The Emmi Group takes its responsibility towards society and the environment seriously. This applies in particular to the procurement of goods and services. In its supply chain, the Emmi Group works with business partners who are committed to upholding human rights, in particular avoiding child labour, respecting animal welfare and protecting natural ecosystems. To this end, it has defined binding minimum social and environmental requirements for its suppliers.
The Emmi Group procures goods and services worth CHF 3 billion every year. In addition to milk and dairy products (around 50% of total expenditure), this includes other agricultural raw materials (5% of total expenditure), such as sugar, cereals, nuts, fruit, cocoa and coffee. It also procures semi-finished products, packaging materials, logistics services and energy from external partners. Through its procurement policy, the Emmi Group influences the social and environmental conditions under which the required raw materials, goods and services are manufactured and transported.
In addition to respect for human rights, such as preventing child and forced labour, one key way to making a strong social impact is to ensure fair working conditions. This includes paying a living wage to personnel working in raw material production. The internal risk analysis, based on the Children’s Rights & Business Atlas, shows that the Emmi Group’s agricultural value chain – for example, for cocoa, certain fruits and coffee – can potentially be exposed to an increased risk of child and forced labour depending on its origin and method of production.
The production of agricultural raw materials procured by the Emmi Group (particularly soya, cocoa, coffee, palm oil and plant fibres for packaging) has a significant impact on the environment, biodiversity and climate.
The Emmi Group is aware that legal infringements, human rights violations or environmental pollution in the upstream or downstream supply chain may have legal, reputational or economic consequences for the Emmi Group. Such events can also weaken consumer confidence. Environmental damage and climate change can also lead to crop failures, while changes in legislation within and outside the countries of destination can cause procurement difficulties (e.g. supply bottlenecks, longer procurement times or price increases).
The Emmi Group relies on clear guidelines, the establishment of sustainability standards and proven, long-standing relationships with its suppliers.
The Group-wide internal sustainable procurement guideline from 2020 specifically describes the standards and procedures for strategic procurement at the Emmi Group. This includes the procurement of milk, non-dairy raw materials, packaging materials, energy, logistics services and capital goods (equipment). The policy defines principles in the following five areas:
Require attention: risk topics (such as child labour, forced labour or greenhouse gas emissions), risk countries and risk materials. The guideline also sets out the procedures and responsibilities for implementing the Supplier Code of Conduct (see section 1.4 Corporate culture and business ethics). It also sets out requirements regarding the annual audit in connection with the due diligence obligations arising from the Swiss Ordinance on Due Diligence and Transparency Obligations regarding Minerals and Metals from Conflict-Affected Areas and Child Labour (DDTrO).
Since 2022, new suppliers that are actively managed by strategic procurement must explicitly accept and comply with the Emmi Code of Conduct. All suppliers with which the Emmi Group had a regular business relationship prior to 2022 must also accept the Code of Conduct by 2026. In justified individual cases, formal acceptance may be waived, provided that equivalent standards are demonstrably met and documented. The committee of experts decides on such exceptions. To this end, each Group company prioritises its suppliers and sets itself a specific annual target. Securing the support of existing suppliers is all the more important because the Emmi Group relies on long-term and stable supplier relationships. The Emmi Group can procure important raw materials, such as milk, primarily from local sources due to their shelf life and existing trade restrictions. It therefore relies on long-term relationships here, too.
Progress is measured every year, with the proportion of actively managed suppliers that have accepted the Code of Conduct being set in relation to all actively managed suppliers.
Some newly acquired companies still have their own codes of conduct for their suppliers. This is currently the case with the Mademoiselle Desserts Group (FR), Hochstrasser (CH) and Verde Campo (BR). In the course of their integration into the Group, these companies will adopt the Emmi Group’s Code of Conduct. The timing for this is determined by division management.
There is currently no regular, systematic review of compliance with the Code of Conduct. If there are grounds for suspicion, a survey will be conducted and the supplier reviewed depending on the situation. If a supplier rejects the provisions of the Code of Conduct in full or in part, the internal committee of experts will decide on the next steps. The same applies if a breach of the Code of Conduct is identified. The primary objective of any further measures is to improve the situation at the supplier and continue to develop it, thereby reducing the risk for the Emmi Group. For this purpose, specific objectives are agreed in combination with regular supplier audits. In the event of persistent difficulties or a lack of willingness to cooperate on the part of the supplier, the business relationship may be terminated.
