14. Employment Rights

The company reports on how it complies with nationally and internationally recognised standards relating to employee rights as well as on how it fosters staff involvement in the company and in sustainability management, what goals it has set itself in this regard, what results it has achieved thus far and where it sees risks.

In 2019, the INPACS head office has joined the UN Global Compact and thereby officially committed to making the Ten Principles publicly part of its business operations – this includes in particular that INPACS upholds the freedom of association and the effective recognition of the right to collective bargaining, eliminates all forms of forced, compulsory and child labour and works against the discrimination in respect of employment and occupation.

As the formal basis for this commitment, the INPACS Company Policy, the Code of Ethics and the Supplier Code of Conduct since many years stipulate the adherence to fair labour standards within the network according to the conventions of the International Labour Organisation (ILO) as well as to the Universal Declaration of Human Rights. Above that, each member is responsible for fair labour standards and compliance with labour law according to local conditions. INPACS is in this course not engaging for the implementation of German standards abroad, but for the creation of an international level playing field for sustainable management practices according to the above mentioned global regulation.

Furthermore, there is an intense employee involvement in the sustainability management as the different operational departments lead the respective projects with members, customers and suppliers directly - enabling a sustainability management implemented and practiced by all departments and employees. Accordingly, EcoVadis has attested INPACS again an advanced performance regarding labour and human rights practices. 

On group level, the newly adopted group-wide sustainability strategy (cf. criterion 1) calls on all members to strategically prioritize the „Protection of Labour Rights and Safe and Secure Working Environments within our Operations and along the Supply Chain“. As INPACS is uniting family-owned wholesalers worldwide, common measures affect operations in over 50 countries with over 8.000 employees. Also, INPACS takes on a great responsibility when making agreements with large international suppliers and manufacturers, worldwide. Therefore, the strategic aim is to tackle risks that derive from the responsibility for this international workforce as well as the increased risk of human and labour rights violations along the complex wholesale supply chains. The adopted measures target transparency and the identification of need for action, and include the consistent supervision of members’ and suppliers' compliance with our Ethical Codes. This is already put into action by an obligatory sustainability evaluation using EcoVadis. 

In 2019, the average EcoVadis Theme Score "Labour and Human Rights" of the evaluated INPACS members improved from 54 to 58 points compared to 2017/18.

In case of any uncertainty regarding conformity with the Ethical Codes, a personal inspection is conducted.

15. Equal Opportunities

The company discloses in what way it has implemented national and international processes and what goals it has for the promotion of equal opportunities and diversity, occupational health and safety, participation rights, the integration of migrants and people with disabilities, fair pay as well as a work-life balance and how it will achieve these.

The INPACS Code of Ethics since many years stipulates equal opportunities' principles. They are valid for the head office as well as for INPACS members, and therefore represent guiding principles to all employees within the network. These obligations also apply to INPACS suppliers, which are expected to acknowledge in writing and to adhere to the INPACS Supplier Code of Conduct including the equal opportunities' specifications stated. 

Creating equal opportunities at head office level means in particular, that where possible, we offer our employees flexible working hours, home office solutions and part-time jobs. Also, INPACS offers its employees a fair remuneration above the statutory minimum wage, including vacation and Christmas bonuses, capital-accumulation benefits and contributions to company pension schemes. Furthermore, all employees benefit from regular occupational health checks. Occupational health and safety is part of the integrated management system which corresponds to OHSAS 18001 and is regularly internally and externally audited. 

The newly adopted group-wide sustainability strategy has set a strategic focus on the promotion of Equality and Diversity:
Gender Balance is a fundamental condition for healthy working environments and successful business (SDG 5). Therefore, we promote equal opportunities for all genders in leadership at all levels of decision-making. In order to accelerate impact we will create transparency and a platform for best practice sharing within the members. In 2019, the following milestones have been reached:
  • Gender Balance Survey: We investigated the group-wide gender balance within leadership positions on the basis of a survey, whereby the data of 27 members revealed a female management to male management ratio of 38/62. 
  • Interviews: To learn about contributing market conditions or management practices, interviews with the best performers of the Gender Balance Survey have been conducted.
  • Next step: Realization of best practice member communication regarding the promotion of female leadership, for eg. by the conduction of specific workshops or the development of practical guidelines.
As a worldwide business network, Diversity is part of our DNA. All employees irrespective of sex, skin colour, origin, social background, disability, sexual orientation, political or religious beliefs as well as gender or age shall feel included as well as respectfully treated (SDG 10). To identify need for action, transparency of our employees’ perception concerning inclusion and respectful working climates is crucial. Therefore, a global employee survey will be conducted on a regular basis. The corresponding project start is planned for 2021.

