Disclosure 103-1: Explanation of the material topic and its Boundary

Sika takes responsibility for sustainability along the value chain and includes suppliers. Since 2015, the "Supplier Code of Conduct", introduced in 2013, is binding for all new suppliers and is being gradually extended to existing suppliers. End of 2016, the Code was endorsed by a total of 3,390 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 introduced a new Group-wide process that maps out the main sustainability principles (economic, social, and ecological) for supplier qualification and evaluation. The multistage supplier evaluation process has three central elements: It starts with the commitment to comply with the Supplier Code of Conduct and the completion of a self-report questionnaire. In unclear cases, the Purchasing department will follow up with sustainability audits before concluding a supply contract. Sika continued to implement this new process globally in 2016 with a special attention to new suppliers in high-risk geographic regions and industries.

Disclosure 103-2: The management approach and its components

Documentation generated during supplier qualification, like audit and visit reports, supply agreements and specifications, is transparently recorded and stored on a dedicated platform introduced in the reporting 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 assesses the management approach as effective in view of the absence of social and environmental claims or legal action involving suppliers.