7Creating Value Beyond the Company’s Business

7.1 Sustainability as an Integral Part of the Company’s Supply Chain Management

GRI 3-3: Management of material topics

As is typical in the high-tech sector, Cicor’s supply chain is complex, global and multi-tiered. In 2024, the Company procured a broad variety of goods and services. This inevitably demands proactive management and presents a challenge to assess and ensure compliance at all levels. In particular, ethical and social issues in the supply chain, such as child labour, forced labour, human trafficking, and environmental exploitation, can have severe legal, financial, and reputational consequences. As set out in Cicor’s Compliance and ESG Strategy, the Company implemented a standardised compliance assessment in 2023, which was expanded and improved in 2024, including a pathway to 2030 for responsible supply chain management. Assessing supply chain risks according to a standardised three-step compliance screening is the baseline of the Company’s responsible supply chain management. Cicor has defined processes to ensure transparency through its supply chain with an active screening and measurement approach. Together with the Company’s partner Integrity Next, the Company aims to align its supply chain to national and international regulations. The Company’s Business Partner Code of Conduct is based on internationally recognised guidelines such as the International Labour Organisation (ILO), the values and principles of the United Nations Declaration of Human Rights and the OECD Guidelines for Multinational Enterprises. The Company’s Business Partner Code of Conduct is aligned with Cicor’s core values and standards. By anchoring sustainability requirements and monitoring measures in procurement processes, Cicor increases the effectiveness of the Company’s supplier management, reduces possible risks, creates transparency along the supply chain, and initiates improvement processes at suppliers.

7.2 Cicor Supply Chain Structure

GRI 3-3: Management of material topics
GRI 408: Child Labor 2016

The Company’s suppliers are classified according to their region and criticality level. Within the Cicor structure, the regions are as shown below, listing only relevant countries:

Region

Countries

Europe

includes the member states of the European Union as well as the United Kingdom, Switzerland, Liechtenstein and Turkey

North America

includes the United States of America and Canada

Asia

China, Vietnam, Hong Kong, Singapore, Indonesia, Myanmar, India, Japan, Cambodia, South Korea, Thailand, Taiwan

In total, 70% of Cicor’s direct suppliers are based in Europe, 26% in Asia and 4% in North America. Within Europe, the majority of the Company’s direct suppliers are based in Germany (43%), followed by Switzerland (22%) and the United Kingdom (18%). Other European countries include Liechtenstein and Turkey, totalling 18%. The Company’s suppliers from Asia are based mainly in China (40%) and Singapore (25%). Cicor has business relationships with 81 suppliers based in the United States, and 7 suppliers are based in Canada. As part of Cicor’s responsible supply chain journey, the Company shares a classification matrix based on the terms spend, criticality and relevance.

As part of this structure, Cicor classified 842 suppliers as A suppliers, and 1 471 suppliers as B suppliers. C suppliers are defined as local supporting suppliers with no direct impact on a Cicor product. The C suppliers are not part of the proactive screening. As part of the Company’s responsible supply chain processes, all A and B suppliers conduct a self-assessment applying environmental, social and governance criteria.

7.3 Responsible Supply Chain Management

GRI 3-3: Management of material topics
GRI 308: Supplier Environmental Assessment 2016
GRI 414: Supplier Social Assessment 2016
GRI 408: Child Labor 2016

At Cicor the term responsible supply chain management refers to the ethical and sustainable procurement of goods and materials across a company’s supply chain. It involves ensuring that suppliers operate in compliance with environmental, social, and governance (ESG) standards, while maintaining the quality and integrity of products or services. This practice integrates respect for human rights, environmental stewardship, and economic equity, fostering resilience and accountability within the supply chain.

One key element of responsible sourcing is recognising and mitigating potential adverse impacts associated with procurement activities. Companies commit to practices such as fair labour conditions, ethical treatment of workers, the elimination of forced or child labour, and the promotion of diversity and inclusion. Additionally, responsible sourcing emphasises minimising environmental harm by reducing waste, conserving natural resources, and supporting the transition to low-carbon and circular economy models. To implement responsible sourcing, Cicor established a clear guideline for responsible supply chain management defining how to engage with stakeholders and monitor supplier compliance through audits and certifications. Additionally, the Business Partner Code of Conduct shares the Company’s values and approaches with suppliers.

