Supply chain sustainability and compliance
Responsible supplier management ensures a resilient supply chain.
We are part of a global supply chain and have around 30,500 suppliers worldwide. Long-term partnerships and close contact with our suppliers at all times during the entire execution of a project are important success factors for us. In procurement of materials, we try to source goods from suppliers near our manufacturing facilities to avoid long transport routes.
Supplier Code of Conduct
For our group-wide compliance program to be successful, all members of our supply chain must commit to the same values, principles and rules as we do, through our Supplier Code of Conduct. It is based on internationally recognized frameworks, including the standards of the International Labour Organization (ILO), the OECD Guidelines for Multinational Enterprises, and the principles of the UN Global Compact. In addition, suppliers must implement strategies to avoid the use of conflict minerals—such as tin, tantalum, tungsten, and gold—and are obligated to report any usage in accordance with international and local legal requirements.
Suppliers are required to report any violation of the Supplier Code of Conduct.
Supplier onboarding
As part of the onboarding process, all suppliers are required to complete a mandatory compliance and sustainability questionnaire. This process is managed through the ANDRITZ Supplier Relationship Management (SRM) tool, which facilitates the review, approval, and documentation of each supplier. By leveraging the SRM tool, we enhance supply chain transparency through detailed insights into suppliers’ sustainability policies, certifications, and practices. Additionally, the process supports risk identification and mitigation, strengthens supplier relationships, and ensures compliance with regulations such as the German Supply Chain Act.
Supplier Audits
Supplier audits are a core element of the ANDRITZ purchasing strategy and contribute directly to the company’s overall corporate strategy. Through the supplier audits, ANDRITZ provides on-site expertise to help identify and mitigate potential negative impacts at supplier locations.
Each year, we create an audit plan based on a risk assessment to decide annual audit priorities.
In regions with potentially higher risks such as China and India, key suppliers are audited on-site. Audits are also conducted in other countries when necessary. In addition, unannounced social audits are conducted on a random basis in the mentioned regions to assess local working conditions and implement corrective actions where needed.
Corrective actions
During supplier audits, corrective actions are jointly agreed upon with the supplier and implemented through a structured corrective action plan, which may include follow-up audits. These efforts contribute to meaningful improvements at supplier sites.
Corrective measures are tailored to each situation, taking into account factors such as purchasing volume, ANDRITZ’s ability to influence the supplier, the geopolitical context, and the specific industry sector.
To uphold its standards, ANDRITZ applies a range of preventive measures, including training programs, regular audits, and contractual requirements. Suppliers identified as high-risk receive additional attention, including targeted audits focused on human rights and environmental compliance.
When violations are found, ANDRITZ acts promptly—remediation may involve developing corrective plans, providing further training, or, in serious cases, ending business relationships with non-compliant suppliers.
Tracking our progress
To turn our commitment into measurable action, we’ve set a clear target as part of our sustainability program We Care. We aim to ensure that 85% of our total supply volume is sourced through orders placed with assessed suppliers by the end of 2025.
