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 whole world, Siemens purchased goods and services valued nearly 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.
To address this challenge, we employ a risk-based approach
Risk analysis by using risk indicators:
- To assess the sustainability risks of all our Siemens suppliers on a regular basis
- We utilize the professional services of an external provider who utilizes globally accessible information.
- The provider segments the information into various risk indicators, including country- and industry risk.
This gives a clear understanding of the distribution of sustainability risks and provides the basis of the decision which suppliers must undergo the “Corporate Responsibility Self-Assessment” or should be audited by a so-called “External Sustainability Audit”.
Other risk analysis processes:
Besides, specific risks can occur in the fields of e.g. “Responsible Minerals Sourcing (Conflict Minerals)" or “Climate Protection”. Respective supplier assessments are integrated into our Procurement processes and further described under the linked pages.
