Technologies and Innovations for Energy Transition and Decarbonization

Responsible Supply Chain

Achieve sustainable growth fundamentally depends on the ethical conduct in operations and in the relationship with stakeholders. Among them, the supply chain is highly relevant for WEG in its direct impact on the business and in the impact and influence that WEG has in its chain. As business partners, suppliers are encouraged to grow with the company.

In this context, the following practices adopted by WEG stand out:

• Valuing of local suppliers.
• Development of suppliers.
• Technological exchange.
• Periodic audits.
• Online communication system (allowing suppliers to view schedule of components and deliver the materials directly to the company's central stockroom).
• Relationship with service providers (training and awareness of safety and environmental aspects so as to ensure that they perform their activities safely within the regulations in force).
• Development, selection, and evaluation of suppliers based on Sustainability criteria: 100% of new suppliers are selected based on social, environmental and economic criteria through a sustainability assessment form. Strategic suppliers also fill out the form, which assesses requirements related to environmental management, occupational health and safety and social responsibility. The assessment generates a performance result, which allows verifying whether they are in compliance with those requirements or if they need an improvement plan to became a WEG supplier. (GRI 308-1 / 414-1)
• Semi-annual communication with suppliers on aspects of sustainability, continuous improvement and good management practices in order to communicate and encourage their adoption of the ESG agenda.

In 2023, WEG launched the WEG Sustainable Suppliers Program, an important step to ensure continuous evolution in the relationship with the company's suppliers, as well as its management of risks and opportunities. Addressing this program will help WEG to be a strong partner in the journey towards the sustainable development of its suppliers. As a way of engaging buyers in Sustainability themes, 26 employees from the Supply and Global Procurement Departments participated in the Sustainability meeting with the themes: Sustainability as a competitive differentiator, Sustainability and Social Investment Policy and Carbon Neutral Program. 

In 2024, continuing the WEG Sustainable Suppliers program, the course was held: Fundamentals of Sustainable Purchasing – ISO 20400, in which 31 employees from the Supply areas participated.

Restricted Substances 

In order to reduce the use of restricted substances in our processes and products, we created the WEG Restricted Substances List, which undergoes periodic updates and is in line with the main national and international regulations. This list is used in different stages of WEG processes, such as the manufacture of products and packaging, the development of new materials and, mainly, with suppliers of raw materials, components and inputs.

Our Restricted Substances List is also present in the Supplier's Code of Ethics and in the Supply Agreements of our supply chain, showing the importance of the subject within the company.

In line with the interests of the company, our suppliers are committed to delivering their products to us in accordance with this list. In view of the issue of restricted substances, WEG is commited to ensuring its products are free of conflict minerals and consequently, do not finance armed conflicts.