Our Obligations Along the Supply Chain

NORD Drivesystems semi with trailer

The NORD DRIVESYSTEMS Group has been implementing the Supply Chain Act since 2023. We want to reassure our customers and all our colleagues that our products are made with raw materials and components from sustainable production and that it goes without saying that our partners along the supply chain are also committed to human rights.

Supply Chain Act (LkSG)

NORD Obligations Along the Supply Chain

The Act on Corporate Due Diligence Obligations in Supply Chains (LkSG) has been in force since January 1, 2023. This law is intended to make compliance with human rights in the supply chain mandatory. One element of this is defined due diligence obligations.

Since 2023, the law initially applied to companies with at least 3,000 employees. Our global corporate headquarters, Getriebebau NORD GmbH & Co KG, with 1,670 employees in Germany would not be obligated to comply with the law until 2024, but is aware its importance and is already taking responsibility this year.

As a globally active, family-run company, NORD is aware of the influence and impact that our business activities have on society and are intensively engaged with the topic of Corporate Social Responsibility (CSR). This means voluntarily taking responsibility for social, ecological, and economic aspects both locally and internationally.

With our many international ties, NORD recognizes its special responsibility to work towards improving worldwide human rights along our supply chains and to shape business relationships for sustainable development. Increasing integration into global procurement and sales markets often poses risks due to the lack of transparency, and there is often inadequate enforcement of internationally recognized human rights regulations within supply chains.

NORD commits to respect, protect, and uphold the human rights of every individual. This includes fair wages, appropriate working conditions, and preventing the exploitation of children. Equality between women and men is a matter of course for us and we do not discriminate against anyone because of their gender, ancestry, ethnicity, language, home country and origin, religion, religious or political views, or disability. We reject corruption as well as forced labor and human trafficking.

We expect our suppliers and employees in all areas of the company and subsidiaries to respect, protect, and comply with the human rights of each individual. Both within our business operations and throughout the supply chain, it shall be ensured that human rights and environmental violations are prevented and that those affected have access to remedy.

NORD strongly stands for these guidelines and teaches our employees to live up to these values. This begins with conscious perception and identification of violations of these principles, followed by prompt action via defined processes for appropriate resolution. This also applies to information from third parties.

A whistleblower system has been set up to report statutory violations, legally abusive behavior, and any other infringements of the law.

We prepare a constantly updated, IT-supported risk analysis that is based on country indices and the 13 risk fields of the LkSG.

A human rights officer has been appointed to monitor and report findings to NORD’s management at least once per financial year. In the event that the analysis shows violations of a human rights or environmental obligation, possible remedial actions are defined, and corresponding steps are taken to eliminate them.

NORD also commits to encourage our supplies to comply with the contents of this policy and promote scope for action as far as possible in the value creation chain. We also reserve the right to verify that our suppliers observe our Code of Conduct, which is binding and may take the form of periodic questionnaires, assessments, or audits. If doubts arise regarding compliance with this policy, suppliers are requested to take appropriate countermeasures and report the case to their relevant contact in our company.

Find further information on our Company Policy and Code of Conduct.

Learn more in this video from the Federal Ministry of Labor and Social Affairs.

As a globally active family business, we are aware of the influence and impact that our business activities have on society. Therefore, we are intensively engaged with the topic of CSR.

Excerpt from NORD DRIVESYSTEMS’ statement of principles according to LkSG

Material Compliance

The Act on Corporate Due Diligence Obligations in Supply Chains (LkSG) has been in force since January 1, 2023. This law is intended to make compliance with human rights in the supply chain mandatory. One element of this is defined due diligence obligations.

Since 2023, the law initially applied to companies with at least 3,000 employees. Our global corporate headquarters, Getriebebau NORD GmbH & Co KG, with 1,670 employees in Germany would not be obligated to comply with the law until 2024, but is aware its importance and is already taking responsibility this year.

As a globally active, family-run company, NORD is aware of the influence and impact that our business activities have on society and are intensively engaged with the topic of Corporate Social Responsibility (CSR). This means voluntarily taking responsibility for social, ecological, and economic aspects both locally and internationally.

