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Human rights and environmental due diligence
Responsibility for people and the environment
Corporate responsibility beyond the company's own boundaries
We are committed to our corporate responsibility for sustainable development beyond the boundaries of our own company. As a result, we continuously work to ensure compliance with human rights and to reduce negative environmental impacts. We outline the principles and values that guide our actions, our risk management system, and the measures and controls in our Policy Statement on Human Rights and Environmental due Diligence.
Jessica Mannocchi, Head of Sustainability and Human Rights Officer
Responsibility for people and the environment
„The people who are being forced to work in the supply chain for low pay or under inhumane conditions are paying the price for the availability of cheap goods in industrialized countries. That’s why it’s so important to establish transparency and to call attention to abuses. A lack of transparency causes disaffection and distance on issues for which companies and consumers bear a shared responsibility.“
Risk management
To ensure compliance with the SMA Group’s duties of care, we have established a comprehensive human rights and environmental risk management system.
Risk analysis
The risk analysis covers our own business area and our direct suppliers. If there is substantiated knowledge of possible violations of human rights or environmental obligations by indirect suppliers, these are integrated into the risk analysis. The risk analysis is updated annually and on an ad hoc basis. We systematically identify and assess risks concerning our own business area and direct suppliers with the help of external data sources.
Preventive actions
The SMA Code of Conduct for Employees also commits all employees to act ethically, sustainably and with integrity at all times, to assume corporate responsibility and to treat others with respect. Extensive training on the content of the Code of Conduct is delivered annually with various points of focus. Employees from the procurement department also receive training on our purchasing practices, procurement strategies and human rights and environmental topics. The SMA Code of Conduct for Business Partners sets out our standards and expectations in the supply chain and is binding for all direct suppliers as part of the general terms and conditions. They also undertake to pass on these requirements in their supply chains. Our Global Sustainable Procurement Policy describes our requirements and vision for responsible, sustainable partnerships with our suppliers.
Corrective actions
We immediately correct any violations in our own business area. To end any violations of human rights or environmental protection obligations by our direct or indirect suppliers as quickly as possible, an interdisciplinary team under the guidance of the SMA procurement department will work together with the relevant supplier to develop an action plan with set deadlines and responsibilities for correcting the violation.
Complaint procedures
With the Speak-Up Line run by an external partner, we have implemented a complaints procedure that gives both SMA group employees and all external stakeholders the opportunity to report human rights and environmental risks or violations within their own business area or at direct or indirect suppliers anonymously and in their native language.
Control of effectiveness
The Human Rights Working Group monitors the implementation and effectiveness of the SMA Group’s human rights and environmental risk management system and the associated requirements. Its members represent all relevant areas. As Chair of the working group, the human rights officer provides regular reports to the Managing Board on the work being done and the progress made.
Reporting
We provide information on the fulfillment of our human rights and environmental due diligence obligations on an annual basis in our Non-Financial Statement, which is part of our Annual Report.
Prioritized risks
As part of our risk analysis, we have identified and prioritized risks for our own business area and for the supply chain. The results are updated annually. The prioritized risks and the respective stage(s) of the value chain in which they occur are presented below.
Working conditions
We procure the components for our electronic devices from a global supplier base. Given the lack of transparency in the upstream value chain, there are risks here in relation to working conditions.
Occupational health & safety
The manufacturing activities of our suppliers and the SMA Group, as well as their work with electricity in operating areas and in downstream service business, result in high occupational health and safety requirements.
Environmental protection
Protecting the environment and encouraging a circular economy are extremely important to us on account of the environmental risks involved with electronic products. In view of the use of hazardous materials, strict requirements apply to disposal.
Diversity & equal opportunities
As a company in the electronics sector, the SMA Group has a high share of male employees. Accordingly, our ongoing diversity and equal opportunity measures focus on increasing the share of women and promoting equal development opportunities for male and female members of staff.