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Sustainable supply chains

More sustainability in supply chains – worldwide

Dr. Arne Flemming

At Bosch, purchasing and logistics work hand in hand for resilient and sustainable supply chains that contribute to a high level of product quality, climate action, and social standards.

Dr. Arne Flemming, head of Supply Chain Management

Designing supply chains responsibly

Together with our business partners, we want to find answers to the global social and environmental challenges of our time. At the heart of these efforts is all stakeholders’ common understanding of sustainability as enshrined in the “Basic principles of social responsibility at Bosch” and the ten basic principles of the United Nations’ Global Compact. On this basis, we require that our suppliers comply with the generally applicable labor standards as laid down in the Fundamental Principles of the International Labour Organization (ILO). This includes, among other things, renouncing forced labor and child labor, not permitting any form of discrimination, guaranteeing occupational health and safety, creating fair working conditions, and ensuring freedom of association. We also require our suppliers to protect the environment and conserve resources – and to likewise pass our requirements on to their own suppliers. Sustainability aspects are taken into account in supply chain management via a three-stage process:

Requirements

We communicate our requirements to our suppliers via our Terms and Conditions of Purchase, the Code of Conduct for Business Partners, and appropriate contractual clauses.

 

More details for business partners

Assessment

To assess compliance with these requirements, we use systematic methods. Of central importance in this regard are the CSR quick scans and CSR drill-deep assessments.

Further development

By further developing our suppliers’ sustainability performance, we aim to achieve effective and sustainable changes.

 

We regularly honor outstanding achievements with the Bosch Global Supplier Award.

Consistently respecting human rights – worldwide and in all supply chains

In addition to climate action and protecting the environment, we also focus on social aspects in the sustainable design of our supply chains. In particular, respect for human rights is our highest priority.

Description of the risk minimization process: 15 high-risk raw materials (cobalt, rare earths, 3TG, aluminum, lead, graphics, lithium, natural rubber, copper, manganese, nickel, platinum) undergo a risk minimization process: 1. Identification of affected suppliers, 2. Acceptance of the Code of Conduct for Business Partners by suppliers, 3. Creating transparency about risks in the supply chain, 4. Identifying the main risks, 5. Initiating measures.
Risk minimization process

Given the particularly high risk associated with the field of raw materials extraction from an environmental and social perspective, we have set this as one of our initial priorities and developed a cross-company concept to mitigate the risks arising from the procurement of products and semifinished products which, according to our analyses, contain particularly high-risk raw materials. To this end, risk minimization programs will be implemented over the next three years following a defined scheme, which is run through step-by-step for the respective raw materials. First activities were already implemented.

Back in 2019, we drew up a Conflict Raw Materials Policy that describes our approach to the conflict minerals cassiterite (for tin), coltan (for tantalum), tungsten, and gold. Since 2021, this has been anchored in both the Bosch Terms and Conditions of Purchase and the agreement on quality and corporate social responsibility, making it contractually binding for our suppliers. In addition, Bosch has been participating in Conflict Minerals Reporting since 2014. In 2021, it prepared its first illustrative cobalt report in accordance with the Responsible Minerals Initiative (RMI). Bosch is also active in the “Automotive industry dialogue: Respect for human rights along supply and value chains” of the German Federal Ministry of Labor and Social Affairs. We also comply with other country-specific requirements, such as the Modern Slavery Act in the United Kingdom and the French “Loi de Vigilance”, which aims to ensure that companies comply with human rights due diligence.

Read more on the Modern Slavery Statement

Read more on the “Loi de Vigilance” report

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