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Human rights and environmental due diligence
Responsibility for People and the Environment
Responsibility in the Value Chain
As part of our due diligence obligations, we identify and assess human rights and environmental risks within our own business area and among our suppliers. The principles and values that guide our actions, as well as our risk analysis procedures, measures, and planned controls, are described in our Policy Statement on Human Rights and Environmental Due Diligence.
Jessica Mannocchi, Head of Sustainability and Human Rights Officer
Responsibility for people and the environment
„As a company in the electrical industry, SMA relies on global supply chains and raw materials from various regions around the world. This entails a special responsibility to respect human rights. We have therefore established comprehensive processes to increase transparency throughout the supply chain, ensure compliance with due diligence obligations, and identify opportunities for improvement.“
Risk management
To implement its human rights and environmental due diligence obligations, the SMA Group has established a corresponding risk management system. This system is designed to identify and assess relevant risks and to develop appropriate preventive and corrective actions.
Risk analysis
The risk analysis covers our own business area and our direct suppliers. If there is substantiated knowledge of possible violations of human rights or environmental obligations by indirect suppliers, these are integrated into the risk analysis. The risk analysis is updated annually and on an ad hoc basis. We systematically identify and assess risks concerning our own business area and direct suppliers with the help of external data sources.
Preventive actions
The SMA Code of Conduct for Employees also commits all employees to act ethically and with integrity, to assume corporate responsibility and to treat others with respect. Extensive training on the content of the Code of Conduct is delivered annually with various points of focus. Employees from the procurement department also receive training on our purchasing practices, procurement strategies and human rights and environmental topics. The SMA Code of Conduct for Business Partners sets out our standards and expectations in the supply chain. We strive to oblige risk-based selected suppliers to sign the Code of Conduct. We also expect our suppliers to pass on our requirements in the supply chain.
Corrective actions
If we identify violations within our own business area, we take actions to resolve them as quickly as possible. If the violation occurs at one of our direct or indirect suppliers within the supply chain, we endeavor to end any actual violations of human rights or environmental protection obligations without delay. If necessary, we will work with the relevant supplier to develop appropriate remedies to remedy the breach.
Complaint procedures
With the Speak-Up Line run by an external partner, we have implemented a complaints procedure that gives both SMA group employees and all external stakeholders the opportunity to report human rights and environmental risks or violations within their own business area or at direct or indirect suppliers anonymously and in their native language.
Control of effectiveness
The Human Rights Council monitors the implementation and effectiveness of the SMA Group’s human rights and environmental risk management system and the associated requirements. Its members represent all relevant areas. As Chair of the Human Rights Council, the Human Rights Officer provides regular reports to the Managing Board on the work being done and the progress made.
Reporting
We provide information on the fulfillment of our human rights and environmental due diligence obligations on an annual basis in our Sustainability Statement, which is part of our Annual Report.
Prioritized risks
As part of our risk analysis, we have identified and prioritized risks for our own business area and for the supply chain. The results are updated annually. The prioritized risks and the respective stage(s) of the value chain in which they occur are presented below.
Working conditions
We procure the components for our electronic devices from a global supplier base. Given the lack of transparency in the upstream value chain, there are risks here in relation to working conditions.
Occupational health & safety
The manufacturing activities of our suppliers and the SMA Group, as well as their work with electricity in operating areas and in downstream service business, result in high occupational health and safety requirements.
Environmental protection
Protecting the environment and encouraging a circular economy are extremely important to us on account of the environmental risks involved with electronic products. This involves strict requirements regarding the handling of hazardous waste streams and the use of substances of concern.