DLH develops a new GSP to improve supplier due diligence

Feb 09, 2012. /Lesprom Network/. DLH sources timber from a vast range of countries-of-harvest, working with over 700 suppliers. DLH therefore needed a partner for the challenge of demonstrating EU Timber Regulation compliance and compliance with its own CSR related policies, as the company said in a press release received by Lesprom Network. “There was no doubt that Track Record Global was the right partner for us – a company with many years of experience working with traceability and risk management in the timber sector.”- says Peter K. Kristensen, Vice President CSR & Environment, DLH. In May 2011, DLH and Track Record Global began cooperating on the development of a new edition of DLH’s due diligence system, The Good Supplier Programme (GSP). “Since the launch of the first GSP ten years ago, the programme has proven to be a very valuable due diligence tool that has helped us understand our suppliers and manage our international supply chains.” – says Peter K. Kristensen and continues: “Track Record is assisting us in developing a new and innovative GSP”. DLH’s CSR undertakings have grown over the years. In 2010 the company committed to implementing the principles of UN Global Compact. In the same year DLH adopted a new corporate strategy, divesting itself of production activities whilst focusing business on sourcing and distribution. The implementation of an effective supplier due diligence system became essential for the re-focused strategy. In light of these developments and the new EU Timber Regulation (EUTR) requirements, DLH believes that an improved, more systematic and comprehensive due diligence system will provide key tangible benefits to the company, long-standing customers and other key stakeholders. The new GSP was pilot tested with success in Brazil last December. Full implementation will take place during 2012. DLH is one of the world's major timber wholesalers with sales and procurement offices in more than 25 countries on 5 continents. The European Union Timber Regulation, passed in October 2010, prohibits the placing of illegally harvested timber for the first time in the EU market. It requires operators who place timber products for the first time in the EU to exercise due diligence to minimize the risk of illegally harvested timber entering the EU market. It requires traders that purchase timber already placed in the EU to keep records of their suppliers and customers to facilitate traceability. The Regulation comes into force on 3 March 2013.