VW to Rate Suppliers on Sustainability

Volkswagen steps up its bid to bolster green credentials by announcing suppliers now will be rated on sustainability.

The automaker has introduced a worldwide Sustainability Rating for its suppliers to assess risks relating to human rights, environmental protection and corruption. Suppliers will be asked to provide a self-assessment of their working conduct by answering a questionnaire and by providing documents as evidence.

These will be checked by qualified third parties, VW says.

In the event of any doubt, it will conduct on-site checks and, if misconduct occurs in any of the sustainability areas, suppliers will be barred from bidding for contracts. The sustainability requirements are described in VW’s new Code of Conduct for Business Partners, which is binding for all companies in the supply chain.

VW has been preparing suppliers for nearly a year by providing information, events and workshops, and the scheme gradually will be introduced in the brands and into regions. In the future, carbon-dioxide emissions in the supply chain will be included in suppliers’ sustainability rating.

Stefan Sommer, board member for components and procurement, says: “We are convinced that a sustainable supplier network is a guarantee of long-term corporate success. Sustainability is becoming a decisive business factor.”