GIZ is committed to protecting human rights and promoting environmental sustainability – among our own staff and along our supply chains.
»By systematically practising sustainable procurement, we prevent risks in our supply chains right from the very outset. In many cases, we are able to specify in invitations to tender that certified goods are a requirement – goods that are not made using child labour, for example, or are produced in compliance with particular environmental and social standards.«
Marcel Nitschmann, Head of Section in the Procurement and Contracting Division at GIZ
In this video, Marcel Nitschmann explains why GIZ is a pioneer in sustainable procurement.
Supply Chain Act
The Supply Chain Act has been in force in Germany since 1 January 2023. It stipulates that companies must not only take responsibility for their own compliance with social and environmental standards, but that their duty of care obligations extend to their global suppliers too. This means that companies share the responsibility for protecting the human rights of workers in their supply chains.
This is how we have mainstreamed our due diligence
GIZ has produced a number of new documents and guidelines on human rights and sustainable procurement for its staff:
Sustainable Procurement Policy: defines our aim, includes the legal framework and a definition of sustainability criteria; it has been in force since 2021.
Code of Conduct for Contractual Relations: came into effect in 2022, establishing sustainability standards for procurement; it is used across the board in Germany for procurement of all goods.
Practitioners’ Guide: a new guide to sustainable procurement with practical implementation tips; introduced in 2022.
Policy on National Staff: contains information on standards relevant to human rights, such as ILO’s Core Labour Standards; scheduled for publication in 2023.
From office supplies such as pencils and printer ink to medical products, vehicles and even wind turbines: carrying out a huge number of different projects every year means that we require a high volume of material. In 2022, GIZ spent around EUR 2.1 billion – 53 per cent of its business volume – on procuring goods and services. Procurement that is as sustainable as possible, and which takes into account both environmental and social criteria, is important to us. The Act on Corporate Due Diligence Obligations in Supply Chains has once again strengthened our focus on the rights of people in our supply chains. In addition to that, it is our aim and our duty to provide a safe working environment for all our staff.
The Act came into force on 1 January 2023, but we began to review compliance with environmental and social standards in our supply chains and internal processes many years before that. In 2022, we used the CSR Risk Check tool to conduct a risk analysis for our goods and services, examining factors such as environmental and human rights risks along the supply chain. Thanks to this analysis, we now know which goods and services are particularly high-risk – because of frequent disregard for compliance with the rights of trade unions or because the health of workers is endangered, for example. We use this information to develop guidelines that show those responsible what risks are involved in procurement and which sustainability criteria they need to take into account. We are serious about sustainable procurement, as is demonstrated by the fact that we incorporate social and environmental criteria into our purchasing process instead of just buying the cheapest product.
We attach great importance to ensuring that our staff are well informed about human rights due diligence, which is why we expanded our training materials in 2021 and 2022. These materials are now available to all staff. We have been offering external service providers an online course entitled ‘Guide for Practising Corporate Sustainability’ since 2019. It aims to provide information about sustainability management at GIZ and to communicate the key elements of sustainability standards. Last year, we added content for recipients of financing to the course.
Reporting violations
In 2022, we extended our existing whistleblower system to include violations of environment-related obligations and environmental law. The system was initially designed to enable staff members, suppliers and other people involved in GIZ’s work around the world to report human rights violations to us; now they can use it to tell us about infringements of environmental legislation or regulations too. Reports can be submitted anonymously and in different languages. Various easily accessible channels are available, including GIZ’s online whistleblower portal and dedicated email addresses. It is also possible to contact an external ombudsperson.
Below you will find information about the Global Reporting Initiative’s (GRI) sustainability standards on the vital topics of sustainable procurement and protecting and promoting human rights:
Material topic 3: Sustainable procurement
GRI
UNGC
SDG
DNK
3-3
Management approach disclosures
Principles
GIZ is committed to protecting the human rights of all staff members.
GIZ has produced a policy statement on its human rights strategy, which is translated into greater detail in the human rights policy. In both documents, GIZ affirms its commitment to the core labour standards of the International Labour Organization (ILO). The human rights policy applies to all GIZ locations worldwide.
GIZ purchases goods and services from across the globe. GIZ puts its supply chains on a socially and environmentally sustainable footing. The company complies with all international and national regulations, including the German Supply Chain Act, which came into effect in 2023.
GIZ has set out basic sustainability standards for its procurement in its General Terms and Conditions of Contract (AVB) and General Purchase Conditions (AEB).
GIZ’s Safeguards+Gender management system allows it to identify risks in advance and respond appropriately at project level, while helping GIZ prevent any unintended adverse impacts on human rights.
The GIZ whistleblower system is designed to detect human rights breaches or any suspected human rights violations as well as any infringements of legislation, GIZ internal regulations or voluntary commitments. Incidents can be reported anonymously using the GIZ whistleblower portal.
The GIZ Sustainability Programme 2021–2025 sets out detailed objectives and activities relating to human rights and sustainable procurement. In 2023, for instance, all GIZ workforce groups are to be given access to information and training on human rights due diligence.
Measures
The policy on national staff was revised in 2022 to incorporate human rights-related standards and to communicate these to staff members. It will be published in 2023.
The Sustainable Procurement Team is conducting a risk assessment to identify the risk potential of services and goods along the supply chain. In 2022, GIZ also procured software that is to be used to conduct risk analyses of suppliers as of 2023.
