Measuring sustainability progress

Evaluation of high risk third parties

Why

Suppliers perform a significant portion of the business activities delivered to our customers. Our global supplier and vendor database must agree to the principles of becoming a registered supplier by accepting the Supplier Code of Conduct. Without a signed agreement, no business can be executed. Other business relevant information about the applicant are required, such as licences, permits, applied standards, insurance and tax information.

To ensure such services are conducted in line with our ethical principles and according to applicable laws and regulation, we apply an integrity due diligence process on high-risk suppliers. This ensures that collaboration with that collaboration with these suppliers will not result in adverse effects for our customers or the Group and its stakeholders.
 

Aim

Kuehne+Nagel regularly assesses the risk exposure of existing or potential suppliers following procedures that address compliance risks and other concerns related to engaging respective suppliers. Among other things, we are focusing on suppliers who interact with government officials on behalf of our business, such as customs brokerage. We establish reasonable and effective safeguards to mitigate any such exposure. Integrity Due Diligence (IDD) is applied when onboarding suppliers assessed as high risk and continuously updated throughout the duration of the business relationship.
 

Target

Effective completion of Integrity Due Diligence within predefined timelines. Red flags identified in the course of the due diligence needs to be comprehensively and effectively mitigated for allowing the business relationship to begin or continue following the approval-decision over a supplier. When criteria such as timelines or mitigated to allow the business relationship to begin or continue following the approval decision over a supplier. Continuous monitoring ensures the procedures are consistently and effectively performed and, where not, needed escalation and remediation to be applied.

 

66,700
GRI 102-9, GRI 308, GRI 414registered suppliers in the Supplier Management System (SMT) in total end of 2020

Progress 2020

Integrity Due Diligence has evolved into a continued and robust safeguard when interacting with suppliers assessed as high risk while not limited to services requiring interaction with government officials, such as for customs brokerages.

 

Overview of conducted supplier audits
  2020 2019 2018 2017 2016
Total number of approved high risk suppliers at year-end 676 673 634 643 555