S-Rating Update
Online Training
BB/N – Procurement Strategy Sustainability
Classification: PUBLIC
Online Training
Background information
“Antitrust law prohibits all anti-competitive agreements and other practices that have been agreed between
companies. This includes, in particular, agreements about prices, market division, general terms and
conditions, production volumes, etc. Just exchanging information relevant to competition, or even the
unilateral disclosure of such information, is prohibited.”
2020 BB/N – Procurement Strategy Sustainability | CSD class: 0.2 – 2 years 2
Online Training
Background information
Training opportunities
The online training course will be offered by Audi and Volkswagen on a rotational basis in a 2-week cycle.
Please find upcoming training dates here.
Questions
Please understand that it is not possible to ask questions during the presentation via the microphone function.
For questions during the webinar, please use the Live Chat function.
For any other questions, please send an e-mail to the respective S-Rating e-mail address (please see next page).
2020 BB/N – Procurement Strategy Sustainability | CSD class: 0.2 – 2 years 3
Online Training
Background information
Please send questions
for Audi to: s-rating@audi.de
for Bentley to: s-rating@bentley.co.uk
for MAN Truck & Bus to: cr-purchasing@man.eu
for Porsche to: sustainability-procurement@porsche.de
for Scania to supplier.sustainability@scania.com
for Seat to: s-rating@seat.es
for Skoda to: s-rating@skoda-auto.cz
for Volkswagen to: s-rating@vwgroupsupply.com
for Volkswagen de Mexico to: SiSR-VWM@vw.com.mx
for Volkswagen Group China to: vgc_sustainability@volkswagen.com.cn
for Volkswagen Group of America to: VWGoASustainability@vw.com
for Volkswagen Group Russia to: s-rating@volkswagen.ru
for Volkswagen Argentina to: proveedoressustentables@vw.com.ar
for Volkswagen do Brasil to: sustentabilidade2@volkswagen.com.br
2020 BB/N – Procurement Strategy Sustainability | CSD class: 0.2 – 2 years 4
S-Rating
Overview
> The Sustainability Rating (S-Rating) assesses our suppliers‘ performance in terms of environmental and
social sustainability as well as compliance.
> It is a prerequisite for awardings and applicable to the whole Volkswagen Group.
> A commissioning by Volkswagen Group is only possible with a positive S-Rating.
> To determine the S-Rating, we use different tools for environmental/social sustainability and compliance.
Environment Social Compliance
Self-Assessment Business Partner Due
Questionnaire & On-site Diligence tool used to
checks used to determine determine rating.
rating.
2020 BB/N – Procurement Strategy Sustainability | CSD class: 0.2 – 2 years 5
S-Rating
Key tools
1 SAQ 2 On-site check 3 Compliance check
Check of anti-corruption
Questions about basic guidelines On-site check of implementation performance on the basis of
and management systems in practice external databases, corporate
information and, possibly, a
supplier self-assessment
External plausibility check of Central check by Volkswagen
Carried out by external auditors
uploaded documents (NQC) Group
Example:
Does your company have Example:
Example:
occupational safety guidelines On-site check of
› Checking a business partner’s
that comply with national › Emergency exits
business model
legislation, industry › Evacuation plans
requirements and international › Evacuation drills
› Checking the executive
standards? › First aiders
management against an
o No › Fire safety
external compliance database
o Yes (please upload the › Protective equipment
appropriate document)
2020 BB/N – Procurement Strategy Sustainability | CSD class: 0.2 – 2 years 6
S-Rating
Self-Assessment Questionnaire (SAQ)
1 SAQ 2 On-site check 3 Compliance check
Check of anti-corruption
Questions about basic guidelines On-site check of implementation performance on the basis of
and management systems in practice external databases, corporate
information and, possibly, a
supplier self-assessment
External plausibility check of Central check by Volkswagen
Carried out by external auditors
uploaded documents (NQC) Group
Example:
Does your company have Example:
Example:
occupational safety guidelines On-site check of
› Checking a business partner’s
that comply with national › Emergency exits
business model
legislation, industry › Evacuation plans
requirements and international › Evacuation drills
› Checking the executive
standards? › First aiders
management against an
o No › Fire safety
external compliance database
o Yes (please upload the › Protective equipment
appropriate document)
2020 BB/N – Procurement Strategy Sustainability | CSD class: 0.2 – 2 years 7
S-Rating
Self-Assessment Questionnaire (SAQ) – Step by step
Request Registration Responding Assessment Recommendation Processing
The Volkswagen The supplier receives The supplier NQC Ltd. validates The supplier receives The supplier can work
Group sends a an SAQ request and completes the SAQ on the SAQ (along with re-commendations on the SAQ at any
request for registers on the the platform the uploaded for improvement and time (except during
completing the SAQ supplier- documents) evaluation the validation phase)
to supplier assurance.com
platform
Important!
