7/1/2019

VW Debuts Global Sustainability Ratings for Suppliers

Facebook Share Icon LinkedIn Share Icon Twitter Share Icon Share by EMail icon Print Icon

Volkswagen AG has launched a sustainability rating system that scores its suppliers worldwide in terms of risk to corruption, environmental protection and human rights.

Share

Facebook Share Icon LinkedIn Share Icon Twitter Share Icon Share by EMail icon Print Icon

Volkswagen AG has launched a sustainability rating system that scores its suppliers worldwide in terms of risk to corruption, environmental protection and human rights.

VW says misconduct in any of the three areas will exclude a company from future contracts. “Sustainability,” declares procurement chief Stefan Sommer, “Is becoming a decisive business factor.”

The binding ratings will be based on self-assessments with supporting documentation. VW says submitted materials will be reviewed by “qualified third parties.” Concerns about the reports will trigger an on-site review.

VW s also will require its tier-one suppliers to pass along the same rating system, described in its new Code of Conduct for Business Partners, to their own suppliers. Eventually the company plans to add a supplier sustainability rating for carbon dioxide emissions.