Driving the sustainable energy transition across our supply chain

Madrid / 9 August 2022

Sustainability is at the heart of our business and we encourage the same core principles within our supply chains. Our commitment to upholding human rights and protecting the environment forms the basis of our business decisions, and we expect our suppliers to share this common goal. 

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Most of the impact of our business activities is seen in our upstream supply chain. Therefore, we have enhanced our supplier due diligence program and introduced an Environmental, Social and Governance (ESG) Risk and Performance Management Framework*. This ensures that we not only comply with due diligence requirements, but also monitor our suppliers’ ESG performance and compliance to our Code of Conduct, mitigate risks, and accelerate sustainability improvements throughout our supply chain.

Under the scope of our Framework, we invite our suppliers to join our due diligence journey. The supplier journey starts with a supplier risk screening and an ESG assessment by our partners, IntegrityNext and EcoVadis on their respective platforms. When necessary, we will further engage with corrective action plans or perform an onsite sustainability audit.

Partnership for Sustainability

As part of our #ActionsSpeakLouder campaign, we talked to Nicole Sherwin, SVP of Customer Success at EcoVadis, and Nick Heine, Head of Sustainability & Compliance and Co-founder of IntegrityNext, to elaborate on our partnership to improve supply chain transparency.

The purpose of EcoVadis is to provide the world's most trusted business sustainability ratings, assessing social, ethical, and environmental impacts.

 As Nicole Sherwin tells us, sustainability is no longer an “extra” – it is necessary for any business to succeed. IntegrityNext is on a similar mission to make global supply chains more sustainable - as Nick Heine explains, they know how challenging it can be to implement sustainability in complex supply chains, so they have set out to enable companies to assess, improve and report on material ESG issues in the supply chain.   

Siemens Gamesa uses the IntegrityNext platform for supplier self-assessment to screen their performance based on a minimum set of ESG questions. The seven questionnaires cover topics such as Human Rights & Labor, and Environmental Protection. EcoVadis provides us with a data-based assessment of management system indicators and sustainability criteria, which is then validated by a high-level team of analysts. EcoVadis then creates actionable scorecards and reliable data on the sustainability performance of our suppliers and works closely with our procurement team to continuously improve supplier performance.  

For EcoVadis, sustainability is a continuous improvement journey - there’s no “one size fits all” solution. For companies seeking to improve their supply chain sustainability, Nicole recommends educating themselves on best practices, assessing current sustainability risks and opportunities, benchmarking their organization against the industry, and setting a corrective action plan to improve. This involves working with trading partners and customers to increase suppliers’ awareness and knowledge and inspire sustainability best practices. In addition, Nick emphasizes the importance of looking at the bigger picture rather than focusing only on the top spend or strategic suppliers, as risks often lie with the smaller, tail-end suppliers.  
Call for action

Based on her experience with due diligence programs, Nicole highlights that there is no single definition of success. The overall goal should be to improve, not to cross a finish line. Embracing a sustainable supply chain is not just good for the planet - as Nick tells us, it can provide opportunities to increase competitiveness and win new business, drive innovation and growth, gain trust, attract talent, and improve investor relations. It also strengthens organizational resilience: sustainable companies and supply chains are better equipped for the future, especially with regards to our changing climate.  

All in all, with our framework and partnership we look forward to continuously improving our sustainability performance. We aim to work with best-in-class suppliers to accelerate our performance and best-in-progress suppliers to accelerate our impact. We are calling all our business partners to join us in driving the sustainable energy transition. Actions speak louder than words.

The ESG factors are used when measuring the sustainability and ethical impact of countries, organizations or investments.


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