With our many international ties, NORD recognizes its special responsibility to work towards improving worldwide human rights along our supply chains and to shape business relationships for sustainable development. Increasing integration into global procurement and sales markets often poses risks due to the lack of transparency, and there is often inadequate enforcement of internationally recognized human rights regulations within supply chains.

NORD commits to respect, protect, and uphold the human rights of every individual. This includes fair wages, appropriate working conditions, and preventing the exploitation of children. Equality between women and men is a matter of course for us and we do not discriminate against anyone because of their gender, ancestry, ethnicity, language, home country and origin, religion, religious or political views, or disability. We reject corruption as well as forced labor and human trafficking.

We expect our suppliers and employees in all areas of the company and subsidiaries to respect, protect, and comply with the human rights of each individual. Both within our business operations and throughout the supply chain, it shall be ensured that human rights and environmental violations are prevented and that those affected have access to remedy.

NORD strongly stands for these guidelines and teaches our employees to live up to these values. This begins with conscious perception and identification of violations of these principles, followed by prompt action via defined processes for appropriate resolution. This also applies to information from third parties.

A whistleblower system has been set up to report statutory violations, legally abusive behavior, and any other infringements of the law. You can learn more about this system here.

We prepare a constantly updated, IT-supported risk analysis that is based on country indices and the 13 risk fields of the LkSG.

A human rights officer has been appointed to monitor and report findings to NORD’s management at least once per financial year. In the event that the analysis shows violations of a human rights or environmental obligation, possible remedial actions are defined, and corresponding steps are taken to eliminate them.

NORD also commits to encourage our supplies to comply with the contents of this policy and promote scope for action as far as possible in the value creation chain. We also reserve the right to verify that our suppliers observe our Code of Conduct, which is binding and may take the form of periodic questionnaires, assessments, or audits. If doubts arise regarding compliance with this policy, suppliers are requested to take appropriate countermeasures and report the case to their relevant contact in our company.

You can find further information on our Company Policy and Code of Conduct.

The REACH regulation was issued by the European Union to improve protection of human health and the environment against the risks that can be posed by chemicals. (Regulation concerning the Registration, Evaluation, Authorization and Restriction of Chemicals)

The RoHS Directive is also an EU regulation that controls and restricts the use of hazardous substances in electrical and electronic equipment. The aim is to reduce and limit the input of these substances as pollutants into the environment and at the same time reduce exposure to humans during the manufacturing and recycling processes. (Restriction of Certain Hazardous Substances)

Download Manufacturer's Declaration on the REACH Regulation

The Conflict Minerals Reporting Template (CMRT) was developed by the Responsible Minerals Initiative (RMI) to help companies provide their customers with accurate information on the country of origin of minerals and the smelters and refineries they use.

Conflict minerals in this context refer to raw materials that contribute to the financing of violence and human rights violations in the producing countries; this is to be curbed through the implementation of the EU regulation.

PFAS are a group of industrial chemicals that includes a very large number of substances. They are organic compounds in which the hydrogen atoms are completely ("perfluorinated") or partially ("polyfluorinated") replaced by fluorine atoms. Due to their special properties, they have been widely used for a long time in many industrial sectors and also in the household.

The best-known substance groups of PFAS are:

  • Perfluorinated sulfonic acids (best known representative: perfluorooctane sulfonic acid (PFOS))
  • Perfluorinated carboxylic acids (best known representative: Perfluorooctanoic acid (PFOA)).

On 07.02.2023, ECHA pre-published the restriction dossier on the broad restriction of per- and polyfluoroalkyl substances (PFAS).

As a responsible company, we take this issue very seriously. We keep ourselves informed about current developments in this area, among others through the VDMA and ZVEI associations. As soon as the REACH Regulation (EC) 1907/2006, a European chemicals regulation, is updated and PFAS are included in the candidate list as substances of very high concern, we will take appropriate action and live up to our responsibility.