This strategic approach reflects our aim to create transparency and awareness before discrimination cases are being reported.

16. Qualifications

The company discloses what goals it has set and what measures it has taken to promote the employability of all employees, i.e. the ability of all employees to participate in the working and professional world, and in view of adapting to demographic change, and where risks are seen.

For the INPACS network and central organisation, securing equal opportunities and non-discrimination on all levels for all employees is part of our DNA (cf. criterion 15). Since many years, corresponding formal specifications are part of our employee, member and supplier relationships (cf. INPACS Company Policy, Code of Ethics and Supplier Code of Conduct). The strategic goals (cf. criterion 3) include in particular:
As stipulated by the quality management system, new employees in general receive an introduction training regarding the above mentioned codes as well as a health and safety and anti-corruption briefing. The initial training also includes an introductory presentation by each department of the head office as well as visits to selected INPACS members on national and local level.

Every year, the employees are asked to choose training modules according to their individual qualification needs from a specific training catalogue. Also, all employees benefit from regular occupational health checks based on their age. When necessary, the organisation supports changes to job content, ergonomics and work equipment etc.

The results of the international Gender Balance Survey 2019 outlined the need for a systematic promotion of female leadership within the INPACS network (cf. criterion 15). To identify feasible and effective management approaches, a business development manager of the INPACS head office has participated in the exhibition "her career", covering many aspects of a female and familial career planning. Also, in order to learn about contributing market conditions or management practices, interviews with the best performers of the Gender Balance Survey have been conducted. The next step will be to communicate best practices within the network, for eg. by the conduction of specific workshops or the development of practical guidelines.

In the course of INPACS proactive investment in its digital business transformation, flexible and mobile working is enabled for all employees of the head office by providing state-of-the-art laptops, cell phones as well as digital communication and project management tools. A corresponding data security training is regularly conducted by the data protection officer.

To promote an open culture, that enables every employee of the head office to walk new corporate paths due to digitalization and new work models, the INPACS executive management initiated a comprehensive leadership coaching for the management employees, in order to revise INPACS' practiced corporate culture and communication in a participative way.

A systematic qualifications' risk analysis in terms of this criterion 16 has not taken place. Anyway, the results of the employee satisfaction survey conducted at head office in 2020 are indicative for potential improvement. 

Key Performance Indicators to criteria 14 to 16

Key Performance Indicator GRI SRS-403-9: Work-related injuries
The reporting organization shall report the following information:

a. For all employees:
i. The number and rate of fatalities as a result of work-related injury;
ii. The number and rate of high-consequence work-related injuries (excluding fatalities);
iii. The number and rate of recordable work-related injuries;
iv. The main types of work-related injury;
v. The number of hours worked.

b. For all workers who are not employees but whose work and/or workplace is controlled by the organization:
i. The number and rate of fatalities as a result of work-related injury;
ii. The number and rate of high-consequence work-related injuries (excluding fatalities);
iii. The number and rate of recordable work-related injuries;
iv. The main types of work-related injury;
v. The number of hours worked.

You will find the remaining numbers c-g of the indicator SRS 403-9 in the GRI standard and may additionally report them here.


Key Performance Indicator GRI SRS-403-10: Work-related ill health
The reporting organization shall report the following information:

a. For all employees:
i. The number of fatalities as a result of work-related ill health;
ii. The number of cases of recordable work-related ill health;
iii. The main types of work-related ill health.
b. For all workers who are not employees but whose work and/or workplace is controlled by the organization:
i. The number of fatalities as a result of work-related ill health;
ii. The number of cases of recordable work-related ill health;
iii. The main types of work-related ill health.

