GRI 2-6: Activities, value chain and other business relationships GRI 3-3: Management of material topics GRI 308: Supplier Environmental Assessment 2016 GRI 408-1: Operations and suppliers at risk for child labor GRI 414: Supplier Social Assessment 2016
As is typical in the high-tech sector, Cicor’s supply chain is complex, global, and multi-tiered. In an environment increasingly shaped by geopolitical tensions, regulatory developments, and market volatility, proactive and transparent supply chain management is essential. In 2025, the Company procured a broad variety of goods and services, which requires structured oversight to assess risks and ensure compliance across all levels of the supply chain.
Geopolitical risks, trade restrictions, sanctions regimes, and regional instability can significantly impact supplier reliability, ethical standards, and operational continuity. Additionally, ethical and social risks such as child labour, forced labour, human trafficking, corruption, conflict financing and environmental exploitation can result in severe legal, financial, and reputational consequences. Addressing these risks is therefore a strategic priority and an integral part of Cicor’s Compliance and ESG Strategy.
‘Cicor strengthens the resilience and stability of its global supply chain through transparent, responsible, and ESG-integrated procurement processes, creating sustainable added value for customers, partners, and society.’
Gabriella Scherrer - Di Matteo
VP Strategic Sourcing
Transparency across the supply chain is viewed as a strategic driver for responsible growth and resilience. To strengthen transparency and risk awareness, Cicor implemented a standardised compliance assessment in 2023, which was expanded and further improved in 2024 and 2025. This approach includes a defined pathway for responsible supply chain management by 2030 and supports the alignment between strategic sourcing, ESG requirements, and enterprise risk management.
Cicor’s supply chain structure spans Europe, Asia, and North America, reflecting its diversified operational footprint and customer base. This international setup enhances flexibility and resilience, while reducing dependency on single markets or sourcing regions.
The Group follows a structured risk-based approach to supply chain management, systematically assessing geopolitical, regulatory, environmental, and social risks. Suppliers are evaluated based on defined ESG and compliance criteria, with particular focus on critical components and high-risk regions.
Transparency is a key element of this approach. Cicor continuously strengthens supply chain visibility through structured supplier assessments, monitoring processes, and close collaboration with key partners. Responsible sourcing principles guide procurement decisions, ensuring adherence to ethical standards, human rights requirements, and environmental expectations across the value chain. Through this integrated framework, Cicor aims to secure reliable supply flows while upholding high standards of integrity and sustainability.
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
_Data on supply chain structure covers all Cicor sites if not stated otherwise.
The baseline of Cicor’s responsible supply chain management is a standardised, three-step compliance screening process. This process enables systematic identification, assessment, and monitoring of ESG-related risks, including geopolitical exposure and country-specific risk factors. Every new supplier undergoes a basic compliance check prior to onboarding, and suppliers are classified according to region, spend, criticality, and relevance, resulting in a classification matrix of A, B and C suppliers. Suppliers are classified as A, B or C if they meet at least one of the defined criteria in the respective category. Always the highest classification standard applies. To implement responsible sourcing consistently, Cicor established clear guidelines defining stakeholder engagement, supplier monitoring, and escalation mechanisms. Suppliers classified as A or B are required to conduct ESG self-assessments covering environmental, social, and governance criteria. Where risks or gaps are identified, Cicor engages with suppliers to implement corrective actions and improvement measures.
Classification
Spend
Criticality
Relevance
2025
2024
A suppliers
above CHF 500 000
Human life endangered
Customer request / important player
34%
36%
B suppliers
above CHF 100 000
Product failure
Exchange possible
62%
62%
C suppliers
below CHF 100 000
Not part of a manufacturing process
Local support / services
4%
2%
_Data on supply chain structure covers all Cicor sites if not stated otherwise.
Cicor collaborates with its partner, IntegrityNext, to actively screen and monitor suppliers against national and international regulations and sustainability expectations. The Company’s Business Partner Code of Conduct is based on internationally recognised standards, including the ILO conventions, the United Nations Declaration of Human Rights, and the OECD’s (Organisation for Economic Co-operation and Development) Guidelines for Multinational Enterprises. These standards are aligned with Cicor’s core values and are embedded in the Company’s procurement and supplier management processes.
In 2025, Cicor further improved its screening approach, increasing the assessment level of suppliers to 70%, compared to 54% in 2024. Suppliers have been screened in multiple categories, with a clear focus on social and environmental topics.
No. of total suppliers
% of total suppliers
Suppliers screened for environmental topics
1 560
55%
Suppliers with potential negative impact for environmental topics
241
9%
Suppliers with significant negative impact for environmental topics
36
1%
Suppliers blocked or phased out due to negative environmental impacts
0
0%
Suppliers screened for social topics
2 825
100%
Suppliers identified having a potential negative social impact
119
4%
– Suppliers identified having a potential negative social impact for human rights
29
1%
– Suppliers identified having a potential negative social impact for child labour
24
<1%
– Suppliers identified having a potential negative social impact for health and safety
25
<1%
– Suppliers identified having a potential negative social impact as relates to bribery and corruption
15
<1%
Suppliers blocked in 2025 for reasons other than shared above (e.g., sanction lists)
3
<1%
_Data on supply chain structure covers all Cicor sites if not stated otherwise.
