The Group relies on the contribution of more than 6,900 businesses located in more than 15 countries throughout the world to carry out its own activities. These provide essential goods and services for Brembo’s industrial processes.
During 2023, the total number of raw materials, components, materials and auxiliary production services processed and integrated in Brembo products generated a purchasing value of more than €2,442 million, in addition to about €317 million for machinery and industrial plant.
VALUE OF SUPPLIES BY GEOGRAPHICAL AREA (€)
| 2021 | 2022 | 2023 | |
|---|---|---|---|
| Europe | 87% | 86% | 90% |
| North America | 83% | 85% | 87% |
| South America | 99% | 100% | 99% |
| Asia | 96% | 96% | 97% |
Responsible supply chain
For Brembo, supply chain management is a priority and is essential to ensuring responsible supplies, with a focus on environmental protection and the rights of workers and local communities. For this reason, the Group asks for its model of conduct to be shared and applied also by its supply chain. These principles and values are at the basis of the supplier selection and were formally defined within the Sustainable Procurement Policy. Through this document, that as of 2022 integrates and supersedes the Supplier Code of Conduct and the Procurement Policy, Brembo brings together the new regulations, but, above all, it intends to accompany its suppliers towards an increasingly sustainable business. This Policy is broader in scope: it contains the codes of conduct that suppliers are required to apply and urges responsible, sustainable conduct, far beyond mere compliance with rules and codes.
This policy was distributed to the main global Brembo suppliers, which are required to sign it and abide by it. It includes verification and audit programmes, monitoring, training sessions and corrective measures to support suppliers in a collaborative manner.
Over the years, the Group has thus established a structured supplier management process that seeks to promote the development of stable relations with its partners, as well as ensuring continuous innovation and improved quality and sustainability throughout the industry.
This process is structured into three main phases:
- Clear communication of the standards that Brembo expects from its business partners in terms of product and service quality, respect for human rights and employee protection and, more generally, attention to ESG issues.
- Assessment of suppliers’ capacity to meet ESG-related technical specifications and requirements both during the qualification phase and during the business relationship and monitoring of the risk relating to supply.
- Providing suppliers with support to continually improve their own performance and strengthen their ability to innovate.
New supplier selection and assesment
In 2023, 6 new suppliers were selected and activated taking account of environmental and social criteria, through the completion of the pre-assessment questionnaire. They account for 5.36% of the candidates who qualified as new Brembo suppliers in 2023. In addition to the new suppliers falling within the above characteristics, Brembo also subjects to a sustainability assessment all suppliers that become relevant during the year. “Relevant suppliers” are those that belong to certain product categories or that conduct business with Brembo that exceeds specific thresholds for each Group company.
Brembo has defined a structured process for the assessment and approval of new suppliers. The first phase of the process involves inviting suppliers to register with Brembo’s Supplier Portal and asking them to complete a pre-assessment questionnaire (the questionnaire is also available online on the website https://www.brembo.com/en/company/suppliers/criteria-for-selection).
This first analysis phase enables Brembo not to establish commercial relationships with suppliers who do not comply with the minimum requirements and allows it to identify in advance any critical issues regarding new potential suppliers and to implement corrective actions accordingly. The questionnaires are analysed by the Purchasing, Administration & Finance, Quality & Corporate Social Responsibility Global Central Functions (GCFs) with the aim of assessing the operating, financial and sustainability risk profiles. Once the pre-assessment phase is concluded positively, all potential suppliers of direct materials receive onsite visits from the Quality Global Central Function to check that the quality and process requirements are met effectively. Once the approval process has been completed, the supplier becomes part of the supplier base to which Brembo can award orders. The assignment of a specific supply takes place by benchmarking the various offers received on the basis of the following assessment criteria:
A. Compliance with technical specifications
B. Technological and innovation capabilities
C. Quality and service
D. Economic competitiveness
Alongside the existing ESG governance already in place, in 2023 more than 350 direct and indirect suppliers were invited to register on a digital platform managed by an external provider to complete an ESG assessment questionnaire. This questionnaire is based on the SAQ 5.0 model defined as part of the Drive Sustainability initiative promoted by the major global players in the automotive industry and allows Brembo to adhere to the sustainability guidelines of the reference supply chain of which it is part, while also promptly complying with emerging regulations and with the most consolidated international standards regarding sustainability due diligence.
In the future, this activity will allow Brembo to extend the process to all new potential suppliers of relevant categories and to monitor suppliers’ performances over time.
* This includes the costs of purchasing goods and services directly involved in the manufacturing of finished products, namely purchases of: raw materials, components, semi-finished and finished products, ancillary materials and services (mostly transport, utilities, packaging and MRO). The scope of analysis was expanded to also include the provision of services not closely associated with production, such as the costs of ICT and telephony, cleaning, security and canteen services. Tax and legal advice, insurance, sponsorships, business travel, recruitment and training activities, building leases and industrial assets are excluded.
