Minimum requirements for suppliers
- The Supplier Code of Conduct was revised and expanded to include additional sustainability aspects
- In the reporting year, the possibility of on-site sustainability audits by independent third parties was set
Supplier Code of Conduct as basis
Bestandteil des GNFK StartThe Schaeffler Group Corporate Supplier Code of Conduct forms the foundation for responsible collaboration with all of its suppliers, which is why it includes minimum requirements that go beyond national legislation and internationally recognized guidelines. The minimum requirements are based on the principles of the United Nations Global Compact (UNGC) and the core labor standards of the International Labour Organization (ILO). The Supplier Code of Conduct was revised in 2021 to better accommodate new customer requirements and the upcoming Directive on Corporate Sustainability Due Diligence. The Supplier Code of Conduct stipulates expectations regarding the treatment of employees and human rights issues. Suppliers of production materials are actively called upon to recognize the Supplier Code of Conduct or submit their own Code of Conduct. The scope of the Schaeffler Group Supplier Code of Conduct has also been expanded to include defined suppliers of non-production materials.
In 2021, the Purchasing & Supplier Management Sustainability department developed a training course for buyers on the topic of human rights due diligence in the supply chain, which the Schaeffler Academy can offer in multiple languages.Bestandteil des GNFK Ende
More information on human rights
The Schaeffler Group Supplier Code of Conduct is available at: Schaeffler Group Supplier Code of Conduct
With its Supplier Code of Conduct, the Schaeffler Group informs its suppliers that they, too, should actively assume responsibility for their environmental footprint, as a majority of the Schaeffler Group’s emissions occur in the supply chain. Steel plays a key role since it is required for many products.
More information on reducing carbon emissions in the supply chain
Surveillance of supplier activities
Bestandteil des GNFK StartTo obtain a deeper insight into sustainability performance, relevant suppliers are called upon to complete the Drive Sustainability initiative’s standardized survey (self-assessment questionnaire – SAQ) via the service provider NQC.
The Schaeffler Group aims to procure at least 90 % of its purchasing volume of production materials from suppliers with the SAQ by the end of 2022. In 2021, four SAQ training courses were offered in collaboration with NQC to suppliers that have not yet been assessed. The courses covered topics such as “Sustainability at Schaeffler” and “Sustainability requirements for suppliers”.
68.6 %
coverage of the purchasing volume of production materials with sustainability SAQs
In 2021, SAQ campaigns targeting Schaeffler suppliers were able to achieve a completion rate of 68.6 % (prior year: 30.9 %). As part of the ongoing improvement efforts, individual results were selected to assess risks and potential in the area of sustainability as well as promote long-term development of the business relationship together.Bestandteil des GNFK Ende
Consistent risk analysis
Bestandteil des GNFK Start A variety of sources such as established supplier certifications are analyzed for the purpose of risk assessment. Depending on the situation, the Sustainability department also covers human rights in its internal risk reporting. When establishing new business relationships, the Schaeffler Group conducts defined Supplier Initial Assessments.
In preparation for the Directive on Corporate Sustainability Due Diligence, the Schaeffler Group has developed a holistic approach to risk assessment in accordance with the OECD guidelines to fulfill its due diligence obligations in supply chains.
Other preparations were also underway at the company in 2021, with the aim of analyzing human rights risks in the supply chain and systematically preventing them. In addition to environmental and social aspects, a pilot project also assessed country- and sector-specific human rights risks associated with the suppliers active in 2020/21.
Moreover, the company identified various measures to be undertaken as countermeasures and to further develop suppliers. The criteria used are regularly reviewed, so that they can be adapted on the basis of evolving focus areas.Bestandteil des GNFK Ende
Consistent risk minimization
Bestandteil des GNFK Start The Schaeffler Group works consistently on identifying potential risks in the supply chain early on through Supplier Initial Assessments conducted before business begins. 133 new suppliers were assessed in the year under review, with some of the assessments conducted online due to coronavirus measures.
The company pursues the risk-based approach with risk analysis for existing, direct suppliers and also takes the whistleblowing system into account for indirect suppliers. Depending on the situation, the results of the risk analysis are verified through additional local audits conducted by third parties.
Potential violations of the Schaeffler Group standards can be reported using the global compliance whistleblowing system. By referring to the system in the revised Schaeffler Group Supplier Code of Conduct, the possibility of using this system is also explicitly communicated to the employees of suppliers.
No serious incidents with negative environmental or social impacts in the supply chain were identified in the year under review.Bestandteil des GNFK Ende
The Schaeffler Group Supplier Code of Conduct is available at: Schaeffler Group Supplier Code of Conduct