S2
WORKERS IN THE VALUE CHAIN
Targets related to workers in the value chain [S2-5]
Actions related to workers in the value chain [S2-4]
S2-5, T1 | Supplier management: The Zumto- bel Group aims to systematically improve its suppliers’ due diligence performance, with a spotlight on human rights. The focus is on improving the performance of 35 suppliers which have been identified as underperfor- mers in terms of human rights on the basis of external assessments by the 2026/27 financial year.
As an international group, the Zumtobel Group has a complex supply chain, especi- ally with regard to the procurement policy of relying on various raw materials suppliers. Nevertheless, efforts are being made to make the supply chain as regional as possib- le and to increasingly push the ‘local 4 local’ procurement concept at the production sites. The Zumtobel Group has taken mul- tiple actions to prevent potential negative impacts on the workers in the upstream value chain. These actions include risk assessments of the sectors in which value chain workers work, performance monito- ring of suppliers and tracking adherence to the Zumtobel Group’s sustainable procure- ment policies.
Conflict Minerals
Since early 2021, companies headquartered in the EU have been required by law to conduct due diligence when procuring conflict minerals. The European Commission calls on all com- panies covered by the Regulation to comply with due diligence obligations for tin, tantalum, tungsten and gold in their supply chains. As part of the conflict minerals programme, the Zum- tobel Group has also implemented measures in its supply chain to ensure that these products do not directly or indirectly finance transactions with the Democratic Republic of the Congo (DRC). The Zumtobel Group documents its due diligence based on the report template issued by the Responsible Minerals Initiative (RMI) and discloses its due diligence in the supply chain for smelting works und refineries as required by the Responsible Minerals Assurance Process (RMAP). The OECD guideline ‘Due Diligence Guidance for Responsible Supply Chains from Conflic- ted-Affected and High-Risk Areas’ is the most important reference benchmark for the current RMAP standards. It requires all upstream companies to publish annual reports. Smelters and refineries are considered upstream companies within the meaning of the OECD guidelines and must meet the OECD Level 5 reporting requirements for upstream companies in order to conform to RMAP standards. The reports are prepared and updated externally by ValueStream Europe GmbH, which contributes its expertise in material compliance. The conflict minerals re- porting template (CMRT) and the extended minerals reporting template (EMRT) for the Lighting Segment and the Components Segment are available for download on the Zumtobel Group’s website under the ‘Sustainability’ menu item. This action will be continued moving forward.
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