Purchasing principles

Purchasing ensures that delivered products and services are in compliance with the following criteria:

            i) quality
            ii) compliance with rules and regulations
            iii) attractive economic terms and conditions

Quality and environmental criteria are based upon international quality standards. Purchased products and services have to be in line with the company’s environmental and safety policy, as well as local and international law.

Suppliers are evaluated in order to make the appropriate sourcing decisions. Purchasing secures objectiveness and bases the selection of suppliers on factual and reasonable criteria; unaffected by influence, interests or relationships that conflict with the concerns of the Cognis Group and/or any antitrust laws.

Cognis does not enter into a business transaction or other dealing with any person or entity listed on the Prohibited Party List.

Our corporate strategy is based on the principles of sustainable development – achieving a sensible balance between economic, ecological and social needs, without in any way compromising the development opportunities of future generations.

Cognis purchasing strictly opposes child labour and expects the same from all its suppliers. Another pillar of our philosophy concerning working conditions is the fact that forced or compulsory labour in all forms is strictly opposed by Cognis and should be as well by Cognis suppliers.

Cognis provides a safe and healthy working environment and takes pro-active actions to continuously improve safety and health conditions and in resolving potential issues.

At the same time we comply with applicable law and regulations governing equal employment opportunities and no discrimination of individuals or groups is tolerated. This implies the absence of any form of worker harassment. We also expect our suppliers to follow these rules.

All Cognis activities are based on the principles of sustainable development. Purchasing supports these principles by clearly focusing on the procurement of renewable raw materials as well as environmentally sound products and services. Purchasing is continuously sourcing for alternative “green” raw materials and resources saving equipment. Purchasing sets big value on buying packagings, which can be reused or recycled to minimize waste streams.

Although materials are purchased on a global basis, one of the focal points is to reduce the routes of transport for the environmental benefit.

Purchasing carries out supplier evaluations on a regular basis. One of the evaluation factors is the “protection of environment”, including the DIN standard ISO 14001.