• Act responsibly. Enable sustainability.
  • 2015 Corporate Responsibility Report
2015 Corporate Responsibility Report

Suppliers

Sustainable Procurement ESG KPI

The Sustainable Procurement ESG KPI img indicates a considerable year-on-year increase at 78 percent, because we audited more suppliers than originally anticipated for their compliance with our social and environmental standards. This is significantly higher than the target value of 75 percent we forecast for 2015.

We measure the degree to which our procurement volume is covered by sustainable activities with the Sustainable Procurement ESG KPI img. It measures the share of procurement volume we obtain from suppliers where one or several Group companies of the corporate group have been assessed for compliance with our social and environmental standards by way of self-assessments and/or audits. This also applies for audits carried out on subcontractors. In the coming years we expect our Sustainable Procurement ESG KPI to rise slightly above the figure achieved in the reporting year.

Reporting against standards

The Sustainable Procurement ESG  KPI  together with information about our strategic approach fully covers the G4-HR9 (Audit img ) and G4-HR10 (Suppliers and human rights) GRI indicators. By providing this information, we cover the V28-04 EFFAS indicators (Supply Chain). It is also relevant for criteria 1 (Opportunities and Risks), 3 (Sustainability Goals), 4 (Value Added Chain), 6 (Rules and Processes), 7 (Performance Indicators) and 17 (Human Rights) of the German Sustainability Code. It is also used for reporting in accordance with the Global Compact  Principles 1 (Supporting and respecting human rights), 2 (No complicity in human rights abuses) and 5 (Effective Abolition of Child Labor).

The percentage of procurement volume generated with companies registered in the industry information tool E-TASC img increased significantly from 43 percent in the previous year to 63 percent in 2015. At the same time, the percentage of procurement volume generated with audited companies decreased from 39 percent to around 31 percent. A supplier prequalification process took place for 51 percent of the procurement volume in 2015 via the Supplier Management Portal (SMP), compared with 37 percent the previous year. Prequalification is mandatory for all suppliers with which we anticipate an order volume of more than 100,000 euros. The share of procurement volume obtained from developing and emerging markets remains steady at 1.0 percent.

Reporting against standards

The Sustainable Procurement ESG  KPI  together with information about our strategic approach fully covers the G4-HR10 (Suppliers and human rights) GRI indicators. We also comply with criterion 17 (Human Rights) of the German Sustainability Code. The KPI  is also relevant for the EFFAS indicator (V28-04) and for criteria 1 (Opportunities and Risks), 3 (Sustainability Goals), 4 (Value Added Chain) and 6 (Rules and Processes) of the German Sustainability Code. It is also used for reporting in accordance with the Global Compact  Principles 1 (Supporting and respecting human rights), 2 (No complicity in human rights abuses) and 5 (Effective Abolition of Child Labor).

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