Responsible sourcing for a stronger value chain
A sustainable supply chain starts with shared responsibility. CAREL works with suppliers to extend ESG commitments beyond its own operations, promoting common standards of conduct, ESG assessment, due diligence and responsible sourcing processes that help identify, prevent and reduce social, environmental and ethical risks.
To strengthen transparency across its global supplier ecosystem, we map sustainability risks through EcoVadis IQPlus and continue to improve responsible sourcing for conflict minerals. These actions support human rights, environmental responsibility and continuity of supply, connecting ESG governance with everyday procurement decisions.
Regional supplier networks for a more resilient supply chain
CAREL strengthens the resilience of its supply chain by building regional supplier networks wherever possible. Each production plant prioritises suppliers with regional production or logistics sites, helping ensure continuity of supply while reducing the environmental impact linked to transport.
This approach reflects the Group’s global industrial footprint and the complexity of the HVAC/R market. A strong and reliable supplier ecosystem helps protect operational continuity and turn purchasing decisions into concrete support for CAREL’s ESG commitments.
A Code of Conduct for sustainable procurement
Our Supplier Code of Conduct sets the shared principles that guide responsible business relationships with CAREL suppliers and with third parties working on their behalf. Since 2022, acceptance of the Code has progressively become mandatory and today it applies to all Group plants for components, products and services.
The Code helps build a supply chain based on integrity, respect and environmental responsibility. It covers legal compliance and anti-corruption, human rights and working conditions, and environmental protection. It asks suppliers to avoid conflicts of interest, protect confidentiality, reject child labour and forced labour, respect health and safety rules, and manage their environmental impacts responsibly.
Responsible minerals and stronger supply chain control
Conflict minerals due diligence is how we manage sourcing risks linked to 3TG minerals, applying a structured annual process to components that may contain tin, tantalum, tungsten and gold, which may originate from conflict-affected or high-risk areas.
We map relevant product categories and suppliers, then require suppliers to complete the Conflict Minerals Reporting Template (CMRT).
Since 2020, CAREL Group has been a member of the Responsible Minerals Initiative (RMI) and also voluntarily follows the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas.
Mapping supplier risks for stronger ESG action
Supply chain due diligence helps CAREL work more closely with suppliers to identify, prevent, reduce and address social and environmental risks.
Through EcoVadis IQPlus, the supplier ESG risk mapping process highlights where deeper analysis, engagement or follow-up actions may be needed across environment, labour and human rights, ethics and sustainable procurement. This structured approach supports supplier relationship management, conflict minerals due diligence, ethics, integrity and safety, helping the Group move from general requirements to evidence-based risk mapping and more targeted corrective action.
Its key steps are mapped below:
Sustainability risk mapping
Identify suppliers with potential ESG exposure through tools such as EcoVadis IQPlus.
Light ESG assessment
Collect initial supplier information on environmental, social, ethical and procurement practices.
Deep ESG assessment
Analyse critical suppliers in greater detail according to risk level and business relevance.
On-site ESG audits
Verify selected supplier practices and define improvement actions where needed.