Purchasing Policy

The purchasing function within the HOPPECKE Group is responsible for supporting the company worldwide through the selection, qualification and further development of the best-performing suppliers on its way to become an energy solutions provider and system supplier with a consistent brand quality at highly attractive prices. To this end, the purchasing function—in close collaboration with all stakeholders in the value-added chain—assumes worldwide strategic purchasing responsibility for all relevant goods and services, in compliance with our corporate business principles and based on ethical standards of business conduct, environmental protection and social responsibility (hereinafter "business ethics").

In accordance with its principles of ethical business conduct, HOPPECKE expects all suppliers to:

  • respect human rights and commit to observing them
  • reject any kind of forced or child labour
  • provide their workforce with a workplace that is free from hazards to life, limb and health, discrimination of any kind, violence or harassment
  • protect the right of workers to collective bargaining and recognize the core labour standards of the International Labour Organization (ILO)
  • comply with applicable environmental standards and use energy-saving processes during production as well as limit the emission of greenhouse gases
  • use natural resources carefully and take measures to minimize waste 
  • observe data privacy laws
  • comply with competition law requirements and reject any kind of corruption, and
  • observe and comply with all other statutory requirements applicable to them and applicable in their respective country.

In order to meet the procurement requirements in accordance with the principles of the HOPPECKE Group's business ethics, the individual HOPPECKE Group locations where procurement activities are carried out have corresponding purchasing guidelines and purchasing instructions in place. They define the rules, structures and processes to be adhered to when dealing with colleagues, customers, suppliers, other companies and authorities. The aim is to ensure legal and audit-proof processes and contract conclusion as well as the consistent consideration of the above-defined guidelines of business ethics. The purchasing guidelines or instructions form the basis for the preparation of additional specific instructions, checklists and procedures.

Particular attention is paid to the procurement of raw materials from regions or sources where compliance with the requirements of business ethics must be ensured through special procedures or efforts. Therefore, suppliers of so-called "conflict raw materials" for all plants worldwide are chosen exclusively by the central purchasing department of the HOPPECKE Group. Conflict raw materials, from today's perspective, are tin, tantalum, tungsten and gold from the Democratic Republic of the Congo or its neighbouring countries (Angola, Burundi, Central African Republic, Congo, Rwanda, South Sudan, Tanzania, Uganda and Zambia). The extraction of these raw materials in the above-mentioned countries is frequently associated with a violation of basic human rights and the income generated from it is used to finance armed conflicts.
It is therefore necessary that suppliers provide adequate proof of the origin of the above-mentioned raw materials to be supplied to HOPPECKE. Only suppliers who can provide adequate proof of origin may be approved for the supply of these raw materials. HOPPECKE recommends using the standardized reporting template of the Conflict-Free Sourcing Initiative (CFSI).

HOPPECKE reserves the right to assess its suppliers for compliance with the principles of the HOPPECKE Group's business ethics through audits. Such audits may be carried out by HOPPECKE, the HOPPECKE client or by a third party designated by HOPPECKE or its client.
Any breach of the HOPPECKE Group's principles of business ethics may constitute grounds for the extraordinary termination of the contractual relationship with the supplier. In the case of minor breaches, the supplier is given the opportunity to remedy the misconduct within a reasonable period of time by implementing appropriate remedial measures. In cases where the misconduct is not corrected within a reasonable period of time, as well as in the case of serious infringements, HOPPECKE reserves the right to immediately terminate the contractual relationship with the supplier and to assert possible claims for damages.