CHT Sustainability Report 2020

Ecology

Supplier management

Demanding and promoting sustainability

It is our aim to ensure competitive advantages for our Group by a professional purchase organization. Moreover, our suppliers are an important part of our value chain. Together with them we want to increase our commitment to sustainability and minimize the risks. We focus on reliable suppliers providing us with raw materials and equipment of high quality at competitive prices. Our goal is to make our suppliers’ contribution to sustainability transparent by 2021 and to create a uniform, global program for responsible procurement and for improving environmental and social standards among suppliers.

Ecovadis Sustainability Audit 2020 determined a score of 60 for the sustainable procurement management of CHT.

CHT’s evaluation process is simplified by a globally uniform questionnaire.

In 2020, the sites in the USA were fully integrated into the supplier evaluation management system. This extends the analysis to a total of 17 relevant CHT companies (with production facilities). In this context, a total of 490 suppliers were evaluated. They cover a purchasing volume for raw materials of approximately 275 million EUR and thus the majority of the CHT Group’s total raw material requirements.

In 2020, 351 suppliers were assessed as sustainable according to the CHT criteria, which represents an increase of 8% compared to the previous year. We support suppliers where we identify a need for improvement to further develop their sustainability efforts. We conduct a renewed review after a defined timeframe.

Suppliers are informed that CHT reserves the right to terminate the cooperation in the event of particularly serious deviations and if no improvement is identified. In 2020, this was not necessary in any case.

The current sustainability rate was 90% at the end of 2020. This exceeded the average target of 88% set for 2020 for all companies. In addition, the suppliers of keim additec surface GmbH (acquisition at the end of 2019) were also evaluated and initial measures were launched. The full-scale review and Group-wide integration will take place in 2021.

In the case of our suppliers in the services and MRO area, in addition to the above-mentioned performance criteria for quality management and requirements in the EHS area, the supplier’s location is also taken into account. Local suppliers are preferred for reasons of shorter transport distances (reduction of emissions).

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