Responsible sourcing
We expect our suppliers, sub-suppliers and distributors to implement sustainable business practices and to be transparent about their challenges. Choosing suppliers with good sustainability practices is a way for us to positively influence our supply chain.
| Ambitions | 2022 goals |
|
Responsible sourcing as a mindset and behavior Proactive approach to managing sourcing risks Value-adding industry and supplier collaboration |
Sourcing sustainability processes fully aligned with a sourcing supplier life cycle process Implemented processes for risk-based audit planning 75 percent of critical and major audit non-conformities followed up or closed within twelve months |
Challenges
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. Despite solid responsible sourcing practices, the risk remains that suppliers and sub-suppliers do not comply with our sustainability, security and quality requirements.
Our approach
This focus area 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.
Responsible sourcing starts with setting the expectations for our suppliers, primarily through the Supplier code. We use a risk-based process where suppliers are categorized based on, for example, the region where the company is registered, the type of product or service provided or how critical the supplier is to our operations. This categorization supports in designing appropriate risk mitigation activities such as further due diligence steps (supplier self-assessment, information research and risk analysis) before contracting, and in conducting on-site audits to evaluate whether a supplier’s sustainability performance is sufficient.
All due diligence steps are performed in our due diligence platform. Local sourcing teams are responsible for initiating the due diligence process, initiating on-site audits and following up on suppliers’ performance if needed. Exceptions to the Supplier code requirements can be approved when a supplier has demonstrated that corresponding or stricter requirements are already in place.
Responsible sourcing process
More information can be found in our Annual and Sustainability Report, pages 53-53
Click here to watch a video of our Supplier Code of Conduct. It highlights the requirements we expect our suppliers to comply with when doing business with us.
