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Risk Detection & Assessments

We implemented a set of interconnected controlling mechanisms which are customised for the supplier’s risk level or are connected to specific risk categories such as Responsible Minerals Sourcing or CO₂ emissions.

1. Risk-based approach

Our purchasing activities have impacts on our suppliers, local communities and the environment in our procurement markets. Consequently, we actively monitor and engage with our suppliers to drive and support their efforts to enhance sustainability practices. Our collaboration with suppliers is based on the Siemens Code of Conduct, which reflects our Siemens core values and ensures adherence with national and international legislation. While all Siemens suppliers have to contractually commit to the principles of the Siemens Code of Conduct, inherent risks remain. With thousands of suppliers across the world, Siemens' purchased goods and services are valued at approximately half of our total revenue. Given the varying conditions in diverse countries, ensuring strict compliance with our globally applicable sustainability requirements poses a significant challenge in our daily procurement practices.

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2. Risk Detection & Assessments

We use the following assessments (desktop to on-site) to check our suppliers’ sustainability efforts.

Corporate Responsibility Self-Assessment (CRSA)

Why do we need CRSAs?

Siemens uses Corporate Responsibility Self-Assessments (CRSA) to check if suppliers are observing the company standards and sustainability rules. A CRSA serves three important purposes:

  • Information about minimum sustainability requirements necessary to become a Siemens supplier
  • Method to identify risks and opportunities for improvement at an early stage in our cooperation (during the supplier qualification)
  • Development of corrective actions, where appropriate.
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External Sustainability Audits (ESA)

Why do we need ESAs?

Siemens uses External Sustainability Audits (ESA) to check if suppliers observe the company standards and sustainability rules. ESAs are intended to verify adherence to the requirements of the Code of Conduct for Siemens Suppliers and Third-Party Intermediaries and assess the sustainability performance of our supply chain. In certain situations, the outcome of a CRSA indicates the need for an ESA to address potential sustainability risks.

Responsible Minerals Sourcing (RMS)

We are clearly committed to the responsible sourcing of minerals

To support the responsible sourcing of minerals in our supply chain, Siemens has developed the Responsible Minerals Sourcing Policy, which is integrated into our purchasing process. Explore the Responsible Minerals Sourcing Homepage on the button below.

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Carbon Web Assessment (CWA)

We underline the need for business to lead by example and contribute to decarbonising the economy

Siemens extends its responsibility beyond the purely legal requirements by also measuring our suppliers' sustainability performance. Currently, the main element in our efforts is the Carbon Reduction @ Suppliers programme. We assess this via the Carbon Web Assessment (hosted in the supplier+s platform by ctrl+s GmbH).

Find out more

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3. Consequences of Deviations

In the case of deviations from the Code of Conduct, Siemens and the supplier will agree to implement sustainable measures for improvement within a suitable time frame.

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The rectification period varies based on the type and severity of the deviation, during which the supplier promptly implements necessary corrective actions. These measures impact the supplier’s performance rating, future potential and approval within the qualification process.

As a supplier, you actively ensure compliance by:

  • Responding promptly to enquiries
  • Cooperating when risks arise from Corporate Responsibility Self-Assessment findings
  • Granting auditors access to relevant documents
  • Facilitating confidential interviews during audits

For minor breaches, a binding improvement period is established. For significant breaches (e.g. risks to employees), a failure to address the issue within the agreed timeframe may lead to termination of the business relationship.

Find out more about the Code of Conduct!