Responsible sourcing

Fostering a sustainable supply chain

Sulzer is committed to ensuring socially responsible sourcing across its supply chain. We collaborate with suppliers who share our values of quality, sustainability, social responsibility and excellence. The values of the UN Global Compact are reflected in our Supplier Code of Business Conduct, and form part of our expectations for all companies that we work with. These values serve as a reference point for upholding fundamental human rights, working conditions, occupational health and safety, business ethics and environmental law throughout our supply chain.

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We closely monitor the sustainability practices of our suppliers. Our Global Supplier Qualification Process for potential and existing suppliers allows the systematic identification, selection, auditing, verification and development of suppliers based on quality and sustainable supply chain practices and performance.

Adhering to the 10 Principles of the UN Global Compact

Sulzer takes part in the United Nations Global Compact (UNGC) initiative. The UNGC is a strategic policy initiative. With their membership, corporations express their commitment to align their operations and strategies with ten universally accepted principles of responsible business conduct. Our suppliers must commit themselves to ensuring that their organizations and sub-suppliers will act in line with the standards of Sulzer. Under our Supplier Code of Business Conduct, suppliers commit themselves to respecting the 10 Principles of the UN Global Compact by not using child or forced labor, respecting internationally proclaimed human rights, promoting supply chain transparency and integrity with regards to “conflict minerals”, not discriminating with respect to employment, acting responsibly regarding the environment and worker safety, and actively working against corruption in all forms, including extortion and bribery.

Monitoring and auditing suppliers using a risk-based approach

We manage our supply chain on a global basis. Our Global Supplier Qualification Process for our potential and existing suppliers allows the systematic identification, selection, auditing, verification and development of suppliers based on quality and sustainable supply chain practices and performance.

Sulzer’s sourcing practices include the regular assessment of its existing suppliers and market risks. This may include, particularly where a higher risk is identified, on-site visits and audit by internal sourcing personnel. In case of non-compliance, either the supplier is not qualified, or a corrective action plan is implemented before the relationship is continued. Our procedures examine procurement spend in countries identified as having high risk, allowing us to efficiently focus our due diligence and examinations.

Sulzer also complies with national initiatives aimed at reducing human trafficking and forced labor such as the California Transparency in Supply Chains Act, the Modern Slavery Act of 2015 and equivalent EU programs.

Prohibiting unsustainable substances

Sulzer complies with regulations such as REACH, RoHS and the Toxic Substances Control Act aimed at changing manufacturing processes and components to reduce health and environmental concerns. Sulzer maintains a Prohibited Substances List for all of its sites and its sub suppliers. This prohibition applies even when local or national laws permit use of these substances.

Sulzer also prohibits the use of mineral substances (“Conflict Minerals”) that are known to have originated from conflict-affected and high-risk areas where extraction, transport, trade, and handling of tin, tantalum, tungsten and gold may provide direct or indirect support to non-state armed groups or enable exploitive or fraudulent activities.

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