Business Partner Code Safeguards Relationship with Suppliers

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Vonovia minimizes the risks associated with contractors in the area of labor law and occupational safety through its Business Partner Code. The Business Partner Code commits suppliers to economically and legally compliant conduct. It stipulates, among other things, that illicit employment must be ruled out, that the legal minimum wage must be paid and that valid German regulations on occupational safety and human rights must be observed. These obligations also apply to third parties – and thus to the subcontractors of our contractual partners.

The company’s construction managers maintain direct contact with our subcontractors and have a clear picture of the persons working on construction sites. Compliance with the Business Partner Code can thus be largely verified within the scope of this working relationship. In addition, our procurement department holds annual reviews with key subcontractors.

Vonovia has already cooperated with some companies for many years now, during which time it has established a high level of transparency and professionalism for its processes. Business relationships are characterized by trust and commitment, thus ensuring compliance with the Business Partner Code.

In case of repeated violations of the Code or other legal provisions, we take appropriate steps, either significantly reducing the sales volume with the affected supplier or terminating the business relationship entirely. Vonovia did not learn of any significant cases of noncompliance in the reporting year.

Vonovia’s Business Partner Code

The Business Partner Code commits suppliers to economically and legally compliant conduct.

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The obligations set out in the Business Partner Code apply to:

Contractors

Subcontractors of contractual partners

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The obligations set out in the Business Partner Code include:

A ban on illicit employment

The payment of the minimum wage

Adherence to the valid German regulations on occupational safety and human rights

In 2016, Vonovia used around 2,650 (2015: 2,500) suppliers for the areas of minor maintenance work, vacant apartment renovation and modernization. In the future, external firms will continue to perform specialized work, such as sewer and pipe cleaning. 102-9

The TÜV Rhineland Online Toxic Materials Management System (TOGs®) was introduced in cooperation with the TÜV certification body in 2016. This ensures the safety of materials used in our housing stocks. Within the scope of this system, our asbestos, topsoil and bonding agents (ATBA) contract was newly put out to tender in the reporting year to ensure compliance with the guidelines for toxic materials. As part of this tender, all of the participating companies were obliged to present licenses from the German Institute for Occupational Safety as well as specific training certificates for construction managers and employees for use of suitable tools. In addition, these companies may not employ subcontractors. Our central technical department is evaluating these companies.

A uniform supplier assessment system is currently being developed. The goal is for key suppliers to be evaluated by procurement as well as the Group’s departments in order to achieve transparency and to obtain a systematic overview of the performance and development of suppliers.