Overview of the most important facts:

€ 9

billion for goods, services and power-plant components

99 %

of the purchasing volume is subject to sustainability requirements

98 %

of the imported wood pellets are certified

'Bettercoal' initiative starts developing a code for responsibility in the hard-coal supply chain

600,000

metric tons of sustainable wood pellets each year from our plant in Georgia

Supply Chain

We are challenged more than in the past to take responsibility for complying with social and environmental standards in the supply chain. For example, increased stake-holder expectations were defined in the revised OECD Guidelines for Multinational Enterprises of 2011. In the same year, the final report of the UN Special Representative on Human Rights and Transnational Corporations and Other Business Enterprises clearly defines the enhanced expectations.

We are confronted by specific challenges in the procurement of fuels. We import around 52 % of the hard coal we need for our power stations from countries outside the OECD. Important countries of origin for the supply of coal are emerging economies or developing countries where compliance with acceptable social and environmental standards cannot always be taken for granted.

We want to make a substantial contribution to reducing our CO2 emissions by using biomass. When we purchase biomass, we need to ensure that this is not at the cost of loss of biodiversity in valuable natural habitats or degradation of the soil.

Sustainability aspects also need to be taken into account when sourcing components for power stations and standard products. Occupational health and safety management play an important role here with contractors and partner companies, particularly in the environment of construction sites for power stations.


Objectives
  •  

    We are committedKPITarget
    … to avoiding reputational risks by making compliance with internationally recog-nised social and environ-mental standards an integral part of our supply contracts.Supplier management coverage in all procurement areas in %At a minimum 98 % of the purchasing volume
Target Attainment
  • We have comprehensively based our procurement of fuels, goods and services, as well as plant components on our Code of Conduct. Where necessary we have defined further detailed requirements for areas such as occupational safety and safe handling of hazardous materials. This means that appropriate processes and verifications are available for 98.6 % of the purchasing volume amounting to €18.2 billion. During the coming years, we aim to identify further specific requirements guided by the expectations of our stakeholders.