Sustainable supplier management is a prioritized area at Sandvik. With a supply base stretching out from small local manufacturing units to multinational raw material and components suppliers and from labor-intensive to high-tech operations, it is essential to partner with suppliers who embrace the same sustainability values that we uphold.
We have a global team of sustainability experts responsible for developing Sandvik’s sustainable supplier management concept and ensuring that it is integrated into the daily purchasing procedures and performance management across the organization. The team assists both the local purchasing organization and suppliers.
Global Procurement Policy
We have adopted a Group-wide Procurement Policy that includes our previous sustainability commitments towards sustainable procurement processes, to prevent bribery and corruption, ensure compliance with the Supplier Code of Conduct, reduce the environmental footprint and negative social impact of our supply base and ultimately protect and create business value for Sandvik and our business partners.
A number of processes support the implementation of the newly adopted policy, such as supplier sustainability risk assessment and approval process. This revised process, an integrated part of our purchasing model, is in a pilot phase with the intention to cover all new suppliers once fully implemented.
We annually carry out a Reasonable Country of Origin Enquiry based on the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas in order to identify melters/refiners associated with our supply chain.
Supplier sustainability program
Sandvik’s Supplier Sustainability Program focuses on three areas:
- Creating supplier commitment
- Building capacity both externally and internally
- Monitoring of identified high-risk suppliers through audits. All audits are carried out in accordance with common procedures and guidelines and the corrective action plans are followed through until implementation.