Guidelines and governance
SSAB has a procurement policy which governs all of the Group’s purchases. SSAB is a member of the UN's Global Compact and its principles are applied in the work with suppliers. SSAB’s Code of Business Ethics reflects Global Compact principles and represents the most important control document as regards work with suppliers. The Code of Business Ethics places particular emphasis on the abolition of forced labor and child labor.
In its contacts with suppliers, SSAB communicates the Code of Business Ethics and encourages the suppliers to comply with and respect the Code. SSAB has also developed instructions regarding the prohibition of bribery. The Instructions provide employees with clear information on how SSAB defines bribery and improper benefits, and how employees are expected to act in relation to suppliers, customers and other business partners.
Systematic identification of supplier risks
During 2012, a strategy was formulated for the entire Group governing the identification of supplier risks. The strategy places suppliers in various risk categories based on the countries in which the suppliers operate. It elucidates risks relating to, for example, human rights, labor conditions and corruption.
SSAB has more than 10,000 suppliers, and SSAB EMEA alone has approximately 6,000 suppliers. The risk identification survey is in progress. SSAB EMEA’s risk identification survey has prioritized suppliers of raw materials. Stringent quality requirements and long-term business relationships provide the purchasing organization with a good insight into conditions at the suppliers. Within SSAB Americas, SSAB APAC, Tibnor and Plannja, work is also taking place aimed at matching suppliers against the risk map.
Assessment and measures
Work is taking place on developing a joint purchasing system for the Group. With a joint purchasing system for the Group, improved conditions will be created for the continued work on monitoring suppliers.
When the identification of supplier risks is completed and the purchasing system is in place, those suppliers who are placed in the risk class medium level or high level will be required to complete a self-assessment questionnaire. Through the self-assessment, SSAB will obtain more information about, for example, social conditions and environmental conditions at the suppliers. Selfassessment questionnaires have previously been used within SSAB, but in the future SSAB will have a single questionnaire for the entire Group.
During 2012, SSAB has informed and trained the purchasing organizations within SSAB EMEA, Tibnor and Plannja about the ongoing work on developing a common strategy for identifying supplier risks. Training courses are also being planned in SSAB Americas and SSAB APAC.