Reporting 2021

Sustainable Supply Chain

We provide highly complex services for our customers, and in doing so operate along global supply chains. The Company Profile section describes our portfolio in detail. We also coordinate the entire supply chain and establish integrated logistics chains, which we also manage – across the entire value creation process, especially in the areas of project and process management, technology, IT and quality. In this, we predominantly work with products and components provided by our customers. This means our ability to influence upstream processes is often limited.

Wherever we can set benchmarks ourselves, we do so in compliance with sustainable standards. This applies particularly to our contract awarding and purchasing processes, for example, which are managed by our central Purchasing department, and encompass more than 100 material categories. The focus here is also on energy efficiency, which alongside quality, price and delivery times is a central criterion in the procurement of lighting systems and forklift trucks, for example. Our main procurement markets are located in Germany and neighboring EU countries with corresponding sustainability standards.

The coronavirus pandemic and the prevailing situation in Eastern Europe place continued pressure on global supply chains. As a consequence, we are still experiencing longer delivery times for certain goods. On the other hand, the drastic rise in raw material prices at the end of the year has made energy procurement much more expensive, and no reverse trend is currently foreseeable.

Clear requirements define the framework

We transparently disclose to our customers how we meet our ethical, social and environmental responsibilities. We expect the same of our suppliers and intend to incorporate the relevant aspects even more explicitly into our selection in the future. Only like this can we systematically implement sustainability in the supply chain. Our requirements with regard to environmental and social responsibility as well as ethical business conduct are set out in our Supplier Code of Conduct, which came into force in fall 2021. It goes without saying that we comply with the statutory provisions governing the treatment of employees, occupational safety and environmental protection. We also expect appropriate measures to be taken to reduce the impacts of business activities on people and the environment. Our suppliers are responsible for ensuring that their subcontractors also comply with the requirements. Employees in Purchasing have received and continue to receive comprehensive training on the criteria set out in the Supplier Code of Conduct. www.blg-logistics.com/en/general-terms- and-conditions

Systematic supplier evaluation as a control element

To enable us to meet our self-imposed requirements, we continuously review the relevant supply chains. In order to systematically document and process the necessary information, we have evaluated our suppliers since 2016 according to a dedicated schema. Based on a comprehensive catalog of questions, we record criteria such as pricing, quality, delivery time, environmental protection, sustainability and communication. This enables us not only to identify weak points and risks, but also to discover potential. We then use these insights to determine measures that effectively iron out any shortcomings in terms of quality or cooperation.

Suppliers are selected on the basis of their relevance to our business and the volume of orders. We place a particular focus on key procurement areas from the fields of intralogistics, major capital expenditures and consumer goods. The evaluation is always carried out in cooperation with the responsible locations. We share the findings with the suppliers concerned and they also flow into our procurement strategies and supplier management. For face-to-face supplier meetings, we are now increasingly relying on digital formats. The process is completed without further action on our part if there are no complaints, which applied to all evaluations in the reporting year. If, on the other hand, we identify a need for change or optimization, we define steps with the supplier for their own or active development. We terminate the relationship with suppliers that are unable to meet our requirements, also in the longer term.

Implementation of the Sustainable Development Goals

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