Telia Company relies on a vast number of suppliers and sub-suppliers, many of which are located in countries or industries with challenges in upholding ethical business practices, human and labor rights, health and safety and environmental protection. Choosing suppliers with good sustainability practices is a way for us to positively influence our supply chain.
|Strategic objective||2018 goals|
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.
The work is governed by the Group Supplier Code of Conduct, Security Directives, Substances that are to be avoided - The Telia Company "Grey List" and Prohibited substances - The Telia Company "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
More information, including 2016 outcome on the goals and audit findings, can be found in our Annual and Sustainability Report.