Take 5 days of
processing time
at NQC into account
Status: Status: Status: Status: Status:
New Responding Validating Improving Completed
Improvement Request
The Volkswagen Group contacts the supplier if
an improvement is required prior to the
contract award
2020 BB/N – Procurement Strategy Sustainability | CSD class: 0.2 – 2 years 8
S-Rating
On-site check (OSC)
1 SAQ 2 On-site check 3 Compliance check
Check of anti-corruption
Basic information: Process:
Questions about basic guidelines On-site check of implementation performance on the basis of
• andAdditional
managementtool systems in practice Duration
• external approx. corporate
databases, 8 hours
information and, possibly, a
• Conducted if risk threshold • If deviations found, supplier to
supplier self-assessment
undershot develop and implement
External plausibility check of Central check by Volkswagen
Carried out by external auditors
Site-specific
• uploaded check (DUNS#)
documents (NQC) Groupcorrective action plan
• Check based on 11 main criteria • Implementation of the
Example:
• Conducted by external service corrective actions followed up
Does your company have Example:
Example:
occupational
provider safety guidelines On-site check of by the Volkswagen Group as
› Checking a business partner’s
that comply with national › Emergency exits
business model
necessary
legislation, industry › Evacuation plans
requirements and international › Evacuation drills
› Checking the executive
standards? › First aiders
management against an
o No › Fire safety
external compliance database
o Yes (please upload the › Protective equipment
appropriate document)
2020 BB/N – Procurement Strategy Sustainability | CSD class: 0.2 – 2 years 9
S-Rating
On-site check (OSC) – Step by step
Preparation Conducting Report Measures Tracking
An external assessor The approximately The assessor compiles Measures must be The assessor confirms
is appointed by VW. 8-hour on-site check is the final report. implemented if and monitors that the
They then start conducted by the deviations are found. measures are
planning the OSC. assessor. implemented and the
deviations rectified.
Content
¾h Opening interview
4h Site inspection & employee interviews
1½h Document review
1h Compiling corrective action plan
¾h Concluding discussion
Re-assessment possible
2020 BB/N – Procurement Strategy Sustainability | CSD class: 0.2 – 2 years 10
S-Rating
Key tools
1 SAQ 2 On-site check 3 Compliance check
Check of anti-corruption
Questions about basic guidelines On-site check of implementation performance on the basis of
and management systems in practice external databases, corporate
information and, possibly, a
supplier self-assessment
External plausibility check of Central check by Volkswagen
Carried out by external auditors
uploaded documents (NQC) Group
Example:
Does your company have Example:
Example:
occupational safety guidelines On-site check of
› Checking a business partner’s
that comply with national › Emergency exits
business model
legislation, industry › Evacuation plans
requirements and international › Evacuation drills
› Checking the executive
standards? › First aiders
management against an
o No › Fire safety
external compliance database
o Yes (please upload the › Protective equipment
appropriate document)
2020 BB/N – Procurement Strategy Sustainability | CSD class: 0.2 – 2 years 11
S-Rating
Self-Assessment Questionnaire (SAQ)
1 SAQ 2 On-site check 3 Compliance check
Check of anti-corruption
Questions about basic guidelines On-site check of implementation performance on the basis of
and management systems in practice external databases, corporate
information and, possibly, a
supplier self-assessment
External plausibility check of Central check by Volkswagen
Carried out by external auditors
uploaded documents (NQC) Group
Example:
Does your company have Example:
Example:
occupational safety guidelines On-site check of
› Checking a business partner’s
that comply with national › Emergency exits
business model
legislation, industry › Evacuation plans
requirements and international › Evacuation drills
› Checking the executive
standards? › First aiders
management against an
o No › Fire safety
external compliance database
o Yes (please upload the › Protective equipment
appropriate document)
2020 BB/N – Procurement Strategy Sustainability | CSD class: 0.2 – 2 years 12
S-Rating
Self-Assessment Questionnaire (SAQ)
1 SAQ 2 On-site check 3 Compliance check
Questions about basic guidelines
and management systems
New SAQ 4.0
> The new SAQ 4.0 replaces the previously valid SAQ 3.0
External plausibility check of
> Scheduled for publication on the website of the Drive
uploaded documents (NQC)
Sustainability industry initiative from mid-May 2020
Example: > Reduced number of questions and standardized form
Does your company have
occupational safety guidelines > Previous answers in SAQ 3.0 will be migrated to SAQ 4.0
that comply with national > When the questionnaire is filled in for the first time or
legislation, industry
requirements and international changed, the new SAQ 4.0 must be used
standards? > Documents in Chinese, German, English, French, Spanish and
o No
o Yes (please upload the Portuguese are accepted
appropriate document)
2020 BB/N – Procurement Strategy Sustainability | CSD class: 0.2 – 2 years 13
S-Rating
