Responsible procurement

Working with a complex supplier network

In 2022, HUBER+SUHNER purchased more than 22 000 different items from roughly 1 600 active production material suppliers located in 46 sourcing countries. Production materials represent approximately 70 % of the total purchasing volume, with two-thirds being components or semi-finished goods and one-third raw materials such as copper or chemicals.

The most important sourcing regions in terms of purchasing volumes are Western Europe, Central Europe, and Northern Asia.

Focus on responsible procurement

At HUBER+SUHNER, over 50 % of turnover is used for Procurement. Therefore, the company aims to make certain that production materials are sourced only from qualified suppliers, ensuring high environmental and social standards throughout our operations to minimise adverse effects on the environment and society. There is increasing governmental pressure, including the German Supply Chain Due Diligence Act which came into force on 1 January 2023, and the Ordinance on Due Diligence and Transparency in Relation to Minerals and Metall from Conflict-Affected Areas and Child Labour (DDTrO) entered into force on 1 January 2022.

In Switzerland through the DDTrO, and in Europe with the EU Supply Chain Law, companies are now legally required to know their supply chain footprints and assess their suppliers with regard to environmental, social and governance (ESG) risks. As of 1 January 2023, companies must introduce comprehensive due diligence measures and report any risks with regards to:

• Human rights and labour practices
• Occupational health and safety
• Responsible sourcing of minerals
• Environmental protection and climate change mitigation
• Fair operating practices.

Stepping up measures for responsible procurement

HUBER+SUHNER appreciates long-standing and stable supplier relationships as key to its business success. This has been further underlined by the global Covid-19 pandemic. We aim to procure according to the “regional for regional” model to strengthen local supplier relationships and ensure short supply chain routes whenever possible.

The company requires its suppliers to acknowledge the HUBERS+SUHNER Code of responsible business conduct, which can be found on the company’s website. Additionally, regular audits are done for strategic suppliers and since 2021, a set of sustainability-related questions were included.

In September 2022, HUBER+SUHNER introduced a specific Supplier Code of Conduct in English, Chinese, French, German, Polish, and Spanish. The Supplier Code of Conduct is an integral part of the agreement between a supplier and HUBER+SUHNER and applies to all critical production material suppliers worldwide. Furthermore, in 2022, we started onboarding 150 suppliers to our ESG due diligence platform IntegrityNext with the objective of assessing 75 % of our production material spend through the platform by the end of 2023.

The Procurement team also updated its Procurement Policy, adding information with regard to corporate responsibility and material compliance, and defining what is expected from each supplier in those areas.

Conflict minerals

In its production, HUBER+SUHNER processes the conflict minerals tin and gold. In this regard, the company is mapping its supply chain using the Conflict Minerals Reporting Template (CMRT) of the Responsible Minerals Initiative. The most recent version of the CMRT is publicly available on the HUBER+SUHNER website.