You will find the remaining numbers c-e of the indicator SRS 403-10 in the GRI standard and may additionally report them here.

279 lost days leading to an illness rate of 3.3 % (-0.2 % compared to 2017).
No injuries at INPACS head office, no work-related fatalities.
 

Key Performance Indicator GRI SRS-403-4: Worker participation on occupational health and safety
The reporting organization shall report the following information for employees and for workers who are not employees but whose work and/or workplace is controlled by the organization:

a. A description of the processes for worker participation and consultation in the development, implementation, and evaluation of the occupational health and safety management system, and for providing access to and communicating relevant information on occupational health and safety to workers.

b. Where formal joint management–worker health and safety committees exist, a description of their responsibilities, meeting frequency, decision-making authority, and whether and, if so, why any workers are not represented by these committees.

100 percent of the workforce is represented in occupational safety committees (ASAs) - by the occupational safety specialist and the safety officer.

Key Performance Indicator GRI SRS-404-1: Average hours of training
The reporting organization shall report the following information:

a. Average hours of training that the organization’s employees have undertaken during the reporting period, by:
i. gender;
ii. employee category.

Average hours of training per employee in 2019: 20,1 (+0,1 hours compared to 2017).

This includes professional education and training hours per employee as well as mandatory regular health and safety instructions and data protection training.
a part from mandatory regular health and safety instructions, employees are supported with individual training based on their job requirements and existing qualifications (e.g. time or personnel management training).
In total, this leads to an average number of over 20 hours of training per employee per year.  

Key Performance Indicator GRI SRS-405-1: Diversity
The reporting organization shall report the following information:

a. Percentage of individuals within the organization’s governance bodies in each of the following diversity categories:
i. Gender;
ii. Age group: under 30 years old, 30-50 years old, over 50 years old;
iii. Other indicators of diversity where relevant (such as minority or vulnerable groups).

b. Percentage of employees per employee category in each of the following diversity categories:
i. Gender;
ii. Age group: under 30 years old, 30-50 years old, over 50 years old;
iii. Other indicators of diversity where relevant (such as minority or vulnerable groups).

Composition of governance bodies and employees
  total female male
Employees  25  13 12 
Managers  3
Fulltime  23  
Foreign background  7  
Age:
Up to 30 years  0  
Between 31 and 55 24   
Older than 55  
Seniority: 
More than 10 years  6  
Up to 10 years  19  

Key Performance Indicator GRI SRS-406-1: Incidents of discrimination
The reporting organization shall report the following information:

a. Total number of incidents of discrimination during the reporting period.

b. Status of the incidents and actions taken with reference to the following:
i. Incident reviewed by the organization;
ii. Remediation plans being implemented;
iii. Remediation plans that have been implemented, with results reviewed through routine internal management review processes;
iv. Incident no longer subject to action.

No incidents of discrimination reported in 2019.
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17. Human Rights

The company discloses what measures it takes, strategies it pursues and targets it sets for itself and for the supply chain for ensuring that human rights are respected globally and that forced and child labour as well as all forms of exploitation are prevented. Information should also be provided on the results of the measures and on any relevant risks.

In 2019, the INPACS head office has joined the UN Global Compact and thereby officially committed to making the Ten Principles publicly part of its business operations (cf. criterion 14).

As the formal basis for this commitment, the INPACS Company Policy, the internal Code of Ethics and the Supplier Code of Conduct since many years stipulate the adherence to labour and human rights standards according to the conventions of the International Labour Organisation (ILO) as well as to the Universal Declaration of Human Rights. By this, all employees, members and suppliers commit to respect fundamental human rights, prevent child labour and secure occupational health and safety.
 
At head office level, the protection of human rights is controlled as part of the integrated management system. The risk of an infringement is systematically assessed as part of the risk assessment for the health and safety of employees, and reduced to a minimum through a variety of procedural instructions, testing processes and training measures. In 2019, EcoVadis has attested INPACS again an advanced labour and human rights performance.

