Responsible Supply Chain Management

Metlen, aiming to create a responsible supply chain that embraces the principles of the UN Global Compact (UNGC) and contributes in practice to the achievement of the Global Sustainable Development Goals, developed the digital platform: Metlen Responsible Supply Chain Platform, through which it collects, evaluates, and verifies information on the ESG performance of its supply chain, on an annual basis.

The participation of Metlen suppliers in the evaluation process requires the creation of a unique account at the following link https://responsiblesupplychain.metlen.com/, to enter the basic data and then complete the questionnaire on Environmental, Social & Governance issues.

Issues involved in the ESG Assessment process

Below are the steps of the evaluation process:

1. Questionnaire completion: Recording of general information / data of the supplier Company and provision of answers to a specific number of questions, along with data and documentation on its performance on Environmental, Social, Governance issues. It is noted that the system enables the evaluated Supplier Companies to provide answers and relevant documentation only to those questions related to issues that they themselves recognize as important. All questions of the questionnaire have the same evaluation weight, receiving the maximum score for each answer that is fully and properly documented or the lowest score for each answer that is either not covered or partially covered, reflecting the low level of maturity of the supplier on specific ESG issues.
2. Data check: Check the completeness and correctness of the answers, considering the submitted data/documents. The result of the audit is either the confirmation, which is reflected as "Successful Completion" and then leads to the evaluation of the submitted data/documents, or the rejection in case of detection of incorrect data/evidence or inaccurate data that is reflected as "Unsuccessful completion". In this case, the Company-supplier is informed about the need to reconnect to the digital evaluation platform, to make the necessary corrections and submit the correct data/documents, so that the audit process can then be successfully completed. It is noted that the audit process is a formal process in which the level of maturity of the participating company in ESG is not judged issues evaluated.
3. Supplier evaluation and classification: After the completion of the audit by the competent executives of Metlen, each participating Company-supplier collects a score based on its maturity and its management approach in managing specific issues that it recognizes as important according to its industry and geographical area of activity, as well as its cooperation framework with Metlen. Then, based on its score, each Supplier Company is classified in one of the following five risk categorizations:

4. Feedback & Response: The Purchasing/Procurement departments of the Business Sectors and subsidiaries of Metlen have access to the digital application and are informed about the evaluation results (final rating & supplier ranking). For those Companies-suppliers classified in the grades "Medium", "High" & "Serious Risk", an internal consultation with the Central Service for Sustainable Development takes place, recognizing the need to improve their level of maturity regarding the management of ESG issues related to their activity, with the main aim of strengthening them and the continuous continuation of cooperation with Metlen. The result of the consultation is the creation of a tailor-made for each Company-supplier of an adjustment plan, consisting of proposed corrective actions to improve their ESG performance, considering the size and activity of each company, as well as objective factors related to the business sector. This is followed by the stage of consultation with these Supplier Companies regarding the implementation of corrective actions and the time horizon for their completion, to reach a mutually relevant agreement.
5. Process completion: Regular communication between Metlen and suppliers to monitor the implementation of adjustment/improvement plans and related corrective actions, resolve any concerns and monitor compliance with schedule. In accordance with the Company's Responsible Supply Chain Policy, Metlen undertakes to terminate its cooperation or exclude suppliers from concluding contracts in case of their failure to meet the minimum ESG requirements within the mutually agreed time frame, while in any other case the supplier is included in Metlen' register of key suppliers who meet the ESG criteria.

Below are the benefits that arise for suppliers through their participation in the ESG assessment process:

1. Integrating sustainability into the Strategy

• Adopt sustainable practices that at least ensure labor and environmental regulations and standards, avoiding possible sanctions and/or legal disputes
• Ensuring social license to operate through the implementation of sustainable practices that meet the demands of stakeholders

2. Management of impacts, risks & opportunities

• Identify and understand business-related sustainability, environmental and human rights impacts
• Proactive management of business risks and opportunities related to environmental, social and governance issues

3. Competitive advantage

• Improving accessibility opportunities to new markets/new customers focused on sustainability and responsible business conduct
• Maintain and strengthen long-term partnerships with existing clients who introduce ESG criteria in the evaluation of their commissions

4. Improving maturity level

• Process optimization and appropriate utilization of resources to achieve sustainability goals, leading to reduced operating costs, increased business efficiency and overall creation of shared value
• Commitment to implementing best practices on environmental, social and governance issues through innovative partnership and accountability approaches
• Ability to compare its performance and ranking in relation to the average of the other evaluated companies/suppliers in the same industry

Read here about the policy

METLEN, in cooperation with an independent inspection and certification body, conducts online and on-site audits of suppliers that have successfully completed the ESG assessment through the METLEN Responsible Supply Chain platform. The audits are carried out in accordance with ISO 17029:2019 and ISO 19011:2018 standards and aim to ensure the reliability and objectivity of both the assessment process and its outcomes, while enhancing transparency and the continuous improvement of the responsible supply chain. Within the framework of these audits, tailored improvement action plans are developed for each supplier, including targeted recommended actions in areas requiring further strengthening. These action plans are agreed upon with the suppliers, ensuring the monitoring and effective implementation of the agreed actions by both parties. Through this approach, METLEN actively contributes to enhancing the maturity level of its key suppliers, effectively promoting the creation of shared value in practice.