Industry Precision measurement technology
Core business areas Sensors, measurement systems, calibration solutions, modeling software
Annual revenue €596 million (2024)
Employees Over 3,500 (2024)
Headquarters Darmstadt, Germany
Supplier network Approx. 5,000 tier 1 suppliers
>3,200
suppliers assessed and continuously monitored for sustainability risks
87%
of procurement spend covered by sustainability assessments
With IntegrityNext, we’ve automated our due diligence processes and transformed ESG risk management across our supply chain into a strategic decision-making tool.
Tobias Kirchner
Global Supply Chain Sustainability & Compliance Manager, Hottinger Brüel & Kjær GmbH
How HBK Uses Our Platform
- Main applications
- Supply chain due diligence
- Supply Chain Visibility Solution to enhance tier-n transparency
- Distribution of the supplier code of conduct
- Suppliers screened Over 3,200 tier 1 suppliers
- Suppliers subject to self-assessments Over 3,200 tier 1 suppliers
HBK Goals We Support
Supply Chain Transparency
Gain detailed insights into the sustainability practices of direct suppliers and identify material and product risks across upstream tiers. These insights form the foundation for proactive risk management and regulatory compliance.
Systematic Risk Management
Conduct ESG assessments for suppliers representing at least 80% of annual procurement spend to ensure consistent, risk-based oversight.
Supplier Onboarding
Fully integrate automated analysis of supplier sustainability performance into standard procurement workflows.
Decarbonization of the Value Chain
Achieve net zero by 2040, with a 42% reduction in Scope 3 emissions by 2030. Purchased goods and services (Scope 3.1) account for the largest share of HBK’s total carbon footprint – making supplier engagement critical.
Supplier ESG Skills
Strengthen supplier sustainability knowledge and establish consistent environmental, social, and governance standards across the supply chain.
Corporate Context
Hottinger Brüel & Kjær GmbH (HBK) develops sensors, data systems, and software for the precise measurement and analysis of physical properties. Its solutions are used primarily in the automotive, aerospace, and energy industries.
The company’s complex supplier network includes around 5,000 tier-1 partners worldwide, with key hubs in Europe, Asia, and North America. Given this broad and diversified supplier base, improving supply chain transparency became a strategic priority. HBK sought to gain a comprehensive understanding of suppliers’ business practices, identify critical risks, and embed sustainability more deeply into its procurement processes.
In the past, supplier risk evaluations were mainly manual and Excel-based. But this approach quickly reached its limits as complexity increased. At the same time, customer expectations began to shift, particularly regarding compliance with due diligence requirements. While HBK does not fall directly under the German Supply Chain Act (LkSG), many customers expect the company to adhere to its standards.
To address these challenges, HBK needed a powerful and scalable software solution that could:
- Enable largely automated, digital processes for more efficient resource use
- Continuously and systematically capture sustainability and risk data across the supply chain
- Provide intuitive, user-friendly assessments, especially for small and medium-sized suppliers
- Scale across diverse sustainability topics, supplier volumes, and internal data users
- Integrate easily with SAP for optimal data access and use
- Deliver comprehensive risk insights beyond tier 1
By partnering with IntegrityNext, HBK ensures all these requirements are met, while laying the foundation for proactive, data-driven risk management.
Our supplier evaluations used to require extensive internal coordination and numerous manual steps. Today, everything runs seamlessly on the IntegrityNext platform – saving resources, reducing errors, and freeing up time for strategic tasks like supplier development.
Project Description
Roll-Out
Supplier Onboarding and Assessment
To ensure supplier compliance and mitigate regulatory risks, HBK uses the IntegrityNext Supply Chain Due Diligence solution as part of its onboarding process. It begins with an automated analysis of country- and industry-specific risks. All suppliers must sign HBK’s Supplier Code of Conduct via the IntegrityNext platform and complete self-assessment questionnaires aligned with the requirements of the German Supply Chain Due Diligence Act (LkSG). Depending on the product category, additional topics – such as conflict minerals – are included. Larger suppliers are also required to submit detailed carbon footprint data.
Drawing on these insights, HBK mapped its procurement spend relative to supplier revenues. This analysis helped prioritize critical partners and topics, enabling the development of targeted risk mitigation measures.
The IntegrityNext platform replaces the previous Excel-based assessments, which tied up resources across multiple departments. It now provides centralized, automated, and continuous monitoring of supplier performance – supporting more efficient and strategic supplier management.
