During the purchasing of materials and services, the subjects of sustainability and transparency are of central importance for the HOCHTIEF Group and are firmly anchored in our processes. Given our great procurement volumes in the Group, we are aware that we also have to apply high-level requirements to the shaping of our purchasing processes and thus eventually also to the selection of our business partners.
Economic, ecological and social principles are the cornerstone of the HOCHTIEF Group’s business. As a globally operating company, HOCHTIEF—in line with high management standards and principles—complies with regional laws and regulations as well as local business practices, and often applies even stricter rules than these.
These principles are defined in our Procurement Directive. In consistent language, with binding rules and tested processes minimized in terms of risk, we describe in this directive our most important values, responsibilities and rules of conduct for all HOCHTIEF employees who are involved in the purchasing process.
HOCHTIEF places the same high requirements on its subcontractors and suppliers. HOCHTIEF only cooperates with partners who observe these requirements and also ensure adherence by their own subcontractors and suppliers. We have formulated our ecological and social requirements in our HOCHTIEF Code of Conduct for Business Partners.
As a partner to subcontractors, we aim to redouble our efforts to ensure fair, transparent procurement processes and further step up purchases of sustainable products and materials.
Common standards safeguard quality and responsible conduct during procurement and provide for extensive risk prevention.
We have defined a basic process that serves as the basis for identifying possible risks in our supply chain. In this way we want to ensure that potential sustainability risks are identified at an early stage in order to subsequently minimize them by means of targeted measures (i.e. Corrective Action Plans).
This process comprises an extensive prequalification of our business partners by HOCHTIEF, the acceptance of our HOCHTIEF Code of Conduct for Business Partners, unequivocal contract design, continuous monitoring on our construction sites during project execution, a structured evaluation after completion of performance and—with increasing importance and as a supplement—a detailed sustainability evaluation of our business partners by an independent organization (e.g. EcoVadis).
In addition, we identify potentially critical suppliers and subcontractors in our supply chain. We define these on the basis of monopoly positions, particularly huge contract volumes, deliveries of key components, and via the availability of resources. In 2018, HOCHTIEF classified approx. 2,700 and, thus, around four percent of suppliers and subcontractors as potentially critical. These represent approx. 65 percent of the total purchasing volume. Additionally, in 2018 HOCHTIEF identified around 10,000 of our non-tier 1 suppliers as potentially critical.