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2016 Corporate Responsibility Report

Suppliers

We see more sustainability in our supply chain as an opportunity – for our reputation and our business success. Thus through a development program, we help strategic suppliers to introduce business practices that are socially and ecologically acceptable and economically efficient. The program showed measurable successes again in the reporting year. Better working conditions at our suppliers reduce the number of work-related accidents and the turnover rate. This increases productivity, while at the same time lowering costs for recruitment and training. Thus not only do we strengthen CR performance at our suppliers, we also significantly reduce identified risks. As part of our global procurement activities, we can be exposed to country- and supplier-specific risks. These include, for example, the use of child labor, the conscious acceptance of environmental damage or inadequate local working and safety conditions. However, the reporting of NGOs or media can give rise to risks to the Company’s reputation, but also to supply risks. We reduce these risks by systematically reviewing our suppliers. In the renowned RobecoSAM img sustainability rating we scored 98 out of 100 points for our supply chain management in the reporting year, five points higher than in the prior year. Our partnerships with suppliers that comply with international sustainability standards ensure a high level of product quality and reliable procurement.