Supply Chain Management

Human rights risks are increasingly found in the deeper supply chain.

Accordingly, the supply chains for production and non-production material are analysed separately due to their different characteristics. They are integrated as an integral part of the Human Rights CMS.

  • Production material

    The assessment of human rights risk along the supply chain of production materials includes supplier screenings, audits, risk-based due diligence analyses and qualification modules for suppliers of production materials. With these tools, we aim to increase transparency in the supply chain and ensure compliance with internationally recognized human rights and other social standards and environmental requirements are observed.

    We work together with associations, organisations and other companies in various projects and initiatives (e.g. the sustainability initiative “Drive Sustainability”) to source raw materials responsibly and safeguard our sustainability requirements contractually (Daimler Truck Special Terms) with our direct suppliers.

    We check 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, the review of child labour.

    We check existing direct suppliers as part of regular risk analyses. For this purpose, we also conduct annual database research on sustainability and compliance violations in order to detect possible cases early on using current supplier data.

  • 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 underwent a due diligence audit.

    We contractually safeguard our sustainability requirements (Daimler Truck Special Terms) with our direct suppliers.

Handling of risky raw materials

In the assessment of human rights risks along the supply chain of production materials, special attention is paid to critical raw materials. The human rights CMS’s due diligence approach includes Group companies as well as direct suppliers and, risk-based, indirect suppliers. identified critical raw materials are prioritised with regard to their relevance and are reviewed step-by-step in more detail.

The main objective of the test described 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 the adhering of 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.