Sustainability in the supply chain

In the context of our global business activities, we are committed to corporate social responsibility. We source raw materials, goods and services from suppliers all over the world so that we can offer innovative products and services that will secure the long-term success of our customers. Responsible corporate management that focuses on long-term value creation is foundational for this. This is why we involve our suppliers in our sustainability strategy directly. In our procurement activities, besides considering process-related, economical and technical criteria, we also take into account social and ecological aspects such as human rights, working conditions, environmental protection and the prevention of corruption.

In the tension between product and process, market and region, we place high importance on reliability, innovation and sustainability when choosing and evaluating suppliers. DENIOS expects its suppliers to conduct their business activities in a way that adheres to the applicable national laws, the principles of the United Nations Global Compact the DENIOS Policy Guide and the DENIOS Supplier Code of Conduct. Another aspect of this is the expectation that our business partners and their affiliated companies will introduce suitable processes at their businesses to ensure that the applicable laws are adhered to and promote continuous improvements in relation to the principles and requirements of the DENIOS Supplier Code of Conduct.

According to the figures from 31 December 2023, we have a total of 139 A and B suppliers listed in our Catalogue Products business unit, with a purchasing volume of 29,010,347 euros in 2023. A total of 60 of these suppliers have signed and returned the Code of Conduct, corresponding to 45.4% or €13,162,130 of the supplier volume.

In our Engineered Solutions business unit, we have 47 A and B suppliers, with a total purchase volume of EUR 12,386,379 in 2023. A total of 39 suppliers have signed the Code of Conduct, and a reminder has been sent to the eight others. The contracts signed correspond to a volume of EUR 11,274,188, or 91%.

Since its introduction, the Supplier Code of Conduct has been presented for signing before each new supplier is listed.

There were no significant changes in the supply chain during the reporting period.

We have long-standing business relationships with most of our suppliers for our Catalogue Products and Engineered Solutions business units. In order to minimise transport routes and strengthen the local economy, we prioritise the use of suppliers in the local areas close to our sites.

New suppliers are still selected and qualified according to defined processes, with close collaboration between Product Management and Purchasing, Research and Development, Quality Management and Logistics. All of our framework agreements with our external suppliers contain corresponding specifications on matters such as energy and environmental topics with which the contractual partners must agree. In case of a violation, we always cease working with the contractual partner in question. Our supplier and framework agreements are regularly reviewed for necessary amendments to sustainability and social criteria and adjusted accordingly. Workers' rights are both recognised and upheld by both our overseas companies and our suppliers. Thanks to our extended supplier agreements and code of conduct, we can rule out any risk of child labour on both sides.

Anti-corruption measures have always and will always be practised at DENIOS – they feature in the general code of conduct.

In the interest of practising business with integrity, this code of conduct forbids the acceptance of any gift that could potentially influence a decision. No DENIOS employee may use his or her official position to demand or accept unauthorised benefits. In turn, when we give promotional gifts to the employees of our business partners, we choose gifts that ensure that no incorrectness is perceived on the part of the recipient. In the case of civil servants and other public officials, we refrain from giving gifts altogether. In 2022, work began on revising the organisational manual; the process was not completed in the reporting period and is still ongoing. We will also integrate the ten principles of the Global Compact and the contents of our policy guide in the report. There were no confirmed cases of corruption within the DENIOS Group or at any of the four individual organisations in focus during the reporting period.