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.

Ambition 2017 progress 2018 goals

  • All suppliers and sub-suppliers comply with our sustainability requirements

  • All suppliers have signed our Supplier Code of Conduct

  • Local due diligence and on-site audit capacity building in region Eurasia

  • Due diligence process introduced in Estonia and Lithuania

  • New due diligence manual developed and implemented
  • Revised ethical compass under implementation
  • Over 2,900 supplier sustainability due diligence carried out
  • 96 on-site audits

  • 75 percent of assessed suppliers compliant with Supplier Code of Conduct

  • 25 percent reduction of supplier base (baseline 2015)

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

Supply chain due care processMore information can be found in our Annual and Sustainability Report.

Audits

Supplier audits are an improvement opportunity for both Telia Company and the supplier. As part of the sourcing process the audits aim to:

  • Clarify and bring more knowledge on the of Telia Company’s standpoint and expectations on sustainability, security and quality
  • Improve compliance of Telia Company’s requirements by ensuring suppliers’ understanding of these
  • Address non-conformities of specific breaches to the requirements which require the supplier to take corrective action
  • 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 frameworks:

  • UN Universal Declaration of Human Rights

  • International Labor Organization Conventions

  • UN Convention against Corruption

Telia Company requirements:

  • Supplier code of conduct

  • Security directives

  • Substance Avoid Grey List and Prohibited Substance Black List

For more information, contact: suppliers-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.

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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 a member 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 a coordinated on-site audit and development program 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.

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