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Information for suppliers on the Supply Chain Due Diligence Act

Responsibility for suppliers

It is our self-conception to make a positive contribution to the respect of human rights and the well-being of people. This applies not only in our own working environment, but also in our supply chain. As participants in numerous global value chains, we work closely with our suppliers and expect them to comply with human rights and the relevant international labor and social standards. Our expectations and obligations are set out in our Supplier Code of Conduct.

MediaMarktSaturn's goal is to better protect human rights in global supply chains.

FAQ ON THE DESIGN OF SUSTAINABLE SUPPLY CHAIN MANAGEMENT AT MEDIAMARKTSATURN RETAIL GROUP

The MediaMarktSaturn Retail Group places high demands on itself and its suppliers. It is therefore essential to monitor suppliers so that risks are identified and mitigated to positively impact the lives of people along global supply chains. To drive this forward, we have created an FAQ on our sustainable supply chain management.

General Information on the Supply Chain Due Diligence Act

1. Why do we need the Supply Chain Act?

Child labor, environmental damage, and extremely low wages - human rights are violated at many points along the global supply chain. The legal framework is intended to help companies based in Germany take more responsibility for protecting human rights and the environment.

2. What does the Supply Chain Act entail?

In short, the Supply Chain Act is intended to ensure that companies comply with human rights and environmental due diligence obligations.

Appropriate risk management is necessary in order to comply with these due diligence obligations. To this end, responsibilities must be defined within the company to monitor compliance with due diligence obligations, for example the appointment of a human rights officer. In particular, the following components must be covered:

  • Risk analysis
  • Prevention measures
  • Remedial action
  • Grievance mechanism
  • Reporting
  • Documentation

3. Who monitors compliance with due diligence?

The implementation of the law is controlled by the German Federal Office of Economics and Export Control (Bundesamt für Wirtschaft und Ausfuhrkontrolle; BAFA).

4. What human rights and environmental change impacts are covered by the Supply Chain Act?

The Supply Chain Act refers to the human and labor rights established by the International Labor Organization (ILO) and the United Nations (UN). These include:

Human rights risks

  • Prohibition of child labor - minimum age of employees
  • Worst forms of child labor
  • Forced labor
  • Other forms of slavery
  • Occupational safety
  • Freedom of association
  • Unequal treatment in employment
  • Adequate wage ("Living Wage")
  • Adverse effects due to environmental changes (soil, water, air, noise)
  • Land rights - forced evictions and deprivation of natural livelihoods
  • Security forces

In addition, the Supply Chain Act also refers to three environmental risks that have a direct impact on human health.

Environmental risks

  • Minamata Convention: Protecting people and the environment from the effects of mercury
  • Stockholm Convention: Management of Persistent Organic Pollutants (POPs)
  • Basel Convention: Control of Transboundary Movements of Hazardous Wastes and their Disposal

5. What does the term supply chain mean in terms of the Supply Chain Act?

The supply chain within the meaning of this Act refers to all products and services of an enterprise. It includes all steps in Germany and abroad that are necessary to produce the products and provide the services, starting from the extraction of the raw materials to the delivery to the end customer and includes

  • the actions of an enterprise in its own business area,
  • the actions of direct suppliers and
  • the actions of indirect suppliers.

This also includes the use of necessary services such as the transport or temporary storage of goods.

Expectations of our suppliers

1. What is the Supplier Code of Conduct and what does it contain?

The Supplier Code of Conduct clarifies our commitment to sustainability and passes on the expectations and requirements included therein to suppliers. This is intended to ensure that our suppliers comply with our high standards for working conditions, treat employees fairly and with respect, protect the environment, and incorporate ethical principles into their management systems.

It is based on the current version of the Responsible Business Alliance Code of Conduct. We thus align ourselves with the sustainability standards of the industry initiative and the world's leading electronics manufacturers.

2. What are my responsibilities as a direct supplier?

  • Contractual commitment to compliance and sustainability standards
  • Fulfillment of the human rights and environmental expectations and principles specified in the Supplier Code of Conduct
  • Passing on the requirements in the own supply chain, especially to own suppliers

3. In what form do I have to provide my sustainability information as a supplier to the MediaMarktSaturn Retail Group?

  • Information is requested via standardized questionnaires that are sent directly to suppliers via a platform (free of charge).
  • It is also possible to submit an EcoVadis rating (for a fee).
  • Alternatively, we accept a Corporate Self-Assessment Questionnaire (Corporate SAQ) from the Responsible Business Alliance.

In all three forms of assessment, questions are asked about implemented guidelines, management systems and measures. As a rule, information is requested as part of the regular risk analysis at MediaMarktSaturn or on an ad-hoc basis.

4. How much time does it take to complete the questionnaire?

Companies that already have the information they need can expect to spend half an hour.

5. What topics will be asked during the questionnaire?

The following topics are relevant when answering the questionnaire:

  • Human and labor rights
  • Environmental protection
  • Occupational safety
  • Responsibility in the supply chain

6. Do suppliers have to provide proof or documents?

Supporting documents are requested as part of the standardized questionnaires. The supporting documents are to be made available via an upload function.

7. Does non-compliance with the Supply Chain Act result in termination of the business relationship?

The aim of our due diligence risk management is not to exclude suppliers from business relationships. The aim is to work together to develop solutions to protect people and the environment and to prevent risks. If duties are violated, these must be remedied immediately and appropriate corrective measures taken.

A temporary suspension or termination of business relations is, in the sense of the Supply Chain Act only required if

  • a violation of a human right is judged to be very serious,
  • the measures developed are not implemented within the specified period of time, or
  • no other milder means are available and an increase in influence does not appear promising.

8. Can external parties (residents, employees at suppliers or within the supply chain) also submit a report to MediaMarktSaturn?

  • Yes. MediaMarktSaturn offers everyone the opportunity to submit a report via the "BKMS" whistleblower resp. complaint system, either anonymously or by name. Reports received are processed confidentially by the Allegation Management Team of the Compliance Department. The system can be reached at: Introduction (bkms-system.net)

If you have any questions, please feel free to contact our Sustainability Department in writing at sustainability@mediamarktsaturn.com.

In addition, your regular contacts from the departments are also available to you


How we enable conscious consumption

Sustainable products

The topic of sustainability in products plays an important role for us on two levels: for us as a retailer and for our customers.

How we go beyond our core business

Social engagement

We take responsibility – beyond our core business. We are committed nationally and locally and at our corporate headquarters in Ingolstadt.