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  • 2017 Corporate Responsibility Report
2017 Corporate Responsibility Report

Suppliers

Sustainable Procurement ESG KPI

The Sustainable Procurement ESG KPI img remained on a stable level against the prior-year figure. The share of the procurement volume that has been risk-assessed momentarily amounts to 81 percent. Over the next two years, we expect our Sustainable Procurement ESG KPI to remain stable at a high level. Our aim is to keep a coverage of at least 80 % until 2020.

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 stay at a constant level.

Reporting against standards

The Sustainable Procurement ESG img  KPI img  together with information about our strategic approach fully covers the GRI 412-1 (Human Rights Assessment) and GRI 414-1 (Supplier Social Assessment ) 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).

CDP Supply Chain Coverage ESG KPI

The ESG KPI img „CDP img Supply Chain Coverage“ is reported externally for the first time in 2017. It indicates the degree to which our procurement volume from carbon intensive suppliers is covered by the CDP Supply Chain Program. The share of the procurement volume that has been covered by the CDP Supply Chain Program in 2017 amounts to 66 percent. Our target is to cover 70 percent of our carbon intensive suppliers by 2020.

CR-qualified TOP 200 supppliers ESG KPI

The ESG KPI imgCR-Qualified Top 200 Suppliers“ * is an internal management indicator which complements the ESG KPI “Sustainable Procurement”. While the ESG KPI “Sustainable Procurement” measures the share of procurement volume reviewed according to sustainability criteria, the KPI “CR-Qualified Top 200 Suppliers” reflects the share of suppliers from the Top 200 Suppliers pool. These are reviewed based on sustainability criteria according to Self-Assessments, Audits img, Supplier Sustainability Workshops and Supplier Development Programs. The share of suppliers taken from the Top 200 pool amounts to 72 percent in 2017. Our target is to reach 75 percent by 2020.

In the future, we will concentrate to monitor product groups/suppliers fraught with risks even more by using adequate regulation tools.

Supplier relationships

The percentage of audited procurement volume decreased slightly from 36% in the previous year to 33% in 2017. At the same time, the percentage of procurement volume covered by E-TASC img stabilized at 43 percent. A supplier prequalification process via the Supplier Management Portal (SMP) took place for 64% of the procurement volume in 2017, compared with 63% in the previous year. Prequalification is mandatory for all suppliers for which we anticipate an order volume of more than 100,000 euros. In 2017, 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%. 

Reporting against standards

The Sustainable Procurement ESG img  KPI img  together with information about our strategic approach fully covers the GRI 414-1 (Supplier Social Assessment) 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).