Thereby, we expect our suppliers and business partners to commit to ethical standards of conduct in daily business, towards employees, society, and the environment. This also includes areas described in our human rights statement.
We specify and communicate our expectations toward suppliers, service providers, and other partners. Fresenius Medical Care has enshrined these in Sustainability Principles for suppliers of the Global Manufacturing and Quality function in the regions EMEA, Latin America, and Asia-Pacific. Fresenius Kabi, Fresenius Vamed, and Fresenius SE & Co. KGaA specify these expectations in the respective Supplier Codes of Conduct. Both the Sustainability Principles and the Supplier Codes of Conduct are used as attachments for procurement contracts in the business segments.
With this, we want to achieve that our partners commit to our standards of conduct. Responsibility for selection and contracting lies within the dedicated responsible functions within the business segments. Basic measures, such as assessments or reporting mechanisms, are supported by the Compliance Management Systems.
We expect from our partners in supply to implement adequate processes, which ensure compliance with relevant standards. If we detect potential misconduct on the part of them, we will react, e.g. with additional control measures, depending on the severity of the misconduct.
In addition, Fresenius Kabi has identified strategic suppliers, which are under dedicated supervision by the global strategic procurement organization. First, a risk-based qualification is conducted according to defined global processes. Afterwards, strategic suppliers are regularly assessed according to criteria such as quality, and workplace health and safety, as well as environmental factors and compliance. This process also includes audits at suppliers.
To further strengthen and harmonize its commitment to sustainable procurement practices, Fresenius Medical Care has launched an initiative to promote sustainable supply as part of a global sustainability program. The global, cross-functional working group set up in this context will focus on supplier relationship management, risk management within our supply chain, and a sustainable supply strategy.