Our Approach in the Supply Chain: A global network of suppliers contributes to our company’s success, supplying us with innovative raw materials, components, materials and services, for example.
Sustainable Supply Chain
Our goal is to ensure that our partners along the supply chain also comply with social and environmental standards and thus support our sustainability efforts. In order to fulfill our due diligence obligations in the supply chain, we rely on a concept of binding requirements, screenings for direct suppliers of production and non-production material, audits, risk-based due diligence analyses as well as information and qualification measures for suppliers. With these tools, we aim to increase transparency in the supply chain and ensure that human rights, labor and social standards, and environmental requirements are respected.
In our Business Partner Standards, we define requirements for our business partners in terms of respect for and support of human rights, good working conditions, environmental protection, and compliance with legal requirements.
The analysis of our supply chains for production and non-production material is an integral part of our Human Rights CMS.
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Production material
We work together with associations, organisations and other companies in various projects and initiatives (e.g. the sustainability initiative “Drive Sustainability”) for responsible sourcing of raw materials and safeguard our sustainability requirements contractually (via our Daimler Truck Special Terms) with our direct suppliers.
We screen new suppliers on site before a possible order is placed. In particular, questions are asked about social standards such as working hours, remuneration, occupational safety, freedom of employment or freedom of association. In countries with a high risk of human rights, the audit is more comprehensive and includes, as an integral part, a review for child labour risks.
We also regularly screen existing direct suppliers for human rights risks. For this purpose, we conduct annual database research on human rights risks and other compliance topics in order to identify risks and possible violations early on using current supplier data.
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Non-production material
We hold our suppliers of non-production materials responsible for respecting human rights. To identify an increased risk of human rights violations, we assess the entire portfolio using key questions and database research.
New suppliers of non-production materials that are potentially critical in high-risk countries and critical purchasing areas in terms of social and environmental standards, business ethics and policy handling will be screened. Based on the preliminary risk analysis, a questionnaire was created in collaboration with a team of experts. This helped to uncover possible higher human rights risks of certain product groups and sectors, to engage in dialog with relevant suppliers and to undergo a due diligence audit.
We contractually safeguard our sustainability requirements (Daimler Truck Special Terms) with our direct suppliers.
Handling of critical raw materials
In the assessment of human rights risks along the supply chain of production materials, special attention is paid to critical raw materials. Identified critical raw materials are prioritised with regard to their relevance for truck and bus production and are then reviewed step-by-step in more detail.
The main objective is to establish the necessary transparency, identify risk hotspots and define suitable measures.
Special due diligence obligations apply to tin, tantalum, tungsten and gold. These minerals (or 3TG for short, after their English initials) are known as conflict minerals. We rely on international standards and initiatives. We are part of the RMI initiative, which is committed to due diligence along the supply chains of 3TG and other human rights critical minerals. The focus is on smelting and refining, as there is a mix of materials from different sources at this point in the supply chain. It is therefore important to ensure that the due diligence obligations in the supply chain are met before melting takes place.