Sustainable supply chain: Organizing the procurement process responsibly
To support sustainability, our supply chain initiative applies strict environmental, social and ethical criteria to the suppliers we do business with. Since Deutsche Bank spends over €8 billion each year on goods and services, the initiative makes a real difference.
Criteria for a responsible supply chain
We place high demands on suppliers and want them to comply with the same standards that we have set for ourselves. Therefore social and environmental criteria play a decisive role in our global sourcing – and clients and investors increasingly expect that.
We have incorporated sustainability considerations into our sourcing and outsourcing policies, requiring basic minimum standards. Group-wide policies, including the Global Procurement Policy, outline how environmental, social, and ethical criteria should be taken into account before products and suppliers are chosen.
Code of conduct for our suppliers
All suppliers are expected to adhere to principles laid down in the DB Code of Conduct. In particular, they must:
- operate as an equal opportunity employer and recognize the right to collective bargaining as well as minimum and prevailing wages and benefits.
- provide a healthy and safe working environment, not use any forced or child labor, and refrain from harassment or abuse of employees.
- support sustainable development, act responsibly with regard to the environment, observe environmental criteria to conserve resources, minimize the negative environmental effects of the production, application and disposal of products, and reduce the use of hazardous products as much as possible.
Any supplier found to be in material breach of these requirements will not be permitted to deal with Deutsche Bank.
Green Supply Chain Initiative
In 2010, we launched the Green Supply Chain Initiative, which establishes a sustainability framework to be used when sourcing a wide range of goods and services. It stipulates that our suppliers have to meet certain eco-efficiency requirements – for example, providing information about the energy efficiency of their products or specifying time limits for the elimination of toxic substances in their products.
In particular, the program requires sustainability factors to be considered in the following key elements of the sourcing process:
- defining specifications
- developing a total cost model
- assessing evaluation criteria drafting contract clauses
- implementing supply chain reporting
We have introduced Green Supply Chain frameworks for various sourcing categories – for example, for power from renewable energy, paper, multifunctional printers, and servers. Every framework establishes specific sustainability criteria for procurement of the goods in question. We plan to expand the Green Supply Chain Initiative to include other categories.
We have signed contracts with suppliers of renewable energy; we make greater use of recycled paper, and by sourcing high-efficiency ‘smart’ equipment, we consume less energy and paper overall. As a result, the Green Supply Chain Initiative has measurably improved our eco-efficiency performance.