Sustainability is non-negotiable: in 2018, Porsche procured products and materials to a value of 9.5 billion euros from 7,654 suppliers. For them and all future Porsche suppliers and partners, the S rating – S stands for sustainability – will constitute a further binding criterion in the award process from 1 July 2019. “This enables us to elevate the issue of sustainability in procurement to the same level as the factors of quality, cost and punctual logistics,” explains Uwe-Karsten Städter, Member of the Executive Board for Procurement at Porsche AG.
“Sustainability is a matter of course for us. Our company founder Ferry Porsche already often reflected on what could be done to reduce the burden on the environment. That is why he anchored responsible behaviour firmly in the company’s philosophy. Thanks to the S rating, our sustainable actions will also have an impact on our value chain.”
The S rating will apply in future to the procurement process of all brands in the Volkswagen Group, which will therefore set standards in the strategic importance of the issue of sustainability. The S rating not only makes sustainability part of the contract, but also means that it is taken into consideration as early as the purchasing process. In addition to questions about environmental effects and social issues, it also includes compliance requirements. The S rating thus provides Porsche with binding statements about the environmental and energy management systems and the working conditions at its suppliers. A positive S rating is a requirement for order award to suppliers. As a result, potential risks in the supply chain are reduced at an early stage.