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.
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
We rely on a global supply chain to deliver products and services to our customers. In our sourcing processes we consider various aspects, such as price, quality, the supplier’s sustainability standards and ability to innovate, to assess the full value of their deliveries before we decide which supplier to select. A dedicated due diligence process is in place to evaluate suppliers’ sustainability performance. The responsible sourcing function is responsible for the supplier sustainability risk assessment, including due diligence and audits. Local or group level subject matter experts also lend support in auditing and dialogue meetings.
Our suppliers shall align and comply with the requirements stated in our Supplier Code of Conduct. In addition, suppliers handling personal or sensitive data must comply with the security and privacy requirements stated in Telia's Supplier Security Directive. Suppliers are expected to apply these requirements throughout their own supply chains.
Supplier Code of Conduct and Supplier Security Directive.
Due diligence
The objective of the due diligence process is to ensure that Telia only engages with suppliers who meet our standards and require the same from their own suppliers. The process has a risk-based approach that allows us to focus on those suppliers that could potentially expose individuals, the environment, and Telia to elevated risks. The due diligence process consists of the following steps:
1. An up-front risk assessment is carried out to identify high-risk triggers such as high-risk countries from an anti-bribery and corruption perspective, and access to Telia’s network or privacy data.
2. If risks are deemed high in the up-front risk assessment, 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 screening covering, for example, ultimate beneficial ownership (UBO) and sanctions. The in-depth due diligence assessment results in risks being graded as high, medium or low. Potential high risks and serious violations identified in the in-depth due diligence assessment could lead to disqualification of the supplier or trigger a supplier audit.
3. High-risk suppliers identified during the in-depth due diligence assessment and suppliers with critical non-conformities identified through audits are reported to the Group sourcing management team for decision-making regarding.
Due diligence coverage
• Anti-bribery and corruption
• Conflict minerals
• Environment
• Human rights
• Labor rights
• Management and ownership structure
• Occupational health and safety
• Privacy
• Security
• Trade sanctions
More information can be found on pages 103-104 in the 2022 Annual and Sustainability Report