GRI 402: Human Rights Assessment 2016
In the third quarter of 2021 we began testing a tool that gives us the capability of conducting ongoing supplier risk assessment in five categories of risk: financial, market, sustainability, compliance, and performance. The test encompassed 32 suppliers that together account for 9 per cent of our annual spend. We intend to adopt this tool group-wide in 2022, thereby substantially enhancing our ability to manage risks, including human rights and other sustainability risks. In 2020 we scrutinised our non-fuel suppliers to identify those with a large carbon footprint and explored ways to encourage their decarbonisation. Unfortunately, we were not able enlarge the scope of the assessment and conduct a more in-depth analysis of non-fuel suppliers’ climate performance as originally planned in 2020. The project will continue in 2022. We doubled the number of HSE events with contractors, from six in 2020 to 13 in 2021. Amid the Covid-19 pandemic, most events were conducted online. For example, Avacon, an E.ON distribution system operator (DSO) in northern Germany, held three online forums in which representatives of Avacon, Group Supply Chain, and a number of contractors discussed networks of the future, occupational safety culture, the professional of tomorrow, and other topics. In addition, Schleswig-Holstein Netz, another E.ON DSO in northern Germany, conducted three in-person HSE events for contractors. We implemented our human rights due diligence process in mid-2021. It consists of a human rights risk matrix that we developed together with outside human rights experts. The risks of the different categories of goods and services we procure are plotted on one axis; the risks of the countries in which suppliers operate are plotted on the other. The risks of individual countries are based on the findings of eight human rights studies, such as the International Trade Union Confederation (ITUC) Global Rights Index and the United Nations Development Programme (UNDP) Human Development Report. The matrix covers the categories that account for more than 80 per cent of our annual spend. In 2021 a total of 304 new and existing suppliers completed the human rights due diligence process. Potentially risky suppliers first had to pass additional checks, such as a more detailed questionnaire or audit, and agree to make improvements and provide evidence of their implementation. Although many of our high-risk suppliers have successfully completed the human rights due diligence process, we acknowledge that the complexity of international supply chains represents an underlying challenge for transparency. We therefore also engage in industry initiatives to develop industry-specific standards for improving transparency in supply chains. The nuclear power plants operated by our subsidiary PreussenElektra will stop producing electricity by year-end 2022. They all have sufficient fuel to operate until this date. Consequently, PreussenElektra stopped procuring uranium in 2020. We continually improve our eLearning tools for employees, such as the module on human rights as well as cyber and data security that we introduced in mid-2021. About 80 per cent of employees had completed the module by year-end 2021. In addition, we trained more than 430 of Supply Chain’s employees on the importance of respecting human rights along our supply chain and on the aforementioned human rights risk matrix. After this training, we conducted periodic FAQ sessions to answer any follow-up questions about using the matrix. We also conducted two sustainability training sessions for 53 of Supply Chain’s employees. The sessions highlighted the tangible positive impact of a sustainable supply chain and how every buying decision can add to it.