S2
WORKERS IN THE VALUE CHAIN
value chain. The latter include employees re- sponsible for transporting products and any intermediaries involved before the products are delivered to the consumer or end-user. In some cases, the Zumtobel Group works with suppliers in countries that have an in- creased risk of child or forced labour. China can be considered a potential example of a country with a higher risk profile. To identify corresponding risks, the Zum- tobel Group employs abstract supplier risk assessments carried out by IntegrityNext, an external specialist platform. These assessments provide an initial risk-based evaluation of the countries and sectors in which workers are potentially exposed to an increased risk of human rights violations. IntegrityNext is a global provider of sustai- nability services and uses its own standard- ised algorithm for abstract risk analysis. For example, inadequate occupational safety regulations and a lack of workers’ represen- tatives result in certain countries being more at risk. These include countries such as Turkey and China. See ‘Taking action [S2-4]’ for more information.
Business relationships with the Zumtobel Group are based on a systematic supplier evaluation and approval process (supplier onboarding). Before any business rela- tionship is entered into with the Zumtobel Group, each potential supplier is required to sign the Code of Conduct for Business Partners. Once the code has been signed, economic factors are screened based on the supplier’s self-disclosure and a detailed assessment of the sustainability perfor- mance of potential new suppliers by EcoVa- dis (supplier rating, preferably for suppliers with strategic relevance) or IntegrityNext (supplier self-disclosure, preferably for sup- pliers with less strategic relevance). In addition, the onboarding process also requires suppliers to agree to commercial and quality-related contracts at a later date and ends with an audit of various focal to- pics relating to various areas such as quality and sustainability. A supplier’s agreement to uphold all Zumtobel Group guidelines set forth in the Code of Conduct for Busi- ness Partners, the aim of which is to take human rights and clearly defined social and environmental standards into account, is an essential prerequisite for entering into a supply relationship and forms the basis of a lasting partnership. The Zumtobel Group’s Code of Conduct for Business Partners addresses due diligence topics. The requirements and minimum standards regarding human rights risks set out therein are based on national legislation as well as on the principles and parameters for upholding due diligence throughout the value chain. These are based on the Inter- national Labour Organisation’s (ILO) core la- bour standards and relevant UN standards. Occupational health and safety are key pillars of the Code of Conduct for Business Partners. The policies have been appro- ved by the Management Board, and their consistent application among all suppliers is ensured by Global Purchasing management as part of the supplier re-approval process.
Policies related to value chain workers [S2-1]
All suppliers, manufacturers and dealers (as well as customers) are required to comply with the Zumtobel Group’s globally applica- ble Code of Conduct for Business Partners and commit to respecting human rights (including labour rights) and protecting value chain workers in order to work with the Group. This Code of Conduct for Business Partners reaffirms the Zumtobel Group’s commitment to combating human trafficking in all its forms throughout the entire value chain. In addition, Zumtobel’s Declaration of Principles on Human Rights underlines the Group’s commitment to respecting and promoting human rights in all of its business activities. Both policies were developed to ensure compliance with all due diligence obligations.
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