formal EH&S goals. 8. Demonstrate annual improvements in workplace safety. 9. Demonstrate annual improvements in water use.
10. Include attainment of formal EH&S goals in executive compensation. 11. Demonstrate annual improvements in its waste recycling rate.
Our Supplier Portal shares metrics on performance with suppliers directly, providing timely feedback to drive higher levels of performance and hold underperforming suppliers accountable. To further demonstrate our commitment to our suppliers’ success, Carrier holds annual global and regional supplier conferences as a best-in-class forum to communicate requirements for sustainability, ethics and other key values of our business.
Achieving Supplier Excellence “Approved” or “Preferred” status are critical elements of our strategic sourcing decision process.
Our suppliers are critical to our success. To help ensure that we provide superior products and services in a responsible manner, we require our suppliers to meet our ethical and sustainability expectations as set forth in our Supplier Code of Conduct. The Code outlines what we expect from each of our product and service suppliers and it aligns with the expectations we place on our own directors, officers, employees and representatives. Suppliers are required to sign the Code of Conduct and flow down its principles to their supply base.
Carrier Preferred Supplier Criteria Our Supplier Excellence program is a key component of sustained supplier performance. Achieving the Carrier Preferred Supplier rating is an important distinction that brings suppliers considerable benefits and recognition.
First, suppliers can see substantial improvements in their operating performance. Second, suppliers gain recognition across Carrier, as the Carrier Supplier Chain Council – comprised of supply chain executives from each of our businesses – is engaged in the Preferred Supplier certification process. Supplier Excellence is complementary to a supplier’s current lean program and aligns with the Carrier Operating System.
Carrier’s Supplier Excellence program is a method to differentiate suppliers currently operating with high delivery and quality performance levels. It is a means of recognition for significant continuous improvement efforts and achievements of our suppliers who have achieved world-class levels of performance. The program tracks four levels of performance, with all suppliers expected to be at the “Approved” or “Preferred” levels. Suppliers who are not operating at these levels shall prepare an improvement plan for review with Carrier.
Conflict Minerals
Our Conflict Mineral Policy sets forth our preference to source tantalum, tin, tungsten and gold originating in the Democratic Republic of the Congo region from a smelter or refiner validated as conflict-free by an independent third party.
We support industry-wide initiatives that raise awareness for responsible sourcing of conflict minerals and support the development of conflict-free sourcing, such as the Responsible Minerals Initiative (RMI) where Carrier serves as a Member Partner. We expect our suppliers to comply with all applicable laws and regulations, and assist us in fulfilling our obligations.
Additionally, our contract terms and conditions require that our suppliers comply with the Dodd Frank conflict minerals requirements. Carrier was part of UTC in 2019. Consequently, UTC made the requisite disclosures to the U.S. Securities and Exchange Commission that reflected Carrier’s compliance, including with the OECD guidelines.
Supplier Diversity
Carrier recognizes that a key to our success has been our relationships with high-quality diverse suppliers. Our Supplier Diversity Program helps us build and maintain a diverse supplier base that helps drive innovation throughout our value chain. Through it, we establish relationships with qualified suppliers in more than a dozen diverse categories, creating value for our company and our communities. In 2019, we spent more than $495 million with firsttier suppliers in all diverse categories, representing approximately 17% of our supplier expenditures in the United States.
CARRIER SUPPLIER DIVERSITY SPEND
2017: 2017 16%
$399M
2018: 2018 16%
$439M
2019: 2019 17%
