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Responsible sourcing

More efficient sourcing is an integral part of the new performance improvement program that we launched in April. The program aims to accumulate EUR 100 million in cost savings.

During 2013, we adopted a new, Group-wide operating model for sourcing in order to ensure consistent operating methods and more efficient solutions based on business needs. We have centralized all orders in our selected sourcing channels and to preselected suppliers. More efficient operations have enabled us to reduce the number of active suppliers from 17,000 to less than 10,000.

Purchases are classified into six main categories which all take corporate responsibility into account. As part of the new operating model, we also implemented SupplyCenter, a new sourcing channel.

During the year, we actively communicated changes in the operating model through various internal channels and organized training events and online training for personnel.

We have defined a Supplier Code of Conduct that applies to all of our service providers and suppliers. In addition to legality, the Supplier Code of Conduct includes principles related to corruption, human rights, child labor, discrimination, working conditions and environmental concerns.

During the year, we monitored how well our suppliers know the guidelines and comply with them. We submitted a self-assessment form to nearly 600 key suppliers. Almost 400 of them completed the assessment. The focus was on the suppliers’ level of familiarity with the general guidelines. Most of the respondents were Finnish suppliers, and the response rate was highest in the transport industry. Russia has not yet been included in the audit. We did not conduct separate human rights audits during the year.

We had not performed a similar supplier audit previously. Part of the suppliers, who completed the assessment, will be audited on a more accurate level during the year 2014. With this we want to make sure that the answers given in the self-assessment are correct. The percentage of self-assessments has also been a sourcing performance indicator since the beginning of 2014.

In 2013, we joined the Supplier Ethical Data Exchange (Sedex) network as a service provider. We hold B membership of the network. Up until now, we have provided three of our customer companies with ethical data through Sedex. With more than 30,000 members, Sedex is the largest collaborative platform for managing and sharing ethical supply chain data. It shares information in four key areas: health and safety, labor standards, business ethics and the environment.

 

 

 

The Supplier Code of Conduct