Our focus
Our mission is to do everything we can to expand human potential. We do this by creating breakthrough technological innovations, making our products more sustainable, building a creative and diverse global team thus positively impacting the world in which we live.
CAG Drives s.r.o. is a Czech Republic-based company that manufactures electrical products under the CAG brand.
Compliance with the Code manufacturing
Fair
evaluation
Environment protection
We work with suppliers who share our commitment to zero compromise for the environment and focus on reducing our collective impact on energy, emissions, waste, water and chemicals.
Implementation of industrial innovations
We work with a wide range of stakeholders to solve systemic problems and improve outcomes for workers and their communities.
Building relationships with our suppliers
We build long-term relationships with our contract suppliers because we know that trust and mutual respect support our ability to build product, accelerate innovation and better serve our customers.
More than 90% of CAG’s products are manufactured by factory groups with whom we have worked for more than 15 years.
Motivating suppliers to continuously improve sustainability performance
We support sustainability improvement through the CAG-system Code of Conduct, which assesses supplier performance in the areas of quality, delivery, cost and sustainability.
We also have tools that consider growth and potential in leadership, operations, innovation, product development and sustainability. We use this information to inform our long-term sourcing strategy and increase business with top-performing suppliers.
Supporting suppliers in meeting our standards
We help our key suppliers promote sustainability by providing resources that create greater transparency and predictability. CAG’s strong and long-standing relationships with suppliers help us create innovative products responsibly. Our approach also supports better outcomes for our suppliers and the people who work in our supply chain.
Production standards
System Code
CAG has a long-standing commitment to working with suppliers to improve production conditions and minimise negative impacts on workers and the environment.
To align the requirements for our suppliers, we have developed a comprehensive system code of practice that defines manufacturing practices to ensure that our partners‘ results keep growing in potential. Every supplier that manufactures for CAG must meet a strict set of compliance requirements. CAG’s System Code sets the minimum required standards we expect from each supplier or plant.
Approval of suppliers
All potential new suppliers are subject to a new source approval process. Suppliers must receive an overall amber rating before full production can begin audit – our minimum acceptable level.
| Insufficient | Unstable | Sufficient | Excellent |
|---|---|---|---|
| Serious deficiencies or failure to return to compliance with remediation plans. | Ongoing improvement process. The supplier is still unstable. | Basic level of compliance with the CAG System Code. Certified Supplier. | Industry Leader. Comprehensive implementation of the CAG System Code. |
Verification of compliance with the system
CAG’s Manufacturing Index, introduced in 2011, rates factories based on four equally weighted categories: sustainability (including work practices) and three traditional manufacturing metrics (cost, quality and on-time delivery). We evaluate the sustainability component through our Sustainable Manufacturing and Supply Index and aim to bring all factories to an Amber rating (our minimum standard) or higher. We are transforming manufacturing performance through our Code of Conduct. Achieving an orange rating demonstrates basic adherence to standards that respect workers‘ rights and create a safe work environment.
Manufacturer’s Compliance Program
CAG monitors compliance with the System Code through regular and unannounced audits. These are conducted by internal and external parties. The ratings resulting from the assessments form the basis of the supplier score. This encourages performers to improve and initiates sanctions for suppliers who do not meet the expectations of the minimum quality score (Orange rating). In this way, we encourage suppliers to fully comply with the CAG System Code of Conduct and Standards.
Remedy
Responsible Selling
In the event that we terminate the relationship with an existing supplier, whether due to poor performance in terms of sustainability, or for other reasons, a responsible CAG exit process is initiated. This includes an assessment of the risks to our customers.
We take this process seriously. It involves reducing production orders over a set period of time to create as little
amount of disruption to the business and the workforce. In high-risk situations, task forces are assembled consisting of many stakeholders to develop and monitor an exit plan designed to manage the risks identified with the termination.
We believe
We believe in the power of energy in transforming lives, enhancing communities, advancing human progress, and sustaining our planet.