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  • 2016 Corporate Responsibility Report
2016 Corporate Responsibility Report

Suppliers

Sustainable Procurement ESG KPI

The Sustainable Procurement ESG KPI img exceeded the prior-year figure by an even greater margin than forecast. The share of the procurement volume that has been risk-assessed already amounts to 83 percent. Over the next two years, we expect our Sustainable Procurement ESG KPI to remain stable at a high level.

We measure the degree to which our procurement volume is covered by sustainable activities with the Sustainable Procurement ESG KPI. 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 img together with information about our strategic approach fully covers the G4-HR9 (Audit) 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).

Supplier relationships

The percentage of audited procurement volume increased significantly from 31 percent in the previous year to 36 percent in 2016. At the same time, the percentage of procurement volume covered by E-TASC img dropped slightly from 45 percent to 44 percent. A supplier prequalification process via the Supplier Management Portal (SMP) took place for 63 percent of the procurement volume in 2015, compared with 53 percent in the previous year. Prequalification is mandatory for all suppliers for which we anticipate an order volume of more than 100,000 euros. In 2016, all suppliers whose qualifications had expired or were still pending or not yet completed were asked to complete the qualification once again. This allowed us to increase the number of qualified suppliers. 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 img 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 img Principles 1 (Supporting and respecting human rights), 2 (No complicity in human rights abuses) and 5 (Effective Abolition of Child Labor).