Responsible procurement at Heidelberg Materials

Global Virtual Supplier Day 2023

Heidelberg Materials currently has more than 130,000 suppliers and business partners globally, and a spend of 15 billion euros (2022). Ninety percent of all goods and services are sourced locally in more than 50 countries. One of the key topics we discuss with our suppliers, next to operational excellence, is sustainability and the shared consideration of stringent ESG criteria. In addition to a strong 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. Together with our business partners, Heidelberg Materials is already driving various innovative CO₂ reduction projects and initiatives (e.g. in cement and clinker production and transport) to address climate change.

Since the end of 2021, we have been proactively reaching out to suppliers as part of our Responsible Procurement Initiative – not only at bilateral meetings, but also through virtual supplier days on the topic of sustainability, which are very well received.

Working towards supplier compliance for a more sustainable, responsible future

Collaboration in favour of climate neutrality and CO₂ reduction in the supply chain were in the focus of Heidelberg Materials‘ Global Virtual Supplier Day 2023, which was attended by more than 150 participants. In her presentation, Chief Sustainability Officer and Managing Board member Dr. Nicola Kimm emphasized the importance of supplier sustainability: “Responsible sourcing plays a decisive role in meeting our Sustainability Commitments 2030 as well as supporting the UN’s Sustainable Development Goals. We are working towards a transparent, sustainable, and forward-looking approach to procuring products and services by going beyond the legal requirements for our business activity.” Her message was complemented by presentations from the CPO, Dr. Ines Ploss, and the CEO of Heidelberg Materials Trading, Jose Maria Magrina, as well as a best practice presentation from a supplier.

The KPI by which Heidelberg Materials measures progress on the journey towards a sustainable supply chain is the “Supplier Sustainability Performance Rate,” which represents the percentage of critical supplier spend with an externally confirmed green ESG rating. Heidelberg Materials aims to achieve an ESG Supplier Sustainability Performance Rate of 80% by 2030. Trusting business partnerships based on full transparency are essential for seamless cooperation and sustainable operational performance.