ESRS Standard
ESRS Standard
The term"Policy" is synonymous with the term"Policy", which is used within the German version of the ESRS Standard.
12. the company shall provide information on the management of its relationships with its Suppliers and the Impacts on its Supply chain.
(13) The purpose of this disclosure requirement is to provide an understanding of how the company manages its procurement procedures, including fair behavior towards suppliers.
14. the company shall describe its policy to prevent late payment, in particular to SMEs.
15. the disclosure referred to in paragraph 12 shall include the following information
(a) the company's approach to its relationships with its Suppliers, taking into account Risks to the company related to its Supply chain and Impacts on sustainability aspects; and
b) whether and how it takes social and environmental criteria into account when selecting its suppliers.
Application Requirements (AR)
Application Requirements (AR)
AR 2 For the purposes of this standard, the management of the company's relationships with its suppliers may include the following:
(a) how the company's practices, including activities to avoid or minimize the Impacts of disruptions to its Supply chain, support its strategy and risk management,
b) Training of the company's procurement/supply chain workforce on engagement and dialog with Suppliers and incentives for procurement workers and whether these incentives also relate to price, quality or sustainability factors,
c) the review and assessment of the social and environmental performance of Suppliers,
d) the inclusion of local suppliers and/or certified suppliers in its supply chain,
e) the extent to which the company's practices take into account vulnerable suppliers,
(f) the company's Targets and Actions in relation to communication and management of relationships with Suppliers; and
g) how the results of these practices are evaluated, including visits to suppliers, audits or surveys.
AR 3. "Vulnerable suppliers" include suppliers that are exposed to significant economic, environmental and/or social Risks.
Examples from previous practice
Examples from previous practice
Examples serve only as an indication of how a disclosure requirement has been stated by other companies to date. Audited ESRS reports are not yet available. There is no guarantee of accuracy and completeness.
G1-2 - Committed cooperation
The success of our corporate model is based on strong partnerships with suppliers who share our ethical principles. Our expectations of these partners are set out in the Supplier Code of Conduct.
This Code addresses Risks related to Labor Practices, Human Rights, Health and Safety, Environmental Protection, Corruption and Bribery in the Supply chain. Suppliers must comply with international human rights standards and national laws on issues such as Child labour, Forced labour, Working hours, Wages and Anti-discrimination.
We require that Suppliers prioritize occupational health and safety and environmental requirements and support us in reducing Scope 3 emissions in order to achieve net zero emissions by 2050. This includes providing emissions data and setting reduction targets that are in line with the Paris Agreement. Main suppliers must sign the Code and pass it on to their subcontractors and partners involved in the supply of goods and services.
Suppliers are checked for Risks using checklists and audits are carried out. The contract can be terminated if the code is breached. In 2023, 15 on-site audits and 84 virtual assessments were carried out.
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