There is first an one -on-one conversation with a supplier to encourage improvement, and if there is no improvement with a serious violations there can be exclusion from the supply chain.
Supplier's S-Rating is direct related to contract awards. So, if a supplier does not meet VW's requirements for compliance with sustainability standards, "they generally will not be awarded contracts" (Page 10).
Similarly to corrective action plans, VW conducts a "mandatory plan of measures with the supplier to eliminate the deficits", if an onsite visit indicates a breach of human rights (Page 11).