Sourcing Policy
CSC Pure Technologies Sourcing Policy
Introduction
For CSC PT the choice and control of its suppliers, especially in case of critical raw materials, are of key importance for a business activity focusing on sustainability. In consideration of the specific risk potential for the different business areas, CSC PT Sourcing Policy contains, in the first instance, provisions which apply to the choice and control of all suppliers.
General Principles
1. Before entering into a business relationship with a new supplier, at least the following information must be gathered (Supplier Information):
- Name/company name and legal form
- Address
- Type of business
- Managing director/authorized persons
The Supplier Information must be updated on a risk-sensitive basis in regular intervals during the new business relationship and for already existing suppliers.
2. Potential suppliers must be checked and measures must be taken to ensure that no business transactions take place with suppliers named on the UN sanction lists.
3. Establishing business relationships with suppliers which use unfair business practices (e. g. offering an improper advantage for the placement of an order) is not allowed.
If an existing supplier behaves unfair, the supplier must either be caused to correct its behavior or the business relationship must be terminated, depending on the seriousness of the allegation.
4. When purchasing risk products, special duties of due diligence apply. Products are considered as risk products if their exploitation and purchase involve a particularly high risk of violation of human rights, violation of international trade rules and realization of criminal offenses. Tantalum, niobium, cobalt, tungsten, tin and molybdenum are considered as risk products ("Risk Products"). The list of Risk Products will be checked at regular intervals by the purchasing departments and, if necessary, supplemented. When purchasing Risk Products, the following additional measures ("Additional Measures") must be taken:
- Search whether further information about the supplier is publicly available via registers (e. g. trade register); evaluation of the information
- Verification whether further information about the supplier is available via the internet; evaluation of the information
- Request for further information from the supplier such as the bank account, copy of the photo ID of the acting person, tax numbers, articles of association, certified financial statement, evaluation of the supplier questionnaire
- Obtaining information about the origin of the Risk Product
- Agreement on an audit right unless quality audits have already been agreed and within the scope of such quality audits it is possible to audit also social and ecological aspects.
In case of Risk Products, Additional Measures must not only be carried out for potential new suppliers but also (renewed) at reasonable intervals for existing suppliers.
For other products which are not Risk Products, Additional Measures must only be carried out if there is a specific reason (e.g. hints by customers, press releases).
5. If the supplier is subject to quality audits, these quality audits must include social and ecological aspects. On this occasion especially the following aspects should be discussed with the supplier and, if doubts about the correctness of the information provided by the supplier arise and there is the possibility to check it, also be examined:
- Occupational safety
- Child labor
- Forced labor
- Granting of the freedom of association
- Adherence to environmental regulations
