4. Depth of the Value Chain

The company states what significance aspects of sustainability have for added value and how deep in the value chain the sustainability criteria are verified.

The BRAIN Group offers many different products and services reaching from contract research services over an own development incubator of impact products to finished products such as enzymes. This products and services are generated within different entities with their individual supply and value chains. 

We buy laboratory and raw materials, utilize these to create our services and manufacturing process up to the finished product.

In our science business we buy laboratory materials and sell scientific services as well as solutions to our customers. Here supply chain management only effects BRAIN directly. We try to employ multi-use products wherever possible and bundle purchasing for reduced logistics impacts.

In our products business we formulate, mix, blend and ferment at larger scale mostly unique enzyme formulations. Here our supplied products become also constituents of the supply chain of our customers. Delivery is focussed on multi-use containers wherever possible and legally allowed.

The material sourcing of the BRAIN group is mostly focussed on highly developed markets and established market players. Hence, while we have a close eye on our supply chain but do not consider supply chain monitoring as a very material topic for the group.

We aspire to build sustainable and stable relationships with our suppliers. We prefer partners and suppliers with high own environmental and social standards.

Information regarding specific supplier violations is reported and investigated directly. If confirmed, an action plan is prepared to mitigate the topics or to search for alternative sources.
Most purchasing decisions are done at the level of the individual operating unit but it is intended to increasingly centralize purchasing especially in the BioIndustrial segment. This will not only unify standards but also allow to increasingly harvest economies of scale.

Close to 90% of our BRAIN Group product sourcing is executed within the EU, UK, US and other developed countries with high labor and social standards. Most of this from large or multinational suppliers. Only around 10 % of our sourced products are originated from emerging markets (mostly China) with the relative share of these purchases decreasing during the last years.
Emerging market sources require our special attention when it comes to supply chain standards.

Biocatalysts utilizes a standardized Supplier Approval Questionnaire (SAQ) for all of its suppliers. The SAQ is also employed for SEDEX (Supplier Ethical Data Exchange) or equivalent certifications. In addition, Biocatalyst enforces supplier risk assessment, approval and monitoring procedures.

WeissBiotech utilizes the EcoVadis rating for its supply chain analysis and scorecard.

Within the framework of the NATRUE certification L.A. Schmitt checks for the sustainable supply of natural raw materials for the production of cosmetics.

In addition to single supplier dialogue we engange on general supply chain topics within our industry associations and industry business partners.

For additional information, please have a look at our sustainability report, page 29. https://www.brain-biotech.com/investors/esg