Responsible supplier management is essential for creating a resilient and sustainable supply chain. As part of a global network, we collaborate with approximately 30,600 suppliers worldwide, fostering long-term partnerships built on trust and transparency.
Close engagement with our suppliers throughout every stage of a project is a cornerstone of our success. By maintaining continuous dialogue, we ensure quality, reliability, and shared responsibility.
We aim to partner with suppliers who share our values, ensuring ethical practices and sustainability across the supply chain.
| Target | Metric | Baseline value 2023 | Status 2024 | Status 2025 |
| Maintain over 90% supplier prequalification against sustainability standards by 2030* | % | 90 | 91 | 90 |
| Conduct more than 100 supplier social audits by 2030 | Number of audits | 64 | 79 | 82 |
| Rate 20,000 suppliers through an independent sustainability rating system by 2030** | Number of suppliers | 9,000 | 10,500 | 12,800 |
*Includes direct spend with suppliers who had an annual purchasing volume above EUR 250,000 in either of the past two years, plus new suppliers in the current year with a purchasing volume above EUR 25,000. **External ESG rating integrated into ANDRITZ’s Supply Chain Management tools | ||||
Our supplier compliance approach consists of several elements, together forming a robust approach to managing human rights and environmental risks in our supply chain.
For our group-wide compliance program to be successful, all members of our supply chain must commit to the same values, principles and rules as we do, through our Supplier Code of Conduct. It is based on internationally recognized frameworks, including the standards of the International Labour Organization (ILO), the OECD Guidelines for Multinational Enterprises, and the principles of the UN Global Compact. In addition, suppliers must implement strategies to avoid the use of conflict minerals – such as tin, tantalum, tungsten, and gold – and are obligated to report any usage in accordance with international and local legal requirements. Where their use cannot be fully avoided, suppliers are expected to carry out an appropriate level of supply chain due diligence.
Suppliers are required to report any violation of the Supplier Code of Conduct.
As part of the onboarding process, all suppliers are required to complete a mandatory compliance and sustainability questionnaire. This process is managed through the ANDRITZ Supplier Relationship Management (SRM) tools, which facilitate the review, approval, and documentation of each supplier. By leveraging the SRM tools, we enhance supply chain transparency through detailed insights into suppliers’ sustainability policies, certifications, and practices. Additionally, the process supports risk identification and mitigation, strengthens supplier relationships, and ensures compliance with regulations such as the German Supply Chain Act and the upcoming EU Corporate Sustainability Due Diligence Directive (CSDDD).
To provide an objective perspective, suppliers are assessed not only through the ANDRITZ questionnaire but also via an independent sustainability rating solution. This solution uses ESG analytics to evaluate and monitor business partners’ performance across various sustainability themes. This standardized third-party assessment enables benchmarking across our supply base and complements internal prequalification and social audits.
Supplier audits are a core element of the ANDRITZ purchasing strategy and contribute directly to the company’s overall corporate strategy. These audits assess key areas such as product quality, technical capabilities, and social responsibility to ensure suppliers consistently meet ANDRITZ standards.
While ANDRITZ conducts various types of audits, our Sustainability Program prioritizes social audits to manage risks related to working conditions and human rights at supplier sites.To achieve our target of conducting more than 100 supplier social audits by 2030, we develop an annual audit plan based on a comprehensive risk assessment to determine priorities. In regions with potentially higher risks such as China and India, key suppliers are audited on-site. Audits are also conducted in other countries when necessary. In addition, unannounced social audits are conducted on a random basis in the mentioned regions to assess local working conditions and implement corrective actions where needed.
Corrective actions
During supplier audits, corrective actions are jointly agreed upon with the supplier and implemented through a structured corrective action plan, which may include follow-up audits. These efforts contribute to meaningful improvements at supplier sites.
Corrective measures are tailored to each situation, taking into account factors such as purchasing volume, ANDRITZ’s ability to influence the supplier, the geopolitical context, and the specific industry sector.
To uphold its standards, ANDRITZ applies a range of preventive measures, including training programs, regular audits, and contractual requirements. Suppliers identified as high-risk receive additional attention, including targeted audits focused on human rights and environmental compliance.
If violations are found, ANDRITZ acts promptly – remediation may involve developing corrective plans, providing further training, or, in serious cases, ending business relationships with non-compliant suppliers.
For many years, the top management of the ANDRITZ GROUP has made it crystal clear to all directors, managers and employees that business must be conducted in an ethical manner and in compliance with laws and internal rules.
Key policies form the foundation of our responsible business, safeguarding environment, human rights, health and safety, ethical conduct, and compliance.
We report our environmental, social, and governance performance in line with the European Sustainability Reporting Standards (ESRS).