The protection of human rights also is part of the group-wide sustainability strategy (SDG 8). In line with our above mentioned formal commitments, our strategic goal is to protect labour rights as well as safe and secure working environments for all workers within our operations and along the supply chain. The core measure is to supervise compliance with the INPACS Ethical Codes within the network and along the supply chain:

Within the INPACS network, this is operationally implemented by the monitoring of the INPACS‘ members health and safety indicators as well as the labour and human rights performance using EcoVadis. The in 2019 published scorecards by INPACS members reached an average score of 56, showing an improvement by 5 points compared to 2017/18. The average „labour and human rights“ theme score in 2019 amounted to 58, showing an improvement by 4 points compared to 2017/18. As of 2021, all INPACS members will be asked to reach an EcoVadis minimum achievement of silver recognition level (cf. criterion 3), simultaneously promoting the implementation of ambitious labour and human rights standards.

INPACS has also started a sustainability risk assessment of suppliers covering social aspects using EcoVadis in 2019. This evaluation is mandatory for all suppliers, while gradually different supplier groups are approached and evaluated. The results are integrated into the overall risk assessment of the INPACS procurement department as well as into the supplier dialogue in order to promote a cooperative improvement of the sustainability performance. To enable a targeted management, more detailed risk thresholds will be defined in 2020.

In case of the identification of substantial sustainability risks, e.g. by poor evaluation results in the area of labour standards and human rights, a personal on-site audit will be carried out - both at the members' or suppliers' site. 
 
Voraussetzung
für die Zusammenarbeit mit Lieferanten (bestehende und neue) ist zunächst die
schriftliche Bestätigung des igefa Verhaltenskodex (s.o.) als Bestandteil
partnerschaftlicher Verträge, mit welcher der Lieferant unter anderem die
Achtung der Mitarbeitergrundrechte, das Verbot von Kinderarbeit und
Gesundheit und Sicherheit auch im Hinblick auf seine Zulieferkette verspricht.

Key Performance Indicators to criteria 17

Key Performance Indicator GRI SRS-412-3: Investment agreements subject to human rights screenings
The reporting organization shall report the following information:

a. Total number and percentage of significant investment agreements and contracts that include human rights clauses or that underwent human rights screening.

b. The definition used for ‘significant investment agreements’.

100 percent of the strategic and nominated INPACS suppliers have signed the INPACS Supplier Code of Conduct confirming by this the protection of Human Rights according to the Universal Declaration of Human Rights (Resolution 217 A (III) of 10.12.1948). 

The corresponding specifications are also part of the relationships to members, as constituted in the INPACS Company Policy and the Code of Ethics.

Key Performance Indicator GRI SRS-412-1: Operations subject to human rights reviews
The reporting organization shall report the following information:

a. Total number and percentage of operations that have been subject to human rights reviews or human rights impact assessments, by country.

At the time of reporting, 25 INPACS members including the central organisation have published an EcoVadis scorecard, representing 68% of the network and scoring a total average of 52 points (bronze). Human rights and labour standards, especially with regard to the prohibition of child labour, are given particular weight in the evaluation by EcoVadis.

Key Performance Indicator GRI SRS-414-1: New suppliers subject to social screening
The reporting organization shall report the following information:

a. Percentage of new suppliers that were screened using social criteria.

100% of the newly on-boarded suppliers were subject to social screening. 
One new supplier has been evaluated using the EcoVadis platform, five personal factory audits have been conducted. 

Key Performance Indicator GRI SRS-414-2: Social impacts in the supply chain
The reporting organization shall report the following information:

a. Number of suppliers assessed for social impacts.

b. Number of suppliers identified as having significant actual and potential negative social impacts.

c. Significant actual and potential negative social impacts identified in the supply chain.

d. Percentage of suppliers identified as having significant actual and potential negative social impacts with which improvements were agreed upon as a result of assessment.

e. Percentage of suppliers identified as having significant actual and potential negative social impacts with which relationships were terminated as a result of assessment, and why.