Transparency also plays a critical role in Cicor’s engagement with stakeholders. The Company discloses sourcing practices, risk management approaches, and progress openly and uses the insights gained to continuously improve its responsible sourcing framework. The Integrity Line, introduced in 2023, enables employees, suppliers, and other stakeholders to report potential misconduct, human rights violations or non-compliance anonymously.
By embedding ESG considerations, geopolitical risk awareness and transparency into strategic sourcing and supplier management, Cicor strengthens supply chain stability, mitigates risks, and supports responsible business conduct. This approach enhances trust, safeguards human rights, and contributes to sustainable, long-term value creation in an increasingly complex global environment.
5.1Sanctions, Export Control, and Geopolitical Risk Management
Geopolitical developments, sanctions regimes, and export control regulations are recognised as material risks for Cicor’s global operations and supply chain in 2025. Sanctions and export control considerations are integrated into supplier assessments, business partner due diligence, and procurement decision-making.
Cicor actively monitors regulatory developments and implements mitigation measures where risks are identified. These measures include enhanced due diligence, contractual safeguards, and, if required, termination of business relationships. This approach supports legal compliance, operational continuity, and protection of the Company’s reputation.
5.2Conflict Minerals and High-Risk Materials
GRI 408-1: Operations and suppliers at risk for child labor
Cicor recognises the risks associated with sourcing minerals from conflict-affected and high-risk areas, where extraction and trade may contribute to armed conflict, human rights violations or corruption. Conflict minerals risk management is integrated into supplier screening, transparency requirements, and engagement processes. Suppliers are expected to provide information on the origin of relevant raw materials, and to comply with applicable legal requirements and internationally recognised due diligence frameworks. Where potential risks are identified, Cicor engages with suppliers to implement corrective actions. Persistent non-compliance or unwillingness to address material risks may result in escalation measures, including disengagement.
Suppliers screened
2025
% of total suppliers
2025
Suppliers with high risk
2025
% of suppliers screened
2025
Target %
of total suppliers
2026
Target % with high risk
2030
3TG
311
11%
11
6%
15%
<10%
Cobalt & mica
311
11%
8
6%
15%
<10%
_Data on supply chain structure covers all Cicor sites if not stated otherwise.
5.3Customer Value Creation Through Responsible Sourcing
GRI 201-1: Direct Economic value generated and distributed
Responsible supply chain management is a key driver of customer value creation. By embedding ESG criteria, transparency, and risk management into sourcing decisions, Cicor strengthens supply reliability, product quality, and compliance across its value chain.
Customers benefit from reduced supply disruption risks, increased transparency of sourcing practices, and assurance that products are manufactured in line with expectations regarding human rights, labour, the environment, and regulation. Cicor’s approach supports customers in meeting their own sustainability, compliance, and risk management requirements and strengthens long-term partnerships based on trust and reliability.
5.4Continuous Improvement and Long-Term Value Creation
By integrating ESG matters, geopolitical risk awareness, conflict minerals due diligence, and sanctions compliance into strategic sourcing, Cicor enhances transparency, mitigates risk, and strengthens supply chain resilience. This integrated approach supports sustainable value creation for customers, suppliers, and the Company in an increasingly complex global environment.
To ensure effectiveness and continuous improvement, KPIs are defined and systematically monitored across the supply chain. These KPIs track, among other aspects, supplier risk classifications, ESG screening coverage, identified and mitigated risks, compliance with sanctions and export control requirements, and progress against the Company’s responsible sourcing targets.
Cicor regularly reviews these indicators to assess alignment with its responsible supply chain strategy, identify emerging risks, and implement targeted improvement measures where needed.
By linking KPI monitoring to strategic sourcing decisions and risk management processes, Cicor ensures that responsible supply chain management remains outcome-oriented, data-driven, and closely aligned with long-term business objectives.
5.5Supply Chain Targets
Fiscal year 2025
Target
Description
Status
Strengthen supplier screening across all Cicor sites
Supplier onboarding has been improved across all sites including assigning regional leaders to support local sites with process adaption and training.
achieved
Full consolidation Cicor Responsible Supply Chain approach with strategic sourcing
Guidelines and processes in adaption to consolidate and strengthen ISO 9100 sourcing process combined with Responsible Supply Chain Management
in progress
Achieve Cicor Responsible Supply Chain Targets
Risk Level <12%, Assessment Level 72%
achieved
Further strengthen transparency with ESG Scoring controls on Responsible Sourcing including strategic sourcing matters with all sites
Consolidating of processes and implementation of strategic controls to further strengthen transparency and resilience on Cicor supply chain
in progress
Fiscal year 2026
In 2026, Cicor aims to further reduce supply chain risks through enhanced transparency, systematic assessments, and strengthened supplier engagement. A key ambition is to lower the proportion of identified high-risk suppliers to below 11%, reflecting continued progress in risk mitigation and responsible procurement practices.
At the same time, Cicor targets that at least 75% of its suppliers will be formally assessed under the Cicor Strategic Responsible Sourcing Policy. This expanded coverage will improve visibility across the supply chain, enable more consistent ESG risk evaluations, and support the implementation of targeted corrective actions where necessary. Through this structured and data-driven approach, Cicor intends to reinforce supply chain resilience while upholding its standards for responsible and sustainable sourcing.
