Sustainability Self Assessments

Implementing our supplier qualification process throughout the world in previous years enabled us to more than double the number of Self Assessments carried out in fiscal 2012.

Deviations identified by the questionnaire result in a feedback dialog being conducted with the buyer. As a result, the deviations can first be evaluated and improvement measures agreed. Alternatively, an external audit is initiated pursuant to the result.

All figures in this chapter refer to continuing activities. Previous years have been adjusted to be comparable.

In fiscal 2012, we conducted 153 supplier quality audits with a sustainability auditing module.
The decline is due to portfolio changes and a modified supplier quality audit procedure. We have effectively minimized the risks in our supply chain by both enhancing external sustainability audits and sustainability self-assessments and by increasing their number.

External Sustainability Audits

Newly initiated audits

Siemens initiated 357 new audits in the past fiscal year, an increase of around 25% over the previous year.

A decision on what further action to take is made on the basis of the number or severity of the deviations revealed by the audit. The buyer ensures that slight violations are remedied as part of normal supplier management. In the case of more serious violations, a follow-up audit is initiated, in which our external partners examine whether the supplier has implemented the agreed improvement measures after being set a reasonable period of time to do so.

Identified violations and agreed improvement measures
Improvement measures agreed with suppliers relate either to actual deviations from the Code of Conduct for Siemens Suppliers or to structural improvements of management systems and the lack of specific processes and guidelines at the supplier.

Suppliers are given an opportunity to correct the violation within a reasonable period of time. If a violation is particularly serious or the supplier is not willing to implement improvement measures, the business relationship with the supplier is ended as the last resort.

Eleven particularly serious violations were identified last year and all of them were corrected. Implementation of the measures was confirmed by our external audit partners in a follow-up audit.

The severest violations were identified in the categories of respect for the basic human rights of employees and environmental protection. The most frequent violations were against the principle of safeguarding the health and safety of employees.

Follow-up audits to External Sustainability Audits

In addition, 182 follow-up audits were conducted in the past fiscal year. In them, implementation of the agreed improvement measures is verified by a further on-site examination.