Risk Detection & Assessments

The Corporate Responsibility Self-Assessment takes the form of an online questionnaire on our SCM STAR supplier portal.

The Corporate Responsibility Self-Assessment follows a risk-based approach by focusing on suppliers whose main manufacturing base is located in a higher risk country. Nevertheless, if there is any suspicion of non-adherence to the Code of Conduct for Siemens Suppliers, the Corporate Responsibility Self-Assessment can be executed regardless of the supplier's location.

The CRSA is an integral part of the supplier qualification process

Once the supplier qualification process has been initiated the supplier will receive an invitation to complete the Corporate Responsibility Self Assessment electronically in SCM STAR. The questions check a selection of basic requirements as set out in our Code of Conduct for Siemens Suppliers and Third-Party Intermediaries.

The result of the Corporate Responsibility Self-Assessment will be calculated in the supplier portal and displayed in the form of a traffic light.

• Category 'green': The supplier has met and implemented the requirements in a sustainable manner and does not present a corporate responsibility risk.
• Category 'yellow': The supplier shows minor deviations from the requirements of the Code of Conduct for Siemens Suppliers and Third-Party Intermediaries and presents a potential corporate responsibility risk.
• Category 'red': The supplier shows significant deviation from the requirements of the Code of Conduct for Siemens Suppliers and Third-Party Intermediaries and presents a potentially severe corporate responsibility risk.

The Corporate Responsibility Self-Assessment remains valid for 3 years after completion. When the questionnaire becomes due for renewal, the supplier will receive an automatic e-mail invitation to complete the questionnaire again. If discrepancies are identified in the questionnaire with regard to the requirements of the Code of Conduct, the system automatically generates a corrective action plan that needs to be confirmed by the supplier.

While a green light indicates no sustainability risks, a yellow or red light indicates a potential sustainability risk and therefore requires action. Based on the identified discrepancies a corrective action plan will be created and automatically recorded in the supplier development module. Each of the corrective actions also has a defined time frame (grace period) for implementation.

Suppliers are able to access SCM STAR and report on how implementation of the corrective actions is progressing. Once all corrective actions have been confirmed as implemented by the supplier, the mandated buyer can close the corrective action plan in the system. Siemens may also initiate an external sustainability audit on the supplier's premises to ensure proper implementation of the corrective actions through an assessment by an independent sustainability auditor.

If the required corrective actions, despite assistance from Siemens, are not implemented within the grace period, whether due to lack of commitment or ability, Siemens will endeavor to resolve the problems in an escalation meeting together with the supplier.

If all efforts remain unsuccessful, Siemens reserves the right to terminate the business relationship and phase out the supplier.

The suppliers in focus for External Sustainability Audits are selected in accordance with a risk-based approach.

Siemens has appointed an internationally recognized auditing company to conduct these on-site audits based on the universally valid principles of the Code of Conduct for Siemens Suppliers and Third-Party Intermediaries.

Based on an in-depth assessment, the outcome is a report that enables Siemens and its suppliers to identify and manage potential sustainability risks.

We use a risk-based approach to select suppliers who are eligible for an external sustainability audit.

Suppliers undergoing an External Sustainability Audit will be asked to schedule an audit with the appointed auditor within a defined time window.The audits relate solely to the supplier's conformance and performance in relation to the six categories of the Code of Conduct for Siemens Suppliers and Third-Party Intermediaries.
The auditor treats all information as confidential, to the extent that such information is not already published, generally available to third parties or otherwise already in the public domain.

Our aim is always to create a fundamental awareness of the importance of a sustainable partnership

External Sustainability Audits also play an important role in the scheme of supplier development by improving the supplier's sustainability profile. In addition to the supplier assessment aspects, suppliers can enhance their awareness of Siemens’ sustainability requirements.

In the event of any discrepancies with the Code of Conduct for Siemens Suppliers and Third-Party Intermediaries, corrective actions must be agreed between Siemens and the supplier.

If all efforts of implementation of corrective actions remain unsuccessful, whether due to lack of supplier commitment or ability to develop the supplier, Siemens reserves the right to scale back or terminate the business relationship.