DISCLOSURE 103-1: EXPLANATION OF THE MATERIAL TOPIC AND ITS BOUNDARY
Sika assumes responsibility for sustainability along the value chain, which includes suppliers. The Supplier Code of Conduct has been binding on all new suppliers since 2015 and is gradually being extended to existing suppliers. By the end of 2020, the agreement had been endorsed by a total of 9,210 suppliers (up by 10% on 2019) covering around 76% of our direct material suppliers. Sika thereby ensures that suppliers are informed of Sika’s ethical, environmental, and social expectations and guidelines and that they carry out their processes in compliance with the Sika sustainability criteria.

Sika’s Group-wide process maps out the main sustainability principles (economic, social, and ecological) for supplier qualification and evaluation. The multistage supplier evaluation process currently has three central elements: It starts with the commitment to comply with the Supplier Code of Conduct and the completion of a self-assessment. In unclear cases, the purchasing department will follow up with sustainability audits before concluding a supply contract. This process is currently under review with a look to additionally add TfS evaluations as a fourth pillar requirement to the supplier qualification and evaluation process at Sika.

DISCLOSURE 103-2: THE MANAGEMENT APPROACH AND ITS COMPONENT
Documentation generated during supplier qualification, such as audit and visit reports, supply agreements and specifications, is transparently recorded and stored on a dedicated platform introduced in the previous year. The system enables buyers to inspect suppliers’ qualifications and improve them in their countries as necessary.

DISCLOSURE 103-3: EVALUATION OF THE MANAGEMENT APPROACH
Sika regards the management approach as effective given the absence of social and environmental claims or legal action involving suppliers.