Disclosure 414-1: New suppliers that were screened using social criteria

Sika also assumes responsibility for the supply chain. The Supplier Code of Conduct has been binding on all new suppliers since 2015 and is gradually being extended to existing suppliers. By the end of 2020, the agreement had been endorsed by a total of 9,210 suppliers (up by 10% on 2019) covering around 76% of our direct material suppliers. Sika thereby ensures that suppliers are informed of Sika’s ethical, environmental, and social expectations and guidelines and that they carry out their processes in compliance with the Sika sustainability criteria.

Sika’s Group-wide process maps out the main sustainability principles (economic, social, and ecological) for supplier qualification and evaluation. The multistage supplier evaluation process has three central elements: It starts with the commitment to comply with the Supplier Code of Conduct and the completion of a self-assessment. In unclear cases, the purchasing department will follow up with sustainability audits before concluding a supply contract. This process is currently under review with a look to additionally add TfS evaluations as a fourth pillar requirement to the supplier qualification and evaluation process at Sika.

Documentation generated during supplier qualification is transparently recorded and stored on a dedicated platform. The system enables buyers to inspect suppliers’ qualifications and improve them in their countries as necessary.
Sika continued the implementation of its worldwide process that maps out the main sustainability principles for vendor qualification and evaluation (multi-stage vendor qualification process). Procurement employees in the company are constantly trained using a systematic supplier audit method. These procedures are designed to ensure compliance with international labour standards and prescribed quality, environment, safety, and health criteria.

Sika’s process involves collecting evidence and documents on a globally available platform. However, as Sika applies a risk-based approach, companies reporting according to GRI on human rights criteria, and signatories of the UN Global Compact and the OECD Guidelines for multinational companies will not necessarily be screened.