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.
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.
Responsible sourcing starts with setting the expectations for our suppliers, primarily through the Supplier Code of Conduct and Supplier Security Directive. 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.
All suppliers are subject to mandatory due diligence screening before contracting, and mandatory revised due diligence during the term of the contract. The process which covers a large number of areas is continuous, meaning that the due diligence cycle is based on the identified risks regardless of contract length.
An upfront risk assessment is carried out initially to identify high-risk triggers related to, for example, trade sanctions, bribery and corruption and privacy. If risks are deemed high, the supplier undergoes an in-depth due diligence assessment consisting of a self-assessment against the Supplier Code of Conduct and other relevant requirements as well as a database search covering, for example, ultimate beneficial ownership (UBO) and sanctions. Audits are required if certain risk criteria such as potential serious violation of human rights or labor rights are met.
Due diligence coverage
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.