While a green light indicates no sustainability risks, a yellow or red light indicates a potential sustainability risk and therefore requires action. Based on the identified discrepancies a corrective action plan will be created and automatically recorded in the supplier development module. Each of the corrective actions also has a defined time frame (grace period) for implementation.
Suppliers are able to access SCM STAR and report on how implementation of the corrective actions is progressing. Once all corrective actions have been confirmed as implemented by the supplier, the mandated buyer can close the corrective action plan in the system.
Siemens Energy may also initiate an external sustainability audit on the supplier's premises to ensure proper implementation of the corrective actions through an assessment by an independent sustainability auditor. If the required corrective actions, despite assistance from Siemens Enery, are not implemented within the grace period, whether due to lack of commitment or ability, Siemens Energy will endeavor to resolve the problems in an escalation meeting together with the supplier.
If all efforts remain unsuccessful, Siemens Energy reserves the right to terminate the business relationship and phase out the supplier.