At the time of reporting, 22 suppliers, representing about 43 % of the global procurement volume of INPACS network, have published an EcoVadis scorecard. The average score of these suppliers is 56 points (silver status).

So far we have no evidence of significant actual or potential negative social impacts. A single supplier with a noticeably poor rating is already undergoing the reassessment. It can be assumed that the shortcomings are caused by the evaluation process itself, not by business conduct.

In case of the identification of substantial sustainability risks as part of poor evaluation results, a personal on-site audit will be carried out (cf. criterion 17).

18. Corporate Citizenship

The company discloses how it contributes to corporate citizenship in the regions in which it conducts its core business activities.

INPACS strengthens family-owned and mid-sized businesses internationally by giving them access to global accounts, competitive purchase opportunities as well as best practice know-how. The central organisation in this course also supports the members when facing economic challenges, to secure their long-term continued existence. The members' employees in turn have a secure job and this sustains the stability of the community. As families, our members feel connected to their communities, because they have been acting there for generations.

In 2019, INPACS' head office has decided against the concept of financial CO2-compensation and against the usage of the claim "climate neutral company". The support of the social compensation projects of the organisation Climate without Borders (Klima ohne Grenzen)  has in this course stopped. Instead, independently of our absolute emissions, we switched to the support of a non-governmental organisation, which is dedicated to international reforestation. By this, we are not only increasing our positive impact on the climate by planting trees, but creating the transparency needed for improving the performance of our climate management.

Furthermore, the heart of the newly adopted group-wide sustainability strategy is the cooperative connection of all stakeholders and creation of transparency on all levels along global wholesale value chains. By educating our customers about the sustainability of their procurement behaviour, by demanding product alternatives with a more ecological product life cycle from our suppliers and by consequently fostering the competition among market players, we achieve a positive effect on the sustainable transformation process of the economy and thus of the society.

Also our engagement within the UN Global Compact expresses our active role within the society in terms of dialogue and cooperation with public and private stakeholders for sustainable value creation.
 

Key Performance Indicators to criteria 18

Key Performance Indicator GRI SRS-201-1: Direct economic value generated and distributed
The reporting organization shall report the following information:

a. Direct economic value generated and distributed (EVG&D) on an accruals basis, including the basic components for the organization’s global operations as listed below. If data are presented on a cash basis, report the justification for this decision in addition to reporting the following basic components:
i. Direct economic value generated: revenues;
ii. Economic value distributed: operating costs, employee wages and benefits, payments to providers of capital, payments to government by country, and community investments;
iii. Economic value retained: ‘direct economic value generated’ less ‘economic value distributed’.

b. Where significant, report EVG&D separately at country, regional, or market levels, and the criteria used for defining significance.

INPACS GmbH undertakes its best efforts to maximise its members' benefits. Therefore, we share all generated benefits (direct and indirect) with our members. 
Renouncement of further reporting due to confidentiality.

19. Political Influence

All significant input relating to legislative procedures, all entries in lobby lists, all significant payments of membership fees, all contributions to governments as well as all donations to political parties and politicians should be disclosed by country in a differentiated way.

In principle, all German and European ongoing legislative processes in the fields of anti-trust, competition, trademark, environmental and employment law are relevant to INPACS. In 2019, this mainly included the following legislative amendments: 
At the time of reporting, all technical requirements and process changes were implemented and communicated ensuring compliance with the law.

INPACS records no entry in any lobby list, and is not paying contributions or donations at all to political parties or politicians since foundation of INPACS in 2004. This corresponds to the INPACS Code of Ethics

To effectively pursue its strategic goals, INPACS is involved in the following organisations:
  • Membership and active participation by INPACS senior advisor in the committee of ISSA (International Sanitary Supply Association) including annual fees of 410€.
  • International Participant of the UN Global Compact, the world's largest initiative for sustainable corporate governance. INPACS nationally participates in the selection of the steering committee
  • and thus has an indirect political influence. INPACS supports the UN Global Compact with $ 1.250 annually.
In this course, the group-wide sustainability strategy is calling to build up partnerships that Anticipate respectively Contribute to Regulation and Standards.

