“Sustainability in the Supply Chain” is based on a holistic approach that comprises the steps “Prevent – Detect – Respond” and concentrates on minimizing risks. The Code of Conduct for Siemens Suppliers and Business Partners is primarily based on the principles of the UN Global Compact and the International Labor Organization, but it is also reflected in our Business Conduct Guidelines, which are binding for all employees.
The Code of Conduct defines Siemens sustainability standards and principles for our partners, who are obliged to comply with its provisions:
As soon as a company transfers some of its reputational risk, corporate social responsibility and environmental impact elsewhere, it must tackle Supply Chain Management as one of its most pressing sustainability concerns.Dr. Klaus Staubitzer, Chief Procurement Officer
If our sustainability self-assessments or audits reveal infringements of our requirements, they must be remedied by the suppliers in question within a reasonable period of time. Besides follow-up audits carried out by our external audit partners, the responsible procurement units and the suppliers involved directly agree on the corrective actions defined during our audits. We reserve the right to end the supplier relationship in the event of serious infringements.
We firmly believe that our sustainability principles are at their most effective when they are applied voluntarily on the basis of personal conviction. The key elements here are broadening our suppliers’ capability and intensifying the transfer of knowledge about sustainability. We support our suppliers through our “Sustainability in the Supply Chain” and “Code of Conduct” brochures, and we explicitly encourage them to extend these values and sustainability requirements further into their own supply chain in order to create a network of interactions and business relations that are built on trust.
For this reason Siemens has developed a “Responsible Minerals Sourcing Policy” and integrated it into the procurement process. The company thus guarantees a uniform and enterprise-wide duty of care within the supply chain. Our approach is aligned with the risk-based requirements of the “OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas,” which also sets the standard for national and international regulations, for example in the USA and the European Union.
Siemens acknowledges its responsibility within the supply chain. Like many other companies, Siemens too is aware of the problem that products and components purchased from suppliers may contain minerals from conflict regions.
In order to determine the use, sources and origin of certain minerals in our supply chain, we seek to identify smelters operating within our supply chain. Here we pursue the path towards a transparent supply chain working closely with the “Responsible Minerals Initiative” (RMI, formerly known as the Conflict Free Sourcing Initiative). When seeking information from our suppliers we make use of the RMI’s “Conflict Minerals Reporting Template” (CMRT) and notify our RMI partners of the smelters identified. The initiative then checks whether the smelters identified are certified. Siemens is an active member of the “Responsible Minerals Assurance Process” (formerly the Conflict Free Smelter Program), and encourages any as yet uncertified smelters to take part in audit programs, supporting them on the path toward the final audit and certification. In each case the results are communicated via the RMI website: www.responsiblemineralsinitiative.org.
We are confident that the concerted approach and the certification of smelters and refiners will boost the demand for conflict-free raw materials and increase transparency in the entire supply chain. You can find further information and our Responsible Minerals Sourcing Policy at: www.siemens.com/responsibleminerals.
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