Responsible sourcing

Telia Company's annual purchasing volume is over SEK 60 billion, with purchases from about 38,000 suppliers and countless sub-suppliers from all parts of the world. Choosing suppliers with good sustainability practices is a way for us to positively influence our supply chain.

Strategic objective 2018 goals
  • All suppliers and sub-suppliers comply with our sustainability requirements.

  • All suppliers have signed our supplier code of conduct.

  • 75 percent of assessed suppliers compliant with supplier code of conduct.

  • 25 percent reduction of supplier base (baseline 2015).

The challenge

We expect our suppliers, sub-suppliers and distributors to implement sustainable business practices and to be transparent about their challenges. We face major challenges in our supplier management as a result of the vast number of suppliers we rely on and the fact that in some markets, the general level of compliance with our supplier requirements is significantly lower than what we require. Ensuring solid supplier sustainability management will take several years and despite our efforts, the risk remains that suppliers and sub-suppliers will not comply with Telia Company's sustainability, security and quality requirements.

Our approach

The work is governed by the Group Supplier Code of Conduct, Security Directives, Substance Avoid "Grey List" and Prohibited Substance "Black List". Telia Company's General Terms and Conditions, if not agreed in separate contract, apply to all purchase orders.

In the supplier evaluation process we use a risk identification tool to determine high risk suppliers and ask potential suppliers to complete a due diligence questionnaire. For suppliers identified as high risk suppliers (e.g. suppliers and sub-contractors in construction, field maintenance, repair and network rollout services) we seek to identify politically exposed persons, fraudulent persons and companies, ultimate beneficial owners and also to check compliance with the Supplier Code of Conduct.

At the start of large procurement projects or procurement projects involving high risk suppliers, suppliers are required to complete a self-assessment which scores the supplier’s sustainability performance. The self-assessment covers a broad range of topics such as environmental management, labor practices, human rights compliance and anti-corruption programs.

Telia Company's supply chain due care process

Responsible procurement

More information, including 2016 outcome on the goals and audit findings, can be found in our Annual and Sustainability Report.

Audits

Supplier audits are an improvement opportunity for both Telia Company and the supplier. 

Site visits are part of Telia Company's sourcing process:

  • To clarify and bring more knowledge on the of Telia Company’s standpoint and expectations on sustainability, security and quality

  • To increase compliance of Telia Company’s requirements by ensuring suppliers’ understanding of these

  • To address non-conformities of specific breaches to the requirements which require the supplier to take corrective action

  • To strengthen the relationship between Telia Company and suppliers

Joint Audit Cooperation

The audits are carried out regularly in the whole supply chain, and are performed by Telia Company’s auditors or by a third party. 

There are five categories of audits: security, quality, Supplier Code of Conduct, site visits (review on specific topics) focused on Telia Company’s business and Joint Audit Cooperation (JAC).

Audits are performed according to:

Recognized standards:

  • Quality Management System; ISO 9001

  • Environment Management System; ISO 14001

  • Occupational Health and Safety System; OHSAS 18001

  • Social Accountability International; SA8000

International regulations:

  • UN Universal Declaration of Human Rights

  • International Labor Organization Conventions

  • UN Convention against Corruption

  • Rio Declaration on Environment and Development

Telia Company requirements:

  • Telia Company Group Supplier Code of Conduct

  • Security Directives

  • Substance Avoid Grey List and Prohibited Substance Black List

For more information, contactsuppliers-audit (at) teliacompany.com . If you have reason to believe that a supplier is violating Telia Company’s guiding documents, please contact the Speak-Up Line.

Joint Audit Cooperation

As a member of Joint Audit Cooperation (JAC) we share resources and best practices to develop a sustainable ICT supply chain.

Telia Company is part of the Joint Audit Cooperation (JAC), an association of telecom operators aiming to verify, assess and develop the Corporate Social Responsibility (CSR) implementation across the manufacturing centres of important multinational suppliers of the Information Communication Technology (ICT) industry. JAC members share resources and best practices to develop long term Corporate Social Responsibility implementation in the different layers or tiers of the ICT Supply Chain globally. 

The JAC process is simply a coordinated on-site audit and development program in the area of Corporate Social Responsibility (CSR) based on a common verification, assessment and development methodology, including the follow up of corrective action plans. Each member company has the responsibility, acting on behalf of the others, to lead a complete audit process to a number of suppliers. The list suppliers to be audited is pre-identified each year then divided in equal parts among the JAC members.

The first JAC audit campaign was carried out in July 2010. Until 2015, more than 200 audits have been carried out on ICT suppliers in China, Taiwan, India, Japan, South Korea, Eastern Europe, Europe, South America and North Africa covering more than 600.000 workers in total.

Various types of non-compliances have been raised. The most common ones relate to working hours, health and safety, and wages. A few cases of discrimination and juvenile work have been discovered.