Supply Chain Visibility and Risk Analysis
In today’s complex regulatory and sourcing environment, HBK prioritizes proactive supply chain risk management. To support this, the company uses IntegrityNext’s Supply Chain Visibility solution for two primary reasons:
- To gain deeper insights into upstream suppliers beyond tier 1
- To identify critical products and materials at lower supply chain tiers
This approach helps expose hidden risks – such as the presence of conflict minerals or components subject to regulations like the EUDR and CBAM. It also enables more precise risk oversight and fosters strategic dialogue with direct suppliers regarding upstream risks.
HBK has mapped the supply chains of several key product groups, gaining a more detailed understanding of upstream tiers. These insights have allowed the company to:
- Set clearer requirements for direct suppliers concerning the sourcing of upstream components
- Pinpoint high-risk products for further auditing of supplier practices at lower tiers
- Validate known upstream suppliers and map the supply chain more accurately
- Identify alternative suppliers to mitigate bottlenecks or secure hard-to-source components
As a result, HBK can now detect potential risks earlier, collaborate more effectively with suppliers to address them, and take proactive action that strengthens supply chain resilience.
Key Stakeholders
Sustainability and compliance topics across all HBK subsidiaries are coordinated from the company’s headquarters in Darmstadt. Global Procurement holds primary responsibility for supply chain sustainability, working in close partnership with Quality Management, Legal, IT, and Cyber Security.
Within the Procurement team, the Global Supply Chain Sustainability & Compliance Manager ensures cross-functional coordination and implementation of sustainability requirements in collaboration with these departments.
Currently, 16 employees use the IntegrityNext platform – mainly in Procurement, with additional users in Sustainability & Compliance and IT. To support broader integration, HBK plans to link its ERP system to IntegrityNext via an Extended API. This connection is expected to significantly expand internal access to IntegrityNext data and strengthen cross-departmental alignment.
Key Outcomes
Insights into the Tier-1 Supplier Base
HBK not only achieved its goal of covering 80% of procurement spend with IntegrityNext ESG assessments ahead of schedule, but even exceeded it by reaching 87%. This milestone provides comprehensive visibility into tier-1 supplier performance and supports strategic procurement decisions.
Transparency Across the Tier-N Supply Chain
Using the IntegrityNext Supply Chain Visibility solution, HBK has firmly embedded upstream data insights into its due diligence process. Critical material and product risks – such as conflict minerals or exposure to regulations like the EUDR and CBAM – are now identified early and addressed in collaboration with tier-1 suppliers.
Automated Supplier Onboarding
HBK has transformed its supplier assessments from manual, decentralized Excel-based processes into a fully digital, consolidated, and automated workflow using IntegrityNext. All data is now centrally accessible, significantly reducing administrative effort and freeing up resources.
Stronger Internal Collaboration
Departments such as IT Security, Product Compliance, Sustainability, and Procurement now work more closely together through shared access to centralized supplier assessments. This integrated approach supports internal standards and helps HBK meet increasing customer expectations around supply chain transparency and sustainability.
With the IntegrityNext Supply Chain Visibility solution, we are gaining systematic insights into critical risks beyond our tier-1 suppliers for the first time. This new level of transparency strengthens our ability to manage risks proactively and build long-term supply chain resilience.
Future Outlook
HBK has set clear priorities to further advance sustainable supply chain management:
IT Integration
Migration to SAP S/4HANA and connection to IntegrityNext via Extended API to feed sustainability data and analyses directly into the ERP system for broader use across the company.
Enhanced Supplier Pre-Qualification
Following integration, IntegrityNext will serve as an automated pre-qualification tool for all upstream suppliers, fully embedded in onboarding workflows.
Sustainability Focus Areas
Key priorities for the coming years include implementing EUDR and CSRD requirements and achieving full decarbonization by 2040. HBK also plans to increasingly collect product-level emissions data (PCF).
Extended Tier-N Transparency
Supply chain analysis data will be integrated into procurement systems to enable more targeted and efficient risk management.
Feeling Inspired by HBK's Success Story?
Talk to our team and see how IntegrityNext supports smarter, more sustainable supply chain management.
✔ Automate and optimize supplier ESG risk assessments
✔ Gain transparency beyond tier-1 suppliers
✔ Streamline risk management across the entire upstream supply chain