Is there a particular topic that concerns you most?
Jürgen Gleichauf: The complexity of our supply chains. Our vehicles usually contain several thousand parts and components. We have thousands of direct suppliers, who in turn work with many sub-suppliers. In such complex and global networks, the commitment to protect human rights is an ongoing task that cannot be accomplished by simply pushing a button.
Human rights risks are often the most severe where we have the least influence, namely in mines and extraction sites at the very beginning of the supply chain. Here, we lack direct control because we typically don’t source raw materials ourselves, and without contractual relationships, we have no legal means of influence. Nevertheless, we are deeply committed to making a positive impact in these upstream stages of the supply chain and establishing overarching standards. Of course, we achieve the most when we work together with suppliers and partners to improve conditions for people and the environment on the ground. For instance, we require our direct suppliers to comply with our Responsible Sourcing Standards and to integrate them into their upstream value chains. Hence, by signing a supply contract our partners agree to create transparency in their supply chains in order to identify risk hotspots and to counteract them by taking appropriate action.
We also do this, for example, by conducting regular audits at our suppliers’ sites — preventive ones but also when we receive indications of potential human rights or environmental violations. Following an audit, our procurement units work with our partners to develop so-called Corrective Action Plans and closely monitor their implementation. These measures — and their regular review — help ensure continuous improvements in our supply chain.
We also join forces with other companies, organisations and initiatives to support social projects in the supply chain environment. One example is our joint program with the aluminum producer Hydro in the Amazonas Region in Brazil. Along Hydro’s 244 km bauxite pipeline we work closely together to strengthen the participation of indigenous communities and protect biodiversity in the rainforest. The goal is to involve local people and enable them to improve their economic, ecological, and social living conditions. As part of our governance, Mercedes-Benz helps establish the necessary structures and build knowledge for sustainable risk management in raw material supply chains.
We also conduct extensive Raw Material Assessments to analyze 24 critical raw materials for human rights and environmental risks and take measures to prevent and reduce those risks. This is another step toward greater transparency in our supply chains and demonstrates our commitment to continuous improvement. Transparency and risk management across the entire value chain are key.