We set high standards for our suppliers
Addtech’s good reputation is one of our strongest competitive assets. Because we make great demands of integrity and ethics in our own operations, it is natural to do the same with our suppliers as well. We work closely with our suppliers, and review them regularly to ensure that the whole value chain is working to the same ethical objectives.
No incidents in connection with infringements of human rights were reported in 2016/2017 or previous years.
Addtech’s Code of Conduct for suppliers
In 2016/2017, we produced a separate Code of Conduct for Suppliers. The aim is to increase clarity as to which demands are placed on suppliers and facilitate easier monitoring by our companies. The Code of Conduct for Suppliers will be rolled out in the organisation during 2017/2018.
Addtech’s supplier chain
The major share of Addtech’s sales consists of products and solutions from global and market-leading suppliers. We have a large number of suppliers across the world and the major share of purchases come from suppliers outside the Nordics, in Europe, the USA and Asia. Of course, the fact that the largest share of production takes place outside the scope of our operations represents certain sustainability risks. Relationships with our suppliers are often longstanding and involve close collaboration on how the supplier’s products can be used in a variety of customer applications. This benefits quality, price, lead times and customer satisfaction, and at the same time gives us the opportunity for constructive dialogue on the supplier’s sustainability risks and development.
Addtech is also constantly seeking new suppliers who can complement or boost the development of our business. We maintain a continual focus on deepening our supplier relationships and ensuring that our suppliers live up to what we expect vis-à-vis their employees, society and the environment.
Supplier evaluations assure sustainability in our value chain
In most years, Addtech has conducted certain supplier evaluations in order to analyse our suppliers in terms of our Code of Conduct. The evaluation is based on both a social perspective and environmental considerations. The aim of supplier evaluations is to ensure that Addtech’s companies work with ethically responsible suppliers and that the whole of our value chain operates according to the same ethical objectives. The ambition is to work with our suppliers and to review them regularly in order to bring about positive change.
In 2016/2017, we established minimum requirements, to be fulfilled within a period of three years, for the assessment of suppliers. The targets apply to all levels, Group, business area and company. Special targets apply to new suppliers, any high-risk products and high-risk geographies. Each business area is responsible for developing detailed targets and action plans in order to achieve these three-year objectives.
During 2016/2017, the Group-wide system and process for supplier assessment underwent further development for continued roll-out during 2017/2018.
Anti-corruption
Business ethics is high on our agenda, representing an issue that is continuously addressed, for example in the Addtech Business School. Guidelines on anti-corruption are set out in the Code of Conduct and the Code of Conduct for Suppliers. We have a stated policy of zero tolerance of corruption, bribes and unfair anti-competitive practices. No cases of corruption were found to have occurred during the year.
Child labour
The UN Convention on the Rights of the Child, the ILO’s Minimum Age Convention (no. 138) concerning Minimum Age for Admission to Employment, and the ILO’s convention (no. 182) concerning the Prohibition and Immediate Action for the Elimination of the Worst Forms of Child Labour serve as guidelines for all activities conducted in our name. No incidents involving any breach of these conventions were reported during 2016/2017.
Labour law
All our companies and suppliers must, under our Code of Conduct, at least meet the minimum requirements of national legislation in the area of labour law. Guidelines regarding labour law are set out in our Code of Conduct. Addtech has a zero tolerance policy on forced labour and works actively to assure itself that no breach of regulations takes place in our operations or our value chain.