Responsible procurement

Heidelberg Materials currently collaborates with over 130,000 suppliers and business partners across more than 50 countries. Given the complexity of our global network and the predominantly local nature of our business relationships (accounting for approximately 90% of our global expenditures), it is crucial for us to ensure reliable information exchange at every level of our supply chain.

As a leading producer of building materials, we are aware of our responsibility to ensure natural resources are used sustainably. We are committed to efficient, environmentally friendly processes and develop innovative products and solutions. Through our Sustainability Commitments 2030, we are supporting the UN Sustainable Development Goals (SDGs). In doing so, we aim to help tackle social, economic, and environmental challenges at a global level. Our efforts are concentrated on those issues to which we can make a significant contribution as a company. 
 

Our Sustainability Commitments 2030

Supplier Management

Heidelberg Materials AG Berliner Straße 6
69120 Heidelberg
Germany

Our approach

We take a transparent, sustainable, and forward-looking approach to our procurement of products and services by going beyond the legal requirements for our business activity. In addition to economic criteria, we take social, ethical, and environmental factors into account when selecting and evaluating our suppliers. Most importantly, human, labour, and environmental rights are also non-negotiable for us when forming and maintaining business relationships.

Below the Heidelberg Materials logo there is a graphic with six circles interconnected by lines, each housing a simplified human figure.

Human Rights

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Environmental Protection

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Health and Safety

Our tools

As part of our responsible procurement initiative, we have launched a global risk assessment program for our supply chain. Its aim is to identify sustainability challenges before they become problems. IntegrityNext and Avetta are global program providers with extensive experience in monitoring corporate safety, skills, and social responsibility. They help us to audit and assess our suppliers in relation to our sustainable supply chain standards.

In addition to our focus on human rights, our vision for a sustainable supply chain also means that we call upon our suppliers to commit to reducing greenhouse gases. We proactively communicate this message in various ways, including at meetings with suppliers and through initiatives such as virtual supplier days on the topic of sustainability. We motivate our suppliers to be transparent about their  CO₂ emissions, actively reduce their carbon footprint, and have their reduction targets validated by the Science Based Targets initiative (SBTi). 
 

Our goal

Progress with respect to responsible procurement is made transparent with the help of the Supplier Sustainability Performance Rate. This KPI provides information on the percentage of Heidelberg Materials’ spend with critical suppliers who have received a green ESG rating from our partner IntegrityNext. Suppliers are evaluated on the basis of criteria covering human rights, compliance, environmental protection, occupational safety, and responsibility in the supply chain. 

A supplier can only receive a green ESG rating if it offers full transparency in answering extensive ESG questions and if the assessment by our partner IntegrityNext does not reveal any significant risks in the above-mentioned topic areas. Our aim is to achieve a Supplier Sustainability Performance Rate of at least 80% by 2030
 

Additional tools and measures

Supplier code of conduct

To fully understand and measure our social and ecological footprint across our value chain and improve our sustainability performance, we enforce our Supplier Code of Conduct, which obligates suppliers to comply with the fundamental principles of the International Labour Organization (ILO), the requirements of the German Supply Chain Due Diligence Act (LkSG), and applicable national and international supply chain laws.

Innovative partnerships for CO₂ emission reduction

Together with our partners, we are driving forward innovative projects and initiatives aimed at reducing  CO₂ emissions (e.g. through the joint construction of carbon capture facilities in clinker and cement production and in cooperation with construction machinery manufacturers with regard to the electrification of transport systems) in order to address climate change. 

Zero-tolerance policy

In our cooperation with suppliers, we follow a zero-tolerance policy. This means we reserve the right to terminate the contractual relationship if violations are not addressed with appropriate measures. 

On-site audits

On-site audits are used to monitor the implementation and execution of our standards. They help us to validate information provided by suppliers during initial assessments, to monitor performance improvement, and to ensure that our supply chain standards are complied with. Moreover, they allow us to closely collaborate with our suppliers towards a stronger sustainable performance.

Our training videos

We provide training materials on sustainability topics for suppliers and recognize the importance of providing training and instruction to service providers working at our plants. Suppliers are encouraged to distribute these resources within their organizations and throughout their value chains to raise awareness of these important topics.

In our videos, you will learn about our commitments and actions in the areas of environmental protection, fair wages, and occupational health and safety. Discover how you, as our valued partner, can help us uphold the highest standards to ensure a sustainable and safe future.

Start screen of a video, showing the title "Environmental protection"

Environmental protection

Start screen of the video, showing the text "Fair wages"

Fair wages

Start screen of the video, showing the text "Occupational health and safety"

Health and safety

Compliance hotline

To report if someone from our network does not comply with the applicable laws and international ethical standards, the Speak-up hotline can be used. The Speak-up portal ensures confidentiality and offers the option for anonymous reporting.

Our Speak-up internet portal