Our procurement policies are in place to manage our supply chain and are described in full earlier (see Compliance at LEDVANCE). These policies ensure that important areas are carefully monitored and managed along the LEDVANCE supply chain. They include:

• Control and restriction of the use of hazardous substances in our products.
• Striving to minimize local and global pollution, to protect water, soil and air as well as manage conflict minerals responsibly.
• Striving to minimize the environmental impacts of our products from cradle to grave.
• Focusing on energy-efficient product development, repairability and recyclability to achieve zero-landfill in the future.

We use a blend of distribution between our own operations and our supply chain throughout the product life cycle. Raw materials and production, packaging, transport as well as end-of-life and recycling are performed by external partners, while distribution is performed through both our own operations and our supply chain in the form of our own distribution centers and centers by external providers

At LEDVANCE, we believe that shared rules and agreements in our business partnership can lead to ecological, social and economic improvements for society. Therefore, our suppliers are bound by the Code of Conduct for LEDVANCE Suppliers, which defines the basic requirements placed on them regarding their responsibilities towards their stakeholders and the environment. Every supplier must agree to uphold basic requirements regarding legal compliance, the prohibition of corruption and bribery, respect for basic human rights of employees, the prohibition of child labor, health and safety of employees and environmental protection, also along their supply chain. As part of our supplier assessment, LEDVANCE monitors the number of suppliers signing the Code of Conduct for LEDVANCE Suppliers and follows up with them systematically. This is intended to create a mutually beneficial situation for LEDVANCE and its suppliers by working together and improving any possible sustainability issues jointly. If a supplier does not sign the Code of Conduct for LEDVANCE Suppliers, a defined process is followed which includes initial communication with the supplier. In cases where suppliers are not willing to sign, escalation may occur, including a legal assessment and possibly the termination of business relations

Supplier assessments form an important part of LEDVANCE’s risk-based supply chain management. Apart from the standards that suppliers must sign, LEDVANCE also assesses the sustainability performance of its suppliers, both before and during the partnership. This is carried out via a Supplier Rating Method and a Corporate Responsibility Self-Assessment (CRSA) if required. When there is a delay in getting external certified reports on the social and environmental performance of a supplier, self-assessment reports are considered. Our CRSA is an extensive questionnaire on social, environmental and governance aspects. Based on the results of the risk assessment, LEDVANCE conducts on-site audits of suppliers with high-risk profiles to control compliance with our guidelines. This includes a review of working conditions, including labor contracts, working hours and safety considerations. We are currently developing a digital tool to manage supplier relationships, including risk and performance assessment, as part of our company-wide digital transformation project.