Transparency plays a critical role, with companies disclosing sourcing practices and addressing challenges openly. By adopting responsible sourcing principles, Cicor not only fulfils regulatory and stakeholder expectations but also enhances its reputation, ensures long-term supply chain stability, and contributes to global sustainability goals.

Classification

2024

A suppliers

36%

B suppliers

62%

C suppliers

2%

_ Data on suppliers covers all Cicor sites if not stated otherwise as of 31 December 2024.

_ Data of suppliers does not include Nordic Engineering Partner, Sweden.

Every new supplier undergoes a basic compliance check before being onboarded to the Company’s system. As of 31 December 2024, a total of 2 363 suppliers are subject to the Cicor Supply Chain Responsibility Screening and aligned with the shared classification. These suppliers underly the active ESG screening process with the Company’s supply chain tool Integrity Next. According to the standards of the supply chain act, Cicor shares measurements and actions with these suppliers as part of the Company’s pathway. During 2024, the Company assessed 14% of the suppliers as potential high-risk suppliers. 6 suppliers were blocked or phased out due to sanction list criticality.

The Company’s approach to responsible supply chain management and sustainability in the corporate context goes beyond environmental stewardship to encompass the social and economic dimensions of a company’s operations. Workers across the value chain are vital stakeholders whose well-being, rights, and development directly influence a company’s long-term success and social impact. Reporting on the importance of workers in the value chain demonstrates accountability, fosters trust, and highlights a company’s commitment to responsible business practices.

Workers at all stages of the value chain, from raw material extraction to manufacturing, logistics, and retail, contribute to the creation of goods and services. Their productivity, skills, and innovation drive operational efficiency and quality. Workers are entitled to fair wages, safe working conditions, and protection from discrimination and exploitation. Addressing these concerns aligns with global human rights standards, such as the Universal Declaration of Human Rights and the International Labour Organisation’s conventions. Employment and fair labour practices in the value chain support community well-being and economic stability. Responsible practices mitigate risks of labour unrest, supply chain disruptions and reputational damage. Workers in the value chain are indispensable to achieving sustainable and resilient business practices. Transparent and detailed reporting on their well-being and development highlights a company’s dedication to social responsibility and ethical operations.

In 2024 Cicor invited a total of 2 316 suppliers to an assessment for social impacts, 98.1% of the Company’s screened suppliers. 54% of these suppliers shared an initial assessment along social impacts such as human rights standards, child labour and health and safety. Amongst these 2 316 suppliers, Cicor identified 42 (2%) as having a potential negative social impact on the Company’s supply chain, and 23 (>1%) as having significant potential negative impact in human rights and labour standards. None of the Company’s listed suppliers, however, shared potential negative impact for child labour standards.

 

No. of total suppliers

% of total suppliers

Suppliers screened for environmental topics

1 276

54%

Suppliers with potential negative impact for environmental topics

136

6%

Suppliers with significant negative impact for environmental topics

8

<1%

Suppliers blocked or phased out due to negative environmental impacts

0

<1%

 

 

 

Suppliers screened for social topics

1 276

54%

Suppliers identified having a potential negative social impact

42

2%

– Suppliers identified having a potential negative social impact for human rights

23

<1%

– Suppliers identified having a potential negative social impact for child labour

0

<1%

– Suppliers identified having a potential negative social impact for health and safety

21

<1%

– Suppliers identified having a potential negative social impact as relates to bribery and corruption

14

<1%

Suppliers blocked in 2024 for reasons other than shared above (e.g., sanction lists)

6

<1%

_ Data on suppliers covers all Cicor sites if not stated otherwise as of 31 December 2024.

_ Data of suppliers does not include Nordic Engineering Partner, Sweden.

