Three people involved in procurement stand in front of a supermarket, a logistics company and a restaurant.

    Sustainability in procurement: a core responsibility of KfW

    As a bank owned by the German Federal Government and the federal states, KfW Group bears particular responsibility and assumes a role model function when it comes to procurement. The goal is clear: as many products and services as possible should be procured sustainably. Procurement processes are systematically recorded and evaluated according to sustainability aspects. In this way KfW creates transparency and consistently manages procurement in line with future viability.

    Firmly embedded sustainability requirements

    Respect for human rights and compliance with internationally recognised environmental and social standards are at the heart of KfW’s procurement activities. KfW’s procurement team is committed to prioritising the use of environmentally friendly products. These principles are clearly embedded in the Sustainability requirements for KfW Group procurement and are part of KfW’s comprehensive sustainability mission statement. They apply to all KfW Group suppliers. This means that sustainability is not optional, it is a defined standard.

    Actively evaluating environmental and human rights-related risks

    KfW Group expects its suppliers and service providers to act responsibly, consistently respecting environmental and social standards and human rights. Child labour and forced labour are strictly prohibited. Companies are required to have fundamental principles and management systems in place to ensure this requirement is met. Clear contractual stipulations and a regular risk analysis along the supply chain support compliance with these principles. The results are incorporated into the evaluation of strategic suppliers and are used to continuously improve environmental and social standards. KfW considers this process to be dynamic and is constantly adapting it to new requirements.

    Cooperation as partners for sustainable supply chains

    KfW works closely with its suppliers and service providers to further develop environmental and social standards along the entire supply chain. One particular priority is on the measurement and reduction of greenhouse gas emissions, in particular indirect emissions along the value chain (Scope 3). A methodology based on expenditure is currently used to evaluate emissions, with the aim of gathering even more precise, activity-based data in the future. Together with selected suppliers, KfW promotes sustainable practices and active measures to minimise the ecological footprint. Projects and partnership-based cooperation create solutions that not only support KfW’s climate goals, but also provide positive impetus for a more responsible economic system.

    For KfW, sustainability is more than just a buzzword; it is a deeply embedded principle that is consistently implemented in all of our procurement processes. By making this commitment, KfW is actively and responsibly shaping a future-proof and sustainable world – as a pioneer and reliable partner on behalf of the government.

    Key figures and other measures for KfW’s responsible procurement can be found in the Supplementary information on KfW Group’s sustainability commitment.