In accordance with the requirements of the Science Based Targets initiative (SBTi), the Emmi Group committed at the end of 2025 to procure the raw materials coffee, cocoa, palm oil, soya for animal feed, cardboard and corrugated cardboard only from supply chains that have been deforestation-free since 31 December 2020. The publication of the No-Deforestation Commitment also defined the framework for the implementation of this commitment. It also describes how to proceed in the case of non-compliance. According to the SBTi Forest, Land and Agriculture (FLAG) guideline, food production generally involves an increased risk of processing raw materials that originate from cultivation areas that have been extracted through deforestation. Those materials that are particularly affected include soya for animal feed, coffee, cocoa, palm oil and plant fibres used in the production of packaging materials (cardboard and corrugated board). To reduce the risk of sourcing such raw materials from areas that underwent deforestation after 2020, the Emmi Group procures raw materials with a quality label where possible. The most important labels are: Rainforest Alliance (RFA), Forest Stewardship Council (FSC) or Roundtable for Sustainable Palm Oil (RSPO). If raw materials or other materials with corresponding certifications are either not available or available in insufficient quantities, the Emmi Group complies with the standards of the Association of Food Industries (AFi) and sets out the requirements contractually. In addition, it requires the supplier to provide qualified evidence on a case-by-case basis (e.g. ESG report, results of audits and process documentation).
To implement the DDTrO, the Emmi Group annually reviews all suppliers that have invoiced an Emmi Group company at least once a year within the past two years. If the review reveals that the Emmi Group sources parts of its raw materials and semi-finished products from countries that, according to the UNICEF Children’s Rights and Business Atlas, have an increased or high risk of child labour, in-depth research is carried out. If any suspicions are confirmed, the Emmi Group contacts the suppliers concerned directly and, if necessary, conducts an audit with a clearly defined objective for risk mitigation. Measures taken are followed by subsequent checks. The Emmi Group has defined the detailed procedure for risk assessment and research in the internal sustainable procurement guideline (see above).
The Emmi Group carries out a due diligence audit every year as stipulated in the DDTrO. Potential imports of conflict minerals and metals into Switzerland are analysed and documented using their customs tariff numbers. The results of the audit show that the Emmi Group does not import or process any corresponding minerals or metals. As a result, it is currently not subject to the due diligence and reporting obligations under the DDTrO in connection with minerals and metals.
The Emmi Group’s internal guidelines for sustainable procurement refer to the general whistleblower hotline, which can be used to confidentially report information on actual or suspected breaches in connection with the supply chain – such as against legal requirements, internal guidelines, ethical standards or human rights and environmental obligations. Any reports are forwarded to the internal committee of experts in accordance with a defined process and reviewed there. The committee consists of representatives from the procurement, sustainability, quality and legal departments.
In the reporting year, the Emmi Group started developing a new strategy for sustainable procurement and defined additional measures. The aim is to replace the current, predominantly statutory approaches with a strategic approach that is more closely aligned with the overarching sustainability goals. This was prompted in part by the recalculation of the SBTi targets in the reporting year, with a focus on decarbonisation of the supply chain. The strategy is the responsibility of strategic procurement and was developed in close consultation with the sustainability department. Specific measures are currently being drafted and have not yet been formally approved.
As part of a pilot project at Emmi Switzerland AG, the internal sustainable procurement guideline was expanded to cover non-dairy raw materials and packaging during the reporting year. This includes defining sustainability risk management in procurement (dealing with risk topics, critical origin, critical materials and product groups), specifying requirements for the implementation of statutory and internal due diligence requirements, and defining options for securing and promoting sustainability in the supply chain. Whether and to what extent the extended guideline will be rolled out on a Group-wide basis will be decided as part of the Emmi Group’s regular strategy review.
The Emmi Group has prepared itself for the introduction of the European Deforestation Regulation (EUDR). The Regulation concerns cocoa, coffee, palm oil, rubber, cattle, soya and wood and products derived from them. From the date of application of the Regulation, these raw materials and products will enter the EU market or be exported from the EU only if they have not been produced on land that has been deforested after 2020 or are generally not associated with forest degradation.
The buyers (18 employees) at Emmi Schweiz AG received training on sustainability topics (e.g. labels, sustainable procurement guideline and deforestation) in the reporting year.
The Emmi Group carried out nine supplier audits in the reporting year. No relevant events, deviations or instances of non-compliance with the applicable requirements were identified for any of the suppliers audited.
Of the 1,600 suppliers that currently have a business relationship with an Emmi Group company and are managed by strategic procurement, the Code is explicitly binding for more than 1,300 suppliers (81%). Compared to the previous year, the number of suppliers that adhere to the Supplier Code of Conduct increased by 40%.
In the reporting year, four suppliers were identified as exhibiting a possible risk of child labour. However, none of the four suspected cases could be confirmed after an analysis. Accordingly, no further measures were taken.
The strategy for sustainable procurement, which was defined in the reporting year, is to be adopted and implemented in the coming year.
Taking into account the requirements of the SBTi FLAG guideline on the no-deforestation supply chain, the Emmi Group will develop a concrete roadmap in 2026 that outlines how existing gaps are to be identified and prioritised and by when they are to be closed.
In addition, an evaluation is under way to determine whether new legal requirements require changes to be made to existing internal policies and processes.