To ensure that Cicor continues to avoid human rights violations, child labour, as well as any other unethical or noncompliant behaviour in its supply chain, the Company is training its employees with regular workshops during the year to raise awareness of the relevant environmental and social aspects in procurement. During the on-boarding process, all new suppliers are subjected to a compliance check according to the established risk assessment protocol. This allows critical suppliers to be evaluated at an early stage and measures to be taken to proactively manage compliance in close engagement with the corresponding suppliers. Especially suppliers for Cicor’s medical technology are subject to a regular audit from Cicor’s side to ensure high quality standards in its products.

Furthermore, as part of its Business Partner Code of Conduct Cicor has developed statements on human rights, non-discrimination and anti-harassment, as well as anti-bribery and anti-corruption, setting out the measures the Company takes to prevent incidents in its own operations as well as in its supply chain. In particular, the discovery of any evidence of such human rights violations at directly contracted suppliers shall result in immediate action to engage with the supplier and the relevant authorities to understand the circumstances and implement remedial action to help the employees affected and protect them from further harm. Contracts with non-cooperative suppliers shall be terminated, and the cases reported to the responsible law enforcement authority. The Integrity Line introduced in 2023 is an important tool to monitor potential incidents. This whistleblowing hotline enables all stakeholders to anonymously report unethical incidents to Cicor Compliance.

It is integrated into the Cicor structure to further strengthen a sustainable supply chain over the next years. As part of its responsible supply chain management journey, Cicor has an ambitious pathway, aiming to have less than 7% of its suppliers listed as high-risk suppliers for ESG matters and sharing transparency on suppliers within the Cicor structure with more than 90% of the classified suppliers listed as part of the responsible supply chain sustainability assessment.

 

2024 (base year)

2025

2026

2027

2028

2029

2030

High risk

14%

<12%

<11%

<10%

<9%

<8%

<7%

Supplier assessment level

54%

>70%

>75%

>80%

>85%

>87%

>90%

1 Data on suppliers covers all Cicor sites if not stated otherwise as of 31 December 2024.

2 Data of suppliers does not include Nordic Engineering Partners, Sweden.

7.4 Conflict Minerals

A further vital part of the Company’s responsible supply chain management is ensuring the responsible use of minerals and substances, which is key to sustainable development and environmental and social stewardship. Cicor focuses on transparency, risk management, and sustainable supply chain practices. The Company’s strategy is guided by global regulations and frameworks such as REACH, RoHS and the Responsible Mineral Initiative (RMI). As a company Cicor aims for full compliance, promoting responsible sourcing and conducting regular audits to verify adherence.

The Company maintains an inventory of substances, assesses risks, and engages suppliers to ensure regulatory alignment. An enhanced measure of due diligence is required for the so-called conflict minerals tin, tantalum, tungsten and gold, known by their initials as 3TG. Cicor can be generally defined as a downstream actor with limited leverage on actors in the deeper 3TG supply chain. As part of its compliance management system, the Cicor Group implemented a guideline regarding substances and materials of concern. In addition, responsible sourcing was added to the Company’s Business Partner Code of Conduct.

Cicor is starting its first due diligence program, together with the Company’s external provider Integrity Next, with the Company’s supplier compliance screening approach for environmental, social and governance topics. The Company plans to further strengthen its approach in 2025, evaluating high-risk suppliers specifically linked to conflict minerals, aiming to ensure alignment to the Company’s standards and values.

In 2024, 224 suppliers took part in the Company’s questionnaire regarding conflict minerals. 12 of these suppliers have been evaluated as potential high risk for conflict minerals or non-conformity regarding gold smelters / refiners (related to the covered countries or the Middle East). The high-risk suppliers are closely monitored, and respective actions are taken as part of the Cicor improvement journey.

Category

Suppliers screened

% of total suppliers

Suppliers with high risk

% of suppliers screened

Target % of total suppliers

Target % with high risk

3TG

445

18%

12

3%

30%

<10%

Cobalt & mica

231

10%

19

8%

30%

<10%

_ Data on suppliers covers all Cicor sites if not stated otherwise as of 31 December 2024.

_ Data of suppliers does not include Nordic Engineering Partner, Sweden.

Cicor aims to improve its screenings along conflict mineral topics over the course of 2025 by creating respective measures amongst its most important suppliers covering above 30% of its supply chain, aiming to a high-risk level of below 10% among existing suppliers.

Nach oben