HARTMANN Group – Sustainability Report 2021 EN

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3.5 Responsibility in the supply chain

Global supply chain

and divisions. Within this, the topic of sustainability is anchored at various levels: Universally in the product group and supplier strategy; in terms of implementation through processes such as supplier selection, rating, and audits; and in additional agreements such as the Compliance Declaration and the Master Supplier Agreement.

As a global company, HARTMANN has also structured its supply chain globally. It allows the Company to respond flexibly and rapidly to short-term developments, supply-chain instabilities, and changing customer needs, thus enabling HARTMANN to increase its resilience and competitiveness. Close contact and trusting relationships with suppliers, in conjunction with clear regulations, ensure the necessary transparency and stability in the supply chain.

HARTMANN has identified seven value drivers for Procurement (see Figure 02), which are operationalized through various measures. One of these value drivers focuses on requiring suppliers to uphold sustainability standards.

HARTMANN purchases raw materials worth hundreds of millions of Euros annually from the USA, Europe, and Asia (primarily Malaysia and China) regions. Cellulose fluff accounts for the bulk of the procurement volume; superabsorbent polymers and nonwoven fabrics as well as nitrile, cardboard, film, and cotton are further relevant materials.

Collaboration with suppliers All suppliers must accept the principles of ethical business set out in the HARTMANN Code of Conduct or apply their own comparable principles, which they must verifiably implement along the value chain and supply chain. Once the contract is agreed, suppliers sign a Compliance Declaration and the HARTMANN Code of Conduct (COC). In the COC, HARTMANN requires full compliance with health and safety standards as well as with fundamental employee rights

Procurement strategy Corporate Procurement is organized into the Direct and Indirect Procurement categories; it is also organized in the countries according to product groups

02 | PROCUREMENT VALUE DRIVERS

Strategically secure material requirements

Strengthen cost-base efficiency

Ensure implementation of sustainability in the supply chain

Minimize supply-base and supply-chain risks

Manage a competitive supplier base

Drive growth through supplier innovation

Expand opportunities for digitization

HARTMANN GROUP 2021 Sustainability Report Company Profile | Sustainabiltiy Management | Products | Environment | Employees | Society | Annexes

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