We apply the following criteria when assessing the CSR (corporate social responsibility) performance of our suppliers:
- Valid EcoVadis assessment or TfS audit
- Qualitative result of the assessment (score) or the audit (findings)
The partial result for “Sustainability” in our annual supplier rating depends on
- Whether the supplier cooperates with our request for a TfS rating, and
- The actual result of the TfS rating (EcoVadis assessment and/or TfS audit).
At year-end 2020, 81 percent of our key suppliers were in possession of a valid TfS audit or assessment. This corresponds to 94 percent of the volume procured from key suppliers. There were over 900 valid assessments in the WACKER supplier pool at the end of 2020. More than 500 initial or re-assessments had been held, with improvements recorded in 60 percent of cases.
In EcoVadis assessments, around 80 percent of key suppliers scored at least 45 points out of a maximum 100 points. The average score was 53 points.
Our goal is for all of our key suppliers to score at least 45 out of a possible 100 points in their assessments. In our audits, we aim for zero serious deviations from target specifications (critical or major findings) among our suppliers. Suppliers that score below average in the EcoVadis assessment are targeted for audits. We expect our suppliers to rectify any major deviations found during audits. Consistently poor results and lack of cooperation have consequences, and may ultimately lead to business relations being terminated.
Platinum EcoVadis Recognition Level
TfS membership requires WACKER to assess the sustainability performance of its own suppliers and to undergo TfS assessments in its own role as supplier. For 2020, we achieved a Platinum EcoVadis recognition level. The company’s rating rose from 72 to 75 points. It now ranks among the top 1% of the highest-scoring companies.
Social Responsibility Audits
We subject ourselves to social responsibility audits because, in addition to emphasizing sustainable resource management, we also place increasing value on ethical and social business practices. Proceeding according to the SMETA (Sedex Members’ Ethical Trade Audit) or TfS process, auditors investigate issues such as working conditions, occupational health and safety, environmental management and corporate ethics. We make the results of such audits available to interested customers via TfS or in the Sedex (Supplier Ethical Data Exchange) database, an online platform disclosing a company’s social- and ethics-related processes throughout the supply chain.