Page 17 - RAFI_ESG_20230919_eng

GOVERNANCE 17

tions in supply chains. Therefore we have started 2.9% Non-EU
Europe
evaluating our regular suppliers with a risk assess-
ment process designed for this purpose. In future, 1.6% 0.1%
we will advise all suppliers we consider critical North America Not assignable
about suitable preventive measures and precautions
( see 2.2.2). In addition, we are preparing for the
new EU-wide reporting standards that will apply to
us from 2025. We also continuously revise our goals
and actions in the area of sustainable development. 19.1%
At our headquarters in Berg as well as at RAFI Eltec,
we are working intensively to achieve initial certifica- Asia
tion of our systematic energy management. We
want to achieve ISO 50001 certification for the first
time in mid-2023. In 2023, we plan to achieve fur- 76.3%
ther certifications according to the ISO 27001 infor-
mation security standard at our locations in Poland
and Hungary. EU Europe

2.2 Procurement, supply chain, and obsoles-
cence management We strive for lasting supplier relationships charac-
[GRI 102-9, -10, -43, 204, 308 ] Procurement plays terized by trust and based on the applicable stan-
a key role in the business activities of our company. dards. These relationships are also based on con-
With a volume of €376 million, procurement ac- tractual provisions from our supply and quality as-
counts for roughly two thirds of the annual sales of surance agreements as well as additional contractu-
the RAFI Group. Purchasing and procurement are al agreements such as tooling contracts and non-
structured globally and include both direct procure- disclosure agreements. We require our suppliers to
ment from producers and distribution, particularly in provide evidence of certified quality and environ-
the major segment of electronic components. As an mental management in accordance with ISO 9001,
internationally operating company that is primarily IATF 16949, DIN EN ISO 13485, or DIN ISO 14001.
engaged in B2B activities, we bear responsibility In future, we will also require our suppliers to com-
within the supply chain for both the environment ply with the obligations resulting from the planned
and society. We successfully discharge this respon- initial certification according to DIN EN ISO 50001
sibility through active supplier management based at our Berg headquarters. We also require our sup-
on long-term cooperation with reputable, reliable pliers to comply with our Code of Conduct. Our con-
partners who know what we expect and, if possi- tract partners must complete standardized forms
ble, also what our customers demand and expect. stating the origin of conflict minerals. The manufac-
We operate a proactive obsolescence management turers and suppliers we commission pledge to com-
system to ensure the long-term availability of our ply with the RoHS and REACH criteria, and we con-
products despite ever-shorter product lifecycles, es- duct audits on a random basis to ensure this. We
pecially for electronic components. As a member of initiate an audit if there are indications that the
the Component Obsolescence Group Germany above principles have been violated; if we find defi-
(COGD), we have also had a seat on the COGD ciencies, we then agree adequate corrective actions
Board since 2019. with the supplier. RAFI excludes from the supply
chain any suppliers who fail to implement the agreed
2.2.1 Procurement corrective actions in a timely manner. We document
[GRI 104, 308, 414 ] The RAFI Group currently has the RoHS and REACH conformity of individual com-
business relationships with a large number of sup- ponents supplied in our component database and
pliers. In terms of the geographical origin of our carry out substitution tests to replace environmen-
sources of supply, more than 75% of our order vol- tally harmful materials. We rely on certified materials
ume is generated within the EU, with just under 3% and environmentally friendly procedures in our man-
coming from European countries outside the EU. ufacturing processes, including our numerous sol-
Around 20% of our group’s suppliers are in Asia, dering processes. As far as technically possible and
and around 1.6% are in North America. There is a with approval by the customer, we have switched to
clear trend toward increasing procurement of mate- ecological, water-based fluxes here. We also use
rials from Asia. Measured in terms of the origin of fairly traded solder and soft solders for almost all
commodities, materials, and components, the dis- such processes. Sustainability aspects play a crucial
tribution is as follows: role when utility value analysis is used to make a de-
cision regarding the awarding of contracts for ma-
chinery and capital goods. In our terms and condi-
tions for awarding contracts for work on RAFI prem-
ises, we focus on high-quality and environmentally
compatible service and construction work and re-
quire contractors to comply with our CSR guidelines.