Supply Chain Management
Taking chances, minimizing risks
Sustainability is a central component of LEONI's corporate strategy. As part of our ReWire sustainability program, we also attach great importance to responsible procurement of production and non-production materials. Ensuring good working and living conditions, respecting internationally recognized human rights and protecting the environment are of great importance to us. This also applies along our entire supply chain.
Information on sustainable supply chain management
We expect our business partners to comply with their due diligence obligations in order to likewise ensure that our business partner network is also transparent and to identify and minimize potential risks at an early stage. This requires close cooperation with our business partners and compliance with the due diligence obligations associated with the business relationship as part of our sustainability standards.
We have systematically anchored in our sustainable supply chain management processes how we identify risks at our direct suppliers and on an ad hoc basis for our indirect suppliers, and how we address these with preventive and remedial measures.
Abstract risk identification via tool by LEONI
Self-assessment of all newly created business partners
Code of Conduct for Business Partners
Annual reporting of sustainability efforts (e.g. CO2 reduction, recycling rate)
Contractual assurances (toleration of audits, disclosure of information, etc.)
Specific risk identification (e.g. via SAQ)
Monitoring & continuous surveillance
(Mandatory) e-learning
Measures plans (e.g. corrective measures plans, indication of recycling rate, etc.)
Obliging Business Partners
By means of its clauses in the purchasing conditions, LEONI obligates its business partners to comply with the principles of the Code of Conduct for Business Partners, which is based, among other things, on external frameworks and requirements such as the UN Guiding Principles on Business and Human Rights, International Human Rights Charter, the Principles of the UN Global Compact, the Principles of the International Labour Organization, OECD Due Diligence Guidelines for Responsible Business Conduct and the National Action Plan of the German Federal Government and the Act on Corporate Due Diligence Obligations in Supply Chains derived from it.
Recognition of the principles
Our Code of Conduct for Business Partners describes the principles and expectations regarding compliance, human rights and the environment along the entire supply chain. We therefore expect binding recognition of the principles of the Code of Conduct for Business Partners.
Knowledge sharing for Business Partners
In addition, we provide a free-of charge e-learning on the principles of the Code of Conduct for Business Partners to convey an understanding of our key principles to all business partners. For certain business partners, the completion of the e-learning is mandatory.
Contractual assurances on implementation in the supply chain and on audit rights
LEONI expects the contractual inclusion of our principles, which are anchored in the LEONI Code of Conduct for Business Partners, and the assurance that these principles are adhered to. These principles should also be addressed in the wider supply chain. In addition, we expect the approval of a review of compliance with these principles through information and on-site audits of business partners with identified high risk or on an ad hoc basis. The aim is to develop and implement sustainability in the supply chain jointly and in cooperation.
Risk management in the supply chain
LEONI uses various approaches to assess sustainability risks and their impact in the supplier network.
LEONI assesses its direct business partners on the basis of abstract risks using a recognized risk mapping tool. This tool draws on different country- and commodity group-specific risk databases. In addition, the risk filter is based on the business partner's annual sales with LEONI. On this basis, we assess potential risks on the basis of probability of occurrence, severity as well as our possible causation contribution measured in terms of purchasing volume.
Based on the abstract risk assessments, LEONI has defined the minimum requirements for business partner locations. Direct business partners are obliged to provide information about their sustainability performance and the preventive and remedial measures in place at their sites. If necessary, this also applies to indirect business partners. The identification and verification of compliance with these services and measures is carried out at LEONI by means of an online sustainability questionnaire from Drive Sustainability (delivered via the SUPPLIERASSURANCE platform), in the respective current form (currently SAQ 5.0 - Drive Sustainability).
Our business partners can find more information about this here (SUPPLIERASSURANCE) and also in the invitation email from SUPPLIERASSURANCE for LEONI's SAQ to answer the sustainability questionnaire.
If you have any queries, please contact:
Automotive Cable Solutions Division: sustainability-acs@leoni.com
Wiring Systems Division: supplier_sustainability@leoni.com
If the results of the abstract and concrete risk analysis, further external sources of information and / or the response to the SAQ questionnaire indicate that the sustainability performance of the respective business partners is not sufficient or generally indicate risks, they are assessed as risk business partners of LEONI. In this case, they are required to comply with the corresponding due diligence obligations within an appropriate timeframe by means of sustainable measures for improvement or remediation. The plan of action must be coordinated with LEONI in terms of content and time and recorded in writing. Violation of the principles and non-compliance with the due diligence obligations LEONI reserves the right to unilaterally terminate the business relationship.
We reserve the right to conduct additional checks at the supplier location for business partners where we have identified a particularly high risk.
For the continuous monitoring of our business partners and before commissioning new business partners, LEONI carries out an Adverse Media Screening for database research to detect possible sustainability violations among our business partners.
Indications of possible misconduct are systematically followed up. For this purpose, LEONI has set up a complaints procedure - including the possibility to report human rights violations and environment-related violations also with regard to suppliers (also) anonymously:
The evaluation of new business partners according to sustainability criteria is anchored in the processes for creating and selecting new business partners. For this purpose, questionnaires have to be completed that include sustainability topics. The results of these questionnaires are taken into account when selecting a potential business partner. The questionnaires include questions on sustainability targets, compliance with social and ethical standards, environmental and occupational health and safety issues, and environment-related topics.
To address the identified risks among direct and also indirect business partners, LEONI develops raw material-specific sustainability criteria.
Our focus is on responsible sourcing of all materials used in our manufacturing processes. We also take a risk-based approach here and strive to prioritize raw material supply chains with a high risk of human rights violations.
LEONI does not source copper ore directly from the mine for its value creation, but is aware of the origin of its raw materials and also of the issue of conflict minerals.
As the raw material copper is an essential component in many of LEONI's cable products, all business partners from whom LEONI procures copper are defined as risk business partners at LEONI and examined more closely as part of the specific risk analysis (see above). LEONI asks these and other business partners to disclose their tier-n suppliers. If individual suppliers cannot be disclosed, this must be justified by the business partner.
In addition, we actively support the industry initiative "The Copper Mark" as a partner. Copper Mark is an initiative that involves a review of the sustainability standards of copper production sites including mines, smelters and refineries. LEONI's goal is to communicate Copper Mark efforts throughout its supply chain and to rely primarily on Copper Mark certified/supporting or otherwise demonstrating their sustainability efforts to copper suppliers.
