Suppliers and Procurement
From raw material sourcing to energy consumption, packaging, and supplier management: We have put sourcing at wienerberger on a new footing, with ESG criteria as an essential focus topic.
ESG, Innovation, and Operational Excellence are three important pillars of wienerberger’s sustainable growth. wienerberger Procurement and its supply partners are key to supporting the delivery of the Group’s strategy. Since 2019 Procurement at wienerberger has been harmonized as a central function, across all areas of the business, enabling synergies in areas such as energy, raw materials, capital and investments.
“The group-wide procurement team is driving sustainability throughout our supplier value chain, laying the foundations for a greener future. Through this focus, we are setting new standards and sending a clear and strong signal as the market leader in sustainable procurement in our industry.”
Procurement at a glance
> € 1,6 bn
Suppliers of production materials
EcoVadis Procurement Sustainability Score
Every year, wienerberger buys goods and services worth € 1.6 billion. In 2020, our procurement management was put on an entirely new basis with a clear focus on climate protection, energy efficiency, biodiversity, and circular economy. Furthermore, digital platforms have been implemented to facilitate our central and local Procurement colleagues to record, measure and monitor our improvement in this area. Development of our employees working in procurement is key and specialized training on ESG topics has been implemented.
We have set ourselves clear targets to be achieved by 2023: CO2 emissions from the company’s vehicle fleet will be reduced by more than a quarter. Over 95% of the electricity used will be green electricity, and biogas will be introduced. The principle of circularity will also be applied in packaging: More than 30% of the film used will be made from recycled materials.
How do we engage with our key-Suppliers and evaluate the synergies from these strategic alliances?
wienerberger Procurement has established its Supplier Relationship Management (SRM) approach and protocol in 2020, as part of the wienerberger Procurement Responsible Sourcing strategy 2020+.
We aim to measure and recognize the value delivered by our key suppliers in the areas of operational and sustainability development. With an effective and open communication, we want to encourage continuous Supplier performance improvements in these areas and strengthen the business relation between our Suppliers and wienerberger.
A great contributor to our resilience during 2020 and 2021 has been this close alignment and communication with our supplier base, which minimized the effect on our Group performance during this difficult period
“Our new procurement system based on ESG criteria has taken my talks with our partners to an entirely different level. It motivates our suppliers to join forces in embarking on a new and more sustainable course.”
- Does the Supplier’s services further develop wienerberger?
- Do the materials/products technically enhance our portfolio?
- Is the supplier looking for a long term mutually beneficially relationship?
- Is the supplier constantly looking to improve in areas of Sustainability and innovation?
With our annual Supplier Awards Program introduced in 2020, wienerberger looks to recognize the outstanding continuous performance improvement of our suppliers in the areas of operational performance and ESG.
“Through this program our aim is to encourage continuous performance improvement and further strengthen the business relation between our suppliers and wienerberger”.
Sustainable sourcing is a pillar of our business ethics. By signing the Wienerberger Social Charter back in 2001, we undertook to comply with the conventions of the International Labor Organization (ILO). In 2003, Wienerberger acceded to the UN Global Compact. The company also endorses the UN Sustainable Development Goals. Last year, the Responsible Sourcing Policy was rolled out to the entire Group.
Our efforts are bearing fruit: In 2020, Wienerberger’s sustainability management was awarded a silver medal by EcoVadis, a leading international sustainability rating agency, with our specific Sustainable Procurement score doubling over the 12 months from the previous assessment. This distinction underlines our strong position as an advocate of sustainability in the building materials industry: Wienerberger ranks above the sector’s average in all areas from sustainable sourcing to ethics to environmental protection, labor rights, and human rights.