Minimum requirements
A B C
Consistent implementation of our Consistent checking of the Transparent and verifiable
requirements in the area of requirements in the Code of communication with business
sustainability Conduct for Business Partners partners
2020 BB/N – Procurement Strategy Sustainability | CSD class: 0.2 – 2 years 14
Overview of requirements
Five statements of principle
1 2 3 4 5
Code of Conduct Working conditions Health and safety Business ethics Environment
and human rights
Five mandatory statement of principle documents for all suppliers
» Questions 3, 7, 9, 11 and 13 of SAQ 3.0
» Questions 3, 5, 7, 9 and 10 of SAQ 4.0
» Options for small-scale suppliers:
> Suppliers with 10-99 employees under specified DUNS: Positive rating possible in the event of
compliance with the minimum requirements
> Suppliers with 1-9 employees under specified DUNS: An exception from the S-Rating can be applied
for
> Please send an email to the e-mail addresses specified above
2020 BB/N – Procurement Strategy Sustainability | CSD class: 0.2 – 2 years 15
Overview of requirements
Five statements of principle
1 2 3 4 5
Code of Conduct Working conditions Health and safety Business ethics Environment
and human rights
> Clarify the fundamental values and norms of your company succinctly
> Offer employees the guidance they need to align their own actions with the objectives of the company
> Provide a binding frame of reference for external and internal partners
> A code of conduct can also cover the topics of working conditions and human rights, occupational safety,
corporate ethics and environment
2020 BB/N – Procurement Strategy Sustainability | CSD class: 0.2 – 2 years 16
Overview of requirements
Five statements of principle
1 2 3 4 5
Code of Conduct Working conditions Health and safety Business ethics Environment
and human rights
The following issues must be included in the statement of principles:
> Child labor and young employees
> Working hours
> Salaries and social benefits
> Forced labor and human trafficking
> Freedom of association and collective bargaining
> Harassment
> Nondiscrimination
2020 BB/N – Procurement Strategy Sustainability | CSD class: 0.2 – 2 years 17
Overview of requirements
Five statements of principle
1 2 3 4 5
Code of Conduct Working conditions Health and safety Business ethics Environment
and human rights
The following issues must be included in the statement of principles:
> Emergency provisions
> Accident and incident management
> Workplace ergonomics
> Fire safety
2020 BB/N – Procurement Strategy Sustainability | CSD class: 0.2 – 2 years 18
Overview of requirements
Five statements of principle
1 2 3 4 5
Code of Conduct Working conditions Health and safety Business ethics Environment
and human rights
The following issues must be included in the statement of principles:
> Corruption, extortion and bribery
> Data privacy
> Conflicts of interest
2020 BB/N – Procurement Strategy Sustainability | CSD class: 0.2 – 2 years 19
Overview of requirements
Five statements of principle
1 2 3 4 5
Code of Conduct Working conditions Health and safety Business ethics Environment
and human rights
The following issues must be included in the statement of principles:
> Greenhouse gas emissions
> Energy efficiency and renewable energies
> Management of natural resources
> Waste prevention
2020 BB/N – Procurement Strategy Sustainability | CSD class: 0.2 – 2 years 20
Creating a statement of principles
The main points at a glance
IMPORTANCE CONTENTS
> Fundamental values and norms of your > Commitment to compliance with legislation
company clarified succinctly > Focus on relevant topics
> Guidance for employees > Defined goals & responsibilities
> Binding frame of reference for external and > Open dialog with internal and external
internal partners partners
FORM USE
> Specific or various subject areas, depending > Communication, integration into training
on company size etc. courses, basis for process descriptions
> Company logo, current version, signature of > Adapted regularly
the executive management, scope
2020 BB/N – Procurement Strategy Sustainability | CSD class: 0.2 – 2 years 21
Timeline
Minimum requirements
03.2020
Options for small suppliers:
› Suppliers with 10-99 employees under specified DUNS:
Positive rating possible in the event of compliance with the
minimum requirements 01.2021
› Suppliers with 1-9 employees under specified DUNS: An Compliance with the minimum
exemption from the S-Rating can be applied for. Please send requirements ensured, otherwise a
a mail to the e-mail addresses specified above. negative rating is possible
2020 2021
...
JAN 20 FEB 20 MAR 20 APR 20 MAY 20 JUN 20 … DEC 20 JAN 21
09.2020 (scheduled)
Verification documents for NQC must be
provided in one of the supported
languages when SAQ 4.0 is introduced
2020 BB/N – Procurement Strategy Sustainability | CSD class: 0.2 – 2 years 22
Online Training
Related links
> Information on sustainability at Volkswagen Group for business partners
> The basics for creating a statement of principles
> Background information on the SAQ (right-hand column)
> Practical guidance
> Supplier Handbook SAQ 3.0
2020 BB/N – Procurement Strategy Sustainability | CSD class: 0.2 – 2 years 23
Thank you for your attention!
BB/N – Procurement Strategy Sustainability
