SUSTAINABILITY REQUIREMENTS FOR SUPPLIERS TO THE DZ BANK GROUP
In 2010, DZ BANK updated the existing standards to include new minimum social and environmental standards and integrated them into its purchasing processes. These provide a framework that lays down the financial, environmental, and social standards, for example related to human rights and working practices, needed for a supplier relationship to be sustainable. The standards apply to all entities in the DZ BANK Group. Since 2010, we have also been using a sustainability agreement that requires all suppliers to comply with DZ BANK’s minimum standards, the principles of the United Nations Global Compact, and the requirements of the International Labour Organization. In 2016, we did not identify any actual or potential adverse impacts of a significant nature on the environment, human rights, or society, or in regard to working practices.
Proactive supplier management provides the basis for DZ BANK’s sustainable procurement operations. For example, we classify suppliers according to their sustainability relevance for DZ BANK. Since the beginning of 2013, suppliers that are considered to be particularly relevant to sustainability because of the volume of orders we place with them, their specific activity, or country-specific risks have been asked more searching questions about the sustainability of their core business. These cover certification, approaches aimed at minimizing pollution, and other areas. We take reasonable steps to verify whether and to what extent our suppliers are meeting the sustainability obligations that are stipulated in their contracts. We base any further action to be taken on the data we collect. Since 2013, all of our suppliers’ sustainability performance data has been stored in a database. A breach of the environmental and social standards stipulated in the sustainability agreement may ultimately lead to a supplier being suspended.