Key Performance Indicators to criteria 19

Key Performance Indicator GRI SRS-415-1: Political contributions
The reporting organization shall report the following information:

a. Total monetary value of financial and in-kind political contributions made directly and indirectly by the organization by country and recipient/beneficiary.

b. If applicable, how the monetary value of in-kind contributions was estimated.

0,00 € political contributions since foundation of INPACS in 2004.

20. Conduct that Complies with the Law and Policy

The company discloses which measures, standards, systems and processes are in place to prevent unlawful conduct and, in particular, corruption, how they are verified, which results have been achieved to date and where it sees there to be risks. The company depicts how corruption and other contraventions in the company are prevented and exposed and what sanctions are imposed.

In 2019, the INPACS head office has joined the UN Global Compact and thereby officially committed to making the Ten Principles publicly part of its business operations – this includes that INPACS works against corruption in all its forms, including extortion and bribery.

As the formal basis for this commitment, the INPACS Code of Ethics since many years constitutes a guideline regarding compliance with applicable law and, in particular, regarding prevention from corruption and bribery. In addition, a Guideline accepting and providing of grants has been formulated for INPACS employees. Anyway, management executives bear a special responsibility for their staff. 

In order to ensure compliant employee conduct, a systematic training system has been installed including, amongst other topics, corruption and bribery, health and safety and data protection.

We ensure compliance with legal requirements through our sophisticated quality and environmental management system, which is certified according to the standards ISO 9001 and ISO 14001. The relevant monitoring is carried out at least annually as part of on-site audits and reviews by internal officer functions, external consultants and auditors as well as official bodies. Thereby, the risk of non-compliance can be significantly minimized. The legal department, those responsible for quality and environmental management, the security officer, data protection officer, tax consultants, the pension insurance and much more are involved in the monitoring, and usually report directly to the management.

Legislative amendments, of which we have no knowledge, are considered to be a significant risk of legal violations. Therefore, external information services that announce changes in the relevant areas are used and monitored. The above-mentioned internal officers evaluate the changes and, if necessary, formulate the necessary measures as a requirement for the respective processes.

Overall, based on the internal and external reviews and as there have been no incidents nor significant fines or non-monetary sanctions, it can be assumed that the organisation operates legally compliant in the period under review and since foundation.

Also, EcoVadis attested INPACS again an advanced performance with respect to fair business practices, performing an improvement by 10 points compared to 2017.

Key Performance Indicators to criteria 20

Key Performance Indicator GRI SRS-205-1: Operations assesed for risks related to corruption
The reporting organization shall report the following information:

a. Total number and percentage of operations assessed for risks related to corruption.

b. Significant risks related to corruption identified through the risk assessment.

At the time of reporting, 25 INPACS members have published an EcoVadis scorecard, representing 68% of the network and scoring a total average of 52 points since 2017 (bronze). Ethical practices, especially with regard to the prevention of corruption and anti-competitive practices, are part of the sustainability evaluation by EcoVadis.

Key Performance Indicator GRI SRS-205-3: Incidents of corruption
Die berichtende Organisation muss über folgende Informationen berichten:

a. Total number and nature of confirmed incidents of corruption.

b. Total number of confirmed incidents in which employees were dismissed or disciplined for corruption.

c. Total number of confirmed incidents when contracts with business partners were terminated or not renewed due to violations related to corruption.

d. Public legal cases regarding corruption brought against the organization or its employees during the reporting period and the outcomes of such cases.

No incidents at INPACS head office since foundation of INPACS in 2004.

Key Performance Indicator GRI SRS-419-1: Non-compliance with laws and regulations
The reporting organization shall report the following information:

a. Significant fines and non-monetary sanctions for non-compliance with laws and/or regulations in the social and economic area in terms of:
i. total monetary value of significant fines;
ii. total number of non-monetary sanctions;
iii. cases brought through dispute resolution mechanisms.

b. If the organization has not identified any non-compliance with laws and/or regulations, a brief statement of this fact is sufficient.

c. The context against which significant fines and non-monetary sanctions were incurred.

There have not been any significant fines or non-monetary sanctions since foundation of INPACS in 2004.