MAN commits suppliers to sustainability

• MAN requires suppliers to comply with binding compliance and sustainability standards
• Procurement only if standards are met
• 1,500 suppliers have already been certified

"Sustainability is not only a central future field at MAN and a guarantee for long-term corporate success, but also part of our social responsibility," says Holger Mandel, Executive Board member responsible for procurement at MAN Truck & Bus and also on the Executive Board for sustainability, formu-lating the motivation for the newly introduced S rating (Sustainability Rating). "And our business partners make a considerable contribution to MAN’s future viability, which is why we have clear expectations of our suppliers to commit themselves even more strongly and without compromise to the goals of sus-tainability in the future," Mandel continues. The new rules will be imple-mented in November as a binding criterion for MAN Truck & Bus and will evaluate suppliers with regard to their sustainability.

In terms of content, the rating covers two areas: On the one hand, compli-ance and, on the other, environmental and social issues. As early as Novem-ber 2019, evaluation criteria that deal with corruption risks as part of a Busi-ness Partner Due Diligence (BPDD) process were successfully imple-mented. Now the subject area of environment and social affairs is being added as a second pillar. In the case of identified risks, on-site checks sup-plement an assessment of suppliers on the basis of a binding self-disclosure by the industry initiative Drive Sustainability. In addition, if there are suspicions of violations of sustainability requirements by business partners, for example following an external report, a further review process is initiated.

With the introduction of the sustainability rating, MAN Truck & Bus is implementing an important component of the Corporate Responsibility Strategy 2025+ of the entire VW Group. In the course of the extensive implementation process at its business partners, MAN has already qualified more than 1,500 suppliers and thus secured procurement with regard to the criteria mentioned. If a supplier does not meet the S-rating requirements, it will no longer be taken into account in future when awarding contracts.

"Ensuring sustainability in the purchasing process and in supplier relations is a core task and, in addition to the financial aspects, one of the most important future contributions of MAN procurement to the future viability of the company," emphasises procurement director Holger Mandel. "Anyone who doesn’t play clean is not a partner for MAN".