Responsible procurement is our programme to ensure that we, together with our suppliers, contribute to a more sustainable and responsible future. Leading by example we clearly state in our Sustainability Commitments 2030 that we place sustainability at the core of our business, which certainly includes our sourcing activities.
Find a brief presentation on responsible procurement in the Downloads area.
Our main goal is to – in a first step - increase transparency throughout our value chain so we can fully understand and measure its social and environmental footprint. In a second step we then engage with suppliers on specific ESG focus topics like carbon emission reduction, human rights, environmental practices, occupational health and safety as well as corporate governance and compliance to continuously make this world a better place.
We measure the progress we are making towards this goal by our Supplier Sustainability Performance Rate KPI. The target is to have 80% of critical supplier spend confirmed with a green ESG rating.
We proactively manage sustainability risks along our supply chain and engage with suppliers to prevent risks and mitigate potential impact on an individual basis. If risks or violations are identified, we work closely with the supplier to address and resolve them. However, if all corrective measures fail, we reserve the right to end the business relationship.
A core element of our approach to make our upstream supply chain more sustainable is our Supplier Code of Conduct (see Downloads). It sets out essential requirements for working in the areas of human rights, working conditions, labour, environmental standards and business ethics that suppliers have to meet. Supplier compliance with these standards enables us to build trustworthy and long-term relations.
As our network of suppliers spans the globe, we collaborate with two partners (Avetta and IntegrityNext) to efficiently engage with suppliers on different ESG aspects. This is done through standardized questionnaires for suppliers. The questions are based on – among other standards – the principles of the UN Global Compact as well as the fundamentals of the German Supply Chain Due Diligence Act. To ensure that both global and local requirements in the areas of human rights and environmental regulations are met, we require clear answers from our suppliers, which can be verified by Heidelberg Materials if necessary.
If you were invited to an assessment, find more information in the HM Supplier Assessment FAQ (see Downloads).
We work proactively with our suppliers on sustainability topics and help them to meet the ESG requirements that they are expected to fulfill. In addition to individualized training and knowledge-sharing activities, we offer sustainability training videos, produced together with our ESG and Compliance experts. Suppliers are asked to watch these videos, distribute them in their organizations and their own value chain to increase awareness of and compliance with key aspects of human rights, environmental protection and occupational health and safety:
On-site audits are used to monitor the implementation and execution of our standards. They help us to validate information provided by suppliers during initial assessments, to monitor performance improvement, and to ensure that our supply chain standards are complied with. Moreover, they allow us to closely collaborate with our suppliers towards a stronger sustainable performance.
In order to increase suppliers’ awareness on sustainability, we engage with suppliers at different get-together events and virtual supplier days on various ESG topics.
Compliance Hotline
To report if someone from our network does not comply with the applicable laws and international ethical standards, you can use our anonymous Speak-up internet portal.
