The BLANC & FISCHER-Group had already turned its attentions to the supply chain at an early stage and established an appropriate framework for it. For example, with a Code of Conduct for suppliers or the “supplier onboarding” process, which, in addition to sustainability, also considers aspects such as certifications, quality, logistics, and costs.
The Supply Chain Act, which came into force on January 1, 2023, created further momentum. This obliges German companies with more than 3,000 employees to observe special due diligence and reporting obligations. These specifically relate to compliance with human and labor rights as well as environmental standards in the supply chain—for example, protection against child labor or the right to fair wages.
The introduction of the Supply Chain Compliance Management System was an exciting process. The Supply Chain Act (Lieferkettensorgfaltspflichtengesetz, or Lieferkettengesetz for short) initially left many questions unanswered. Nevertheless, we started early and with an interdisciplinary approach. And it paid off!
From theory to practice
Global value-added chains and supply relationships are complex by nature; the transparency task set for the management holding company and the associated business groups was therefore substantial. An interdisciplinary team of experts joined forces to drive the topic of supply chains forward with a clear headstart over the introduction of the law. The team included colleagues from the Compliance Organization and Purchasing.
In addition to content-related preparations, such as the adoption of a “Declaration of Principles for Social Responsibility and Human Rights in the Supply Chain” by the management board, the establishment of the “Supply Chain Compliance Management System” was a core task. In this context, the team used a comprehensive risk analysis to look both internally and externally. On the test bench: the sites, sales, and all direct suppliers. In addition to supplier-specific risks, product- and country-related risks were also considered. “That was a tremendous feat,” says Marvin Zimbelmann, Compliance Coordinator of the E.G.O.-Group, looking back. “But it was the only way we could establish transparency and initiate the appropriate prevention and remedial actions based on this. Depending on the risk assessment, these may include extensive reporting obligations, on-site audits, or qualified self-assessments by the suppliers.” In the case of the latter, for example, the details of industrial safety, CO₂ footprint, or the company’s own supply chain responsibility are examined.
So far, the evaluations show that the majority of suppliers have a low risk level. For the few suppliers with higher risk assessments, this is usually due to the fact that the countries in which the companies are based have different standards in terms of social responsibility and human rights.
Other changes include the further development of the whistleblower system. This system, which was initially set up for compliance cases, now also makes it possible to confidentially and anonymously point out human rights and environmental risks as well as any breaches of duty in the supply chain of the BLANC & FISCHER Family Holding or in the business groups.
The course has been set— what happens next?
Sustainability in the supply chain is an important aspect for the BLANC & FISCHER Family Holding and its business groups. In accordance with GRI guidelines 308 and 414, it therefore checks and assesses its suppliers based on environmental and social criteria.
The checking and evaluation process for existing suppliers began in 2021 and was extended to new suppliers in the reporting year. One relevant selection criterion for supplier checking is the amount of purchasing volume, applying the Pareto principle, which states that 80 % of the result can be achieved with 20 % of the total effort. All supplier data and documents requested are gathered and evaluated on a platform. GRI 308 “Supplier environmental assessment” shows key figures relating to suppliers and their environmental behavior. The link between suppliers and their social behavior is presented under GRI 414 “Supplier social assessment”.
The following diagram shows the purchasing volumes for 2021 and 2022.
Purchasing volume assessed according to environmental and social aspects
GRI 308
Environmental assessment of suppliers
GRI 308-1 a
New suppliers Screened according to environmental criteria
Figures for 2022
In 2022, 9 % of new suppliers were screened according to environmental criteria.
GRI 308-2
Negative environmental impacts in the supply chain and action taken
The organization must disclose the following information:
a. Number of suppliers screened for environmental impact.
b. Number of suppliers identified as having significant actual and potential negative environmental impacts.
Figures for 2022
GRI 414
Supplier evaluation according to social criteria
GRI 414-1 a
New suppliers screened according to social criteria
The reporting organization must disclose the following information:
a. Percentage of new suppliers assessed according to social criteria.
Figures for 2022
GRI 414-2
Negative social impacts in the supply chain and action taken
The reporting organization must disclose the following information:
a. Number of suppliers assessed for social impact.
b. Number of suppliers identified as having significant actual and potential negative social impacts.
Figures for 2022
Management boards moving closer together
Shorter distances, closer and leaner coordination, faster decisions: the new management board structure of the BLANC & FISCHER Family Holding brought to life in summer 2022 follows a clear idea.
Standardization – why?
Standards or the application of these are often called into question. But the employees of the BLANC & FISCHER Family Holding companies know what the standards are and they apply selected standards.