Products and services for which there is a high risk of wrongdoings during production, use or disposal, are identified and listed on an ongoing basis. Additional sustainability criteria and recommendations for action with regard to procurement are drawn up by GIZ for these products.
Human rights violations in the supply chain are to be prevented through external certification of the procurement system by the Association for Supply Chain Management, Procurement and Logistics (BME).
To ensure easy access to the GIZ whistleblower system, GIZ has drawn up minimum standards for reporting in its country offices. These are to be implemented as of 2023.
Progress
All of GIZ’s contracts with service providers and suppliers contain human rights provisions.
Measurement of progress achieved towards the human rights objectives for 2021 set out in the current Sustainability Programme indicates that all of GIZ’s core measures are being implemented and are on track, including a whistleblower orientation paper.
GIZ has launched the three-stage certification of its procurement system by the Association for Supply Chain Management, Procurement and Logistics (BME), and has attained Level 1. To this end, GIZ has conducted a self-audit and drawn up a voluntary commitment to BME to comply with minimum standards.
In 2022, GIZ produced a code of conduct for contractual relations and introduced it on a pilot basis for all Head Office procurements of materials and equipment. In addition to the ILO core labour standards, this document includes other relevant social standards, including on appropriate working conditions and the rejection of every form of violence, as well as on environmental standards, integrity and data protection.
If GIZ receives a report of alleged law-breaking, it investigates the matter. If the allegations are substantiated, corrective action is taken. During the reporting period, there were no confirmed cases of human rights violations and thus no cases of compensation.
GIZ monitors the proportion of the company’s procurement spending that goes to local suppliers. A distinction is made between local purchasing in the country of assignment and Head Office procurement. In 2022, local procurement spending stood at EUR 524 million, equivalent to 24.9 per cent of total procurement spending. The Head Office placed commissions worth EUR 1,576 million, equivalent to 75.1 per cent of the total. This means that the proportion of locally procured goods and services was slightly higher than in 2021.
New suppliers that were screened using environmental criteria
The General Terms and Conditions of Contract (AVB) and General Purchase Conditions (AEB), which were revised in 2020 and 2021, require service providers and suppliers to comply with environmental and social sustainability criteria.
1–6
5, 8, 16
4, 6, 14, 17
414-2
Negative social impacts in the supply chain and actions taken
We have identified groups of goods that involve a risk in terms of human rights and other sustainability criteria. To minimise risks, we have drawn up product-specific guidelines for the sustainable procurement of these goods. Additionally, at the end of 2022, we began a mapping process to identify suppliers and service providers who supply these high-risk groups of goods or services, and where adverse impacts could conceivably occur. In 2023, in-depth screening and additional sustainability dialogues are planned with these suppliers to minimise risks.
New suppliers that were screened using environmental criteria
The General Terms and Conditions of Contract (AVB) and General Purchase Conditions (AEB) require service providers and suppliers to comply with environmental and social sustainability criteria. (See also GRI 414-1)
In 2022, GIZ produced a code of conduct for contractual relations and introduced it on a pilot basis for all Head Office procurements of materials and equipment.
7
12, 16
4
308-2
Negative environmental impacts in the supply chain and actions taken
GIZ has identified groups of goods that involve a risk in terms of human rights and other sustainability criteria and has drawn up product-specific guidance for the sustainable procurement of these goods. (See also GRI 414-2)
In 2022, GIZ also identified suppliers and service providers that supply these high-risk groups of goods or deliver these services. (See also GRI 414-2)
In 2023, in-depth screening and additional sustainability dialogues are planned with these suppliers to minimise adverse impacts. (See also GRI 414-2)
7
12, 16
4, 11
Material topic 4: Protection and promotion of human rights
Incidents of discrimination and corrective actions taken
Protection against discrimination, particularly on grounds of ethnic origin, gender, religion, disability, age, sexual identity and sexual orientation, is enshrined in the GIZ Code of Ethics. It applies equally to all staff members worldwide.
Every individual affected by discrimination within the company can contact the Compliance and Integrity Unit for advice or with a grievance; the complaints committee required under the German General Act on Equal Treatment (AGG) is part of this unit. Additionally, staff can turn to members of the staff representation, the gender equality commissioner, the representatives for young people and trainees, people with disabilities and LGBTIQ+ employees for advice. As the issues brought up are often highly confidential in nature, consultations are always anonymous. For this reason, no statistics can be produced.
Operations that have been subject to human rights reviews or impact assessments
GIZ’s Safeguards+Gender management system ensures human rights reviews at project level.
By 2023, GIZ will be enhancing the effectiveness of the human rights complaints mechanism in line with the UN Guiding Principles on Business and Human Rights.
412-2
Employee training on human rights policies or procedures
To uphold human rights, GIZ has produced training documents on human rights due diligence and made these available to all staff.
In 2022, GIZ also organised training and information events on human rights issues at individual locations, and ensured that individuals in key positions attended.
Staff are made aware of sustainable procurement requirements and trained accordingly. They are given a procurement manual that sets out specific practical examples. Web-based training on sustainable procurement is available to officers responsible for the commission and the budget.
Business partners are also made aware of sustainable procurement requirements and offered training. For instance, they can take the online course Guide for Practising Corporate Sustainability.
1, 2
5, 8, 10, 12, 16
6, 14, 17
Additional important information about the GRI, the German Sustainability Code and the Global Compact can be found here
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