DLH_Balance_2016_ENG

Sustainable purchasing processes As a globally operating aviation company, the Lufthansa Group supports fair compe- tition, integrity and responsible business practices. The Group is committed to respecting current laws, guidelines and regulations unrestrictedly. The Lufthansa Group expects irreproachable conduct not only from its employees, but also from its suppliers and competitors. By integrating sustainability into the pro- curement process, the aviation group assumes corporate responsibility. At the same time, it minimizes risks and thus protects the Company from potential damage. In the context of expanding its supplier management, the Lufthansa Group will in the future give even greater weight to the evaluation criterion “corporate respon- sibility” and is thus planning to address this topic with greater emphasis in the regular supplier discussions. Group Purchasing Guideline The Group Purchasing Guideline, which has been in effect since May 2013, obliges suppliers to commit themselves to social and ecological responsibility. It is to be understood as an overriding speci cation for all procurement guidelines at the Group companies. In addition, it serves as a hand- book for buyers and all employees with contacts to the procurement markets. The regulations are updated and adapted con- tinuously. Among other considerations, it requires that these obligations be included in contracts with suppliers: Suppliers must comply with the ten prin- ciples of the UN Global Compact just as much as the Lufthansa Group. The principles range from respect for human rights through commitments to labor standards and environmental protection to working against corruption (see over- view, page 27). Deutsche Lufthansa AG was the rst aviation group worldwide when it joined this strategic United Nations initiative in 2002. They must comply with the four core work standards of the International Labor Organization (ILO). These concern free- dom of association, the right to collective bargaining, the elimination of forced labor and child labor, and prohibition of discrimination in respect of employment and occupation. They must consent to announced and unannounced audits by companies of the Lufthansa Group. They must recognize the Lufthansa Group’s right to terminate the contractual relationship in the event of a breach of the aforementioned agreements. Sup- pliers must also observe the Lufthansa Group’s Environmental Protection Guidelines. By including these commitments in con- tracts, the Lufthansa Group ensures that sustainability is taken seriously as an issue and that it becomes a way of life all across the supply chain. To familiarize its purchas- ers with the Group Purchasing Guidelines, the aviation group trains them at the Pro- curement Academy, which provides con- tinuing education opportunities for employ- ees from throughout the Group. New platform for tenders: buy:source The Lufthansa Group continuously devel- ops its tools covering the entire supplier management with the goal of optimizing the IT-based purchasing processes in an ongoing manner. Against this background, the previous purchasing platform FairPart- ners was replaced in 2015 by the Group- wide bidding platform buy:source. This move has created a user-friendly and open marketplace for posting and obtaining offers. 28 // Sustainable Business Practices

Pages Overview