VW Debuts Global Sustainability Ratings for Suppliers

Volkswagen AG has launched a sustainability rating system that scores its suppliers worldwide in terms of risk to corruption, environmental protection and human rights.

VW says misconduct in any of the three areas will exclude a company from future contracts. “Sustainability,” declares procurement chief Stefan Sommer, “Is becoming a decisive business factor.”

The binding ratings will be based on self-assessments with supporting documentation. VW says submitted materials will be reviewed by “qualified third parties.” Concerns about the reports will trigger an on-site review.

VW s also will require its tier-one suppliers to pass along the same rating system, described in its new Code of Conduct for Business Partners, to their own suppliers. Eventually the company plans to add a supplier sustainability rating for carbon dioxide emissions.