Management Approach: Long-Term Relationships with Suppliers

103-2

Business Partner Code Safeguards Relationship with Suppliers (graph)Business Partner Code Safeguards Relationship with Suppliers (graph)

In order to live up to its aspirations of being a responsible company which acts with integrity, Vonovia places great emphasis not only on internal processes but also on responsibility along the entire value chain. For Vonovia, the nature of relationships with suppliers and business partners from the point of view of responsibility and integrity is therefore of critical importance.

Vonovia is very aware of the sustainability risks in the supply chain. The principal challenges in the supply chain primarily relate to compliance with labor and social standards in construction companies and their subcontractors. Cases of illicit employment, unsatisfactory occupational safety and noncompliance with the minimum wage still occur repeatedly in Germany.

Vonovia handles a considerable volume of trade-related construction work on its own, through its craftsmen’s organization. This means that most of the risks that could arise with external suppliers are excluded from the outset. Vonovia is continuously expanding the capacities of its craftsmen’s organization, since it is thanks to this craftsmen’s organization that Vonovia – in contrast to other companies – is significantly less dependent on the offerings of existing construction firms. Vonovia is therefore able to exclude service providers that violate certain sustainability criteria.