ÖBB Annual Report 2023

Group Management Report 136 Österreichische Bundesbahnen-Holding Aktiengesellschaft Consolidated Financial Statements | Group Management Report 91 G.6. Sustainable Procurement Management approach Economic and ecological criteria as well as social principles determine ÖBB’s purchasing strategy as a foundation for shaping the mobility of tomorrow. For ÖBB, sustainability is an integral element of its procurement strategy. ÖBB wants to make a substantial contribution to shaping a sustainable and secure future with a stronger focus on ecological sustainability (green procurement) and security of supply in purchasing. As a result, they also want to fulfil their role as a role model and important client for Austria as a business location. ÖBB takes social principles and ecological criteria into account when procuring services and products. These are incorporated into tender components in a customised and legally compliant manner. The ÖBB Toolbox provides the basis for this and contains a legally verified selection of sustainability criteria. The evaluation of tenders is predominantly based on the best bidder principle rather than the lowest bidder principle. In addition, the TCO-CO 2 model offers the possibility to consider not only the total costs (Total Cost of Ownership or TCO) but also the CO 2 emission costs over the entire life cycle. Representatives from all lead buyer companies work in the cross-company “Sustainable Procurement” team. They ensure the continuous development of the framework conditions, for example by providing training courses, frameworks and guidelines. The team members also support buyers in the realisation of innovative, sustainable tenders. The Code of Conduct for Suppliers regulates important ethical principles in the cooperation with ÖBB and covers topics such as “human rights”, “environmental protection and climate change mitigation” and “diversity”. The code requires acceptance by the suppliers in ÖBB’s own purchasing system ProVia before the co-operation. ÖBB also utilises external CSR ratings for strategic suppliers to manage risks along the supply chain. In 2023, 62% of the procurement volume was sourced from suppliers with an external CSR rating. Since 2021, it has also been possible to be classified via ÖBB’s own questionnaire. This free option is particularly suitable for small and medium-sized enterprises. The questionnaire is currently being revised and will be adapted to the new legal developments. In addition, ÖBB companies conduct risk-based supplier audits that are continuously developed and adapted to new requirements. ÖBB Purchasing is involved internationally in railway industry initiatives such as “Railsponsible” or the “European Railways Purchasing Conference (ERPC)” for standardised, high-quality and sustainable procurement processes. GRI 2-6, 2-22, 2-24 Objectives – ÖBB uses a wide range of sustainability measures vis-à-vis suppliers to provide important impetus to encourage and support suppliers on their path to greater sustainability. Such measures include the use of the TCO CO 2 model, the code of conduct for suppliers and the sustainability assessment. – As chair of the “Railsponsible” initiative and the “European Railways Purchasing Conference” (ERPC), ÖBB also wants to make a significant contribution to making the entire rail industry supply chain more sustainable. The resulting transnational standardisation offers advantages for small and medium-sized enterprises in particular, making it easier for them to gain access internationally. – With the help of additional tender criteria that cover specific sustainability topics, ÖBB intends to actively promote its strategic goals towards a sustainable future. Examples of this are climate neutrality and recycling management. Key figures at a glance 2023 2022 Order volume in EUR billion per year 4.35 3.95 Number of creditors 9,673 9,350 Order volume from contractors based in Austria in per cent GRI 204-1 75.7 80.5 Procurement volume assessed for sustainability in per cent GRI 414-1 62 53 | MR91