A new Volkswagen Group sustainability ranking for its suppliers comes into effect today (1st July 2019).
VW says the worldwide supplier rating scheme will enable the company to assess the sustainability conduct of its business partners in its supply chain with regard to risks relating to human rights, environmental protection and corruption.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Dr. Stefan Sommer, Board Member for Components and Procurement said: "We are convinced that a sustainable supplier network is a guarantee of long-term corporate success. Sustainability is becoming a decisive business factor".
In a Sustainability Rating, the suppliers first provide a self-assessment of their sustainability conduct on the basis of a questionnaire and documents supplied. The data and documents are checked by qualified third parties, VW says. In case of doubt, on-site checks are carried out. If misconduct occurs in the areas of environmental/social affairs or corruption, these lead to exclusion from the award of contracts.
Hiltrud D. Werner, Board Member for Integrity and Legal Affairs, says about the enforcement of the standards in the often deeply staggered supply chains: "We are aware of our responsibility on further steps along the supply chain. However, the demand for sustainability standards and integrity is actually only possible with our direct contractual partners. We use this lever as a matter of priority in the supply chain by requiring our contractual partners to pass on our requirements to their partners."
The sustainability requirements are described in the Volkswagen Group's new "Code of Conduct for Business Partners", which is binding for all companies in the supply chain. It refers to respect for human rights, compliance with occupational health and safety, environmental protection and the fight against corruption.
For almost a year now, the Volkswagen Group has been preparing its business partners for the Sustainability Rating with information, events and workshops. It is now being gradually introduced in the brands and into the regions. For the future it is planned to extend the Sustainability Rating to CO2 emissions in the supply chain and to include them in the awarding process as part of the decarbonisation process of the Volkswagen Group.
