“Here at ebm-papst, the issues of human rights, envi­ron­mental protec­tion, and sustain­ability are closely inter­linked. Only by grounding our daily actions in respect for others and the envi­ron­ment can we truly live sustain­ability and live up to our over­ar­ching purpose ‘Engi­neering a better life.’ As such, we will continue to dedi­cate more focus to these issues in the future,” says Dennis Diefert, Human Rights Officer and Vice Pres­i­dent Busi­ness Func­tions & Group Compli­ance, summa­rizing the impor­tant role of due dili­gence for ebm-papst.

In dialogue with our suppliers

The German Supply Chain Due Dili­gence Act (LkSG) requires compa­nies to ensure social and envi­ron­mental due dili­gence at every stage of their global supply chains. A key compo­nent of the imple­men­ta­tion involves raising aware­ness among our inter­na­tional suppliers, partic­u­larly in regions where these legal require­ments are not yet widely known. “We make it clear that compli­ance with these stan­dards, which are enshrined in our Supplier Code of Conduct, is not volun­tary, but in fact a legal require­ment,” explains Calia Fred­er­s­dorf, Sustain­ability Purchasing Specialist.

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By contin­u­ously training our colleagues, we ensure that they all main­tain the same, up-to-date stan­dard of knowl­edge on this subject so they can analyze our global supplier pool and assist our suppliers when speaking to them in person. The dialog with the suppliers is very impor­tant to us here at ebm-papst, as it enables us to promote shared values and sustain­ability goals. “We also see the LkSG as a great oppor­tu­nity in this regard. It offers us the oppor­tu­nity to set a good example, strengthen our rela­tion­ships with our suppliers, and work together with them to improve their stan­dards,” Calia Fred­er­s­dorf explains. This enables us to exert a strong influ­ence on the entirety of our supply chain and promote a risk-free value chain – and it also leads to better customer rela­tion­ships.

Recog­nizing risks, finding solu­tions

Risk manage­ment at ebm-papst is an essen­tial compo­nent of legally compliant and ethical corpo­rate gover­nance, as reflected by our internal compli­ance direc­tives. These cover a number of areas, including envi­ron­mental protec­tion, human rights, the protec­tion of fair compe­ti­tion prin­ci­ples, and the avoid­ance of corrup­tion, bribery, and discrim­i­na­tion. “At ebm-papst, we take a coop­er­a­tive approach to risk manage­ment. Together with our colleagues and suppliers, we focus on protecting people and the envi­ron­ment,” explains Sylvia Meyer, Compli­ance Consul­tant.

We use regular risk analyses and our whistle­blower system (see info box) to proac­tively iden­tify and eval­uate poten­tial risks, and always do our best to speak to our suppliers as we look to develop solu­tions. Michael Müller, Risk Officer Own Busi­ness Area, is keen to point out: “Termi­nating a busi­ness rela­tion­ship should only ever be the last resort, after all other options for coop­er­a­tion and improve­ment have been exhausted.” The supplier risk analysis, which is used to check the supply chain for envi­ron­mental and human rights risks, is divided into two steps.

“Through risk analyses, audits and training, we ensure a uniform under­standing and consis­tent appli­ca­tion of the compli­ance guide­lines.”

Sylvia Meyer, Compli­ance Consul­tant

First of all, the country- and sector-specific risks in partic­ular are iden­ti­fied and assessed, so that we can then look in more detail at the suppliers that stand out. “This process allows us to closely analyze poten­tial devi­a­tions. We can then use this infor­ma­tion to initiate preven­tive or correc­tive measures – ideally by working together with our suppliers,” says Calia Fred­er­s­dorf.

“We also ensure a uniform under­standing and consis­tent appli­ca­tion of the Compli­ance Direc­tives in our own busi­ness area,” adds Sylvia Meyer, “be that by means of compre­hen­sive risk analyses, audits at our various subsidiaries, regular training for various employee groups, or discus­sions within the Global Compli­ance Officer Network.”

“Our commit­ment to fair and sustain­able action is the foun­da­tion of our work at ebm-papst. By working together on our stan­dards and processes with our internal and external stake­holders, we not only strengthen our supplier rela­tion­ships, but also initiate posi­tive changes right along the value chain. We are deter­mined to continue actively devel­oping and promoting sustain­ability issues in the future through trans­parent discus­sion and open commu­ni­ca­tion,” concludes Martin Wagener, Risk Officer Supply Chain & Vice Pres­i­dent Purchasing, rounding things off with a posi­tive outlook.