IU Group and supplier sustainability: monitoring ESG risks

In today's interconnected global economy, the sustainability of any organisation is closely tied to the strength and integrity of its supply chain. This is especially true for the education sector, where maintaining a sustainable supply base is essential for smooth operations and aligning with broader societal goals of environmental stewardship and social responsibility. Regulations such as the German Supply Chain Due Diligence Act (LkSG) and similar mandates underscore the importance of sustainable supply chains.

Organisations today must act as agents of sustainable development, promoting sustainability across their entire value chain, including suppliers and customers. This is what we at IU Group strive to do.

Our commitment to sustainability is reflected in our regular monitoring of environmental, social, and governance (ESG) risks with our suppliers. We focus on the geographical and profile structure of our supplier base, as well as their adherence to high standards of human rights and environmental sustainability.

IU Group supplier structure

Most of our suppliers come from jurisdictions with a relatively well-developed regulatory framework and widespread sustainable business practices. Our latest analysis revealed that the majority of IU Group’s suppliers are based in Germany, with significant portions also in the United States, Ireland, and other OECD countries. A significant portion of our expenditure goes towards marketing services, reflecting our focus on effectively communicating and promoting our educational offerings. Investments in technology, retail, and human resources management support our infrastructure and administrative needs.

We are committed to working with suppliers who uphold the highest standards of human rights and environmental sustainability. Our analysis showed that 42% of IU Group's spend is with suppliers publicly committed to human rights, minimising environmental footprints, preventing forced and child labour, and maintaining high standards of occupational health and safety. The percentage of suppliers committed to at least minimising their environmental footprint is 47%. We will work on increasing these percentages.

Resources for our suppliers

Our suppliers are expected to comply with IU Group’s Supplier Code of Conduct, which sets forth our rigorous standards for ethical business practices, human rights, and environmental sustainability. This Code prohibits child labour, forced labour, and slavery, and mandates safe and healthy working conditions. It upholds the freedom of association and the right to collective bargaining, protects against discrimination, and ensures fair remuneration. Additionally, it prohibits unlawful eviction and land seizure, regulates the use of security forces, and includes stringent guidelines for environmental performance, such as monitoring and minimising environmental footprints and complying with environmental regulations. Governance standards within the Code cover product responsibility, fair competition, anti-corruption measures, data protection, and sanctions compliance.

The Supplier Code of Conduct of IU Group can be found here.

IU Group has a feedback system in place for addressing concerns about sustainability in our supply chain. It allows stakeholders to report issues confidentially and ensures that all complaints are reviewed and resolved responsibly.

You can get in touch with us through the contact form here.

Moving forward, we plan to ensure a higher percentage of suppliers officially commit to high ESG standards and conduct a deeper analysis of suppliers from riskier jurisdictions and industries. By continually assessing our supply chain and maintaining a dialogue with our suppliers, we aim to contribute positively to the global community and inspire others in the education sector to do the same.

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