Environmental Footprint of Supply Chain & Traceability
Management Approach
Upstream suppliers are essential to the Company’s business model, sustainability mission, and product quality requirements. Pollution not only harms the environment and conflicts Belimo’s ethical standards, but improving resource efficiency and reducing waste also contributes to cost savings. This dual advantage drives Belimo to minimize the environmental impact of its upstream supply chain.
The Company holds its suppliers to the same rigorous standards as its internal service providers, requiring full transparency to facilitate risk assessment, including non-financial information on environmental aspects. Supply chain due diligence enables Belimo to identify, prevent, and mitigate risks and impacts tied to the supply chain’s footprint.
Signatories of Belimo Supplier Principles
All principles of environmental responsibility for suppliers are outlined in the Belimo Supply Chain Policy. Each supplier is expected to sign the Belimo Supplier Principles and ensure that their own sub-suppliers adhere to these standards as well.
In 2024, 99.9% (2023: 99.5%) of its direct purchasing volume is covered with signed Belimo Supplier Principles or the Supplier Code of Conduct (previous version). All A-suppliers, i.e. the suppliers with the highest procurement volume and/or strategic importance, have signed these principles or the Supplier Code of Conduct. Only suppliers with small to medium-sized volumes did not sign.
Environmental Assessment of Suppliers
Since 2024, Belimo is working with EcoVadis to perform a supplier ESG risk assessment. It assesses suppliers' environmental performance in terms of energy, waste, and water resource use, eco-design in product design, life cycle analysis of products, ISO 14001 certification, use of hazardous substances, GHG emissions, and more.
The assessment follows a three-step approach:
- Holistic risk analysis with EcoVadis IQ Plus: This first phase involves mapping all suppliers based on country and industry risk factors, supplemented with 2023 spend data, to prioritize attention on A-suppliers.
- Deep risk analysis with EcoVadis Rating: High-risk and significant spend suppliers undergo a thorough ESG assessment.
- Risk mitigation and improvement of ESG performance: Based on the ESG assessment results, suppliers receive concrete action plans to address identified issues and improve their sustainability performance.
This approach enables Belimo to monitor the environmental performance of its suppliers, identify high-risk suppliers, and collaborate with them to implement improvement measures. In step 2, the deep risk analysis, Belimo places particular emphasis on suppliers' GHG emission reporting, decarbonization efforts, meaningful climate targets (e.g., SBTi targets), and product carbon footprints.
A total of 87.9% of Belimo's direct purchasing volume (mainly A, B, S (strategic) suppliers) was assessed on environmental impacts using the EcoVadis assessment in 2024.
ISO 14001 Certified Suppliers
Belimo was able to increase direct purchasing volume with ISO 14001 certified suppliers, reaching a current volume of 79.9% in 2024 (2023: 74.4%).
ISO 14001 Certified Suppliers
Supplier Audits
Alongside the EcoVadis supplier assessment, contract management serves as a key tool for holding third parties accountable. Both selected new and existing suppliers are subject to regular process audits to ensure compliance with the Belimo Supplier Principles, including environmental requirements.
Belimo audits around 10% of its suppliers every year, focusing on A-, B-, and S-suppliers, categorized by procurement volumes and/or strategic importance. Each year, between one and five new suppliers are onboarded and undergo initial audits, while non-compliant suppliers are gradually phased out. Around 67% of the direct purchasing volume is sourced from suppliers with whom Belimo has partnered for more than twenty years. On average, it has maintained relationships spanning more than ten years for 91% of its suppliers.