Supplier Social Assessment | 414-1

New suppliers that were screened using social criteria

With the help of a systematic management approach, we ensure that suppliers meet our standards: As part of this, all new suppliers must provide information on quality, product safety and environmental aspects as well as on their sustainability programs, on their assumption of social responsibility within their supply chains and their compliance with ethical standards. We require the safeguarding of general human rights, an undertaking not to make use of child labor or forced labor of any form and compliance with statutory health and work safety requirements. Furthermore, we expect our suppliers to allow their employees the right to freedom of assembly and collective bargaining, to observe at least the statutory provisions on working times and pay, and to make a clear commitment against discrimination and abuse. These standards constitute part of our Group-wide risk management system. As part of this, we carry out systematic risk and performance assessments of all suppliers on the basis of economic, ecological and social aspects.

We carry out audits for suppliers that pose an especially notable risk, that have crucial raw materials or that have had problems flagged in the assessment. These audits cover human rights aspects among other topics. If suppliers don't meet our defined standards, we jointly develop and implement improvement measures. If these standards are still not upheld after such attempts, the business relationship is terminated as a last resort. Cases in which a supplier relationship was terminated due to a breach of relevant criteria did not occur in 2017. All new suppliers were assessed on human rights.