SSAB has approximately 20,000 suppliers globally. The input materials needed to make iron and steel account for SSAB’s most significant purchases. Suppliers must comply both with SSAB’s own standards and with international social and environmental guidelines in order to remain qualified suppliers for SSAB.
Efficient and responsible sourcing of goods and services
SSAB buys input materials, products and services in most of the countries in which we operate. These materials and services range from input goods like scrap, iron ore, coal and alloys to gas, refractories, zinc, paint, maintenance services and spare parts. SSAB spends more than SEK 40 billion annually on external purchases.
At SSAB, sustainability is an integrated aspect of sourcing operations and supply chain management. We assess suppliers on the basis of quality, delivery reliability, cost and sustainability.
|Where SSAB sources its input materials|
|Iron ore pellets||Sweden, Russia|
|Metallurgical coal||Australia,USA, Canada, Russia|
|Metallurgical coke||Japan, China, Poland|
|Scrap||USA, Sweden, Finland, Russia|
|Limestone||Sweden, Norway, France, Spain|
|Alloys||Brazil, Russia, China, South Korea, Chile, USA etc.|
Incorporating sustainability in sourcing
SSAB has a Supplier Sustainability Policy based on the UN Global Compact principles to which SSAB is a signatory. The purpose of the policy is to ensure that SSAB collaborates with suppliers who share our sustainability values.
The Supplier Sustainability Policy applies to all suppliers providing products and/or services to any SSAB group company and includes requirements on labor and human rights, health and safety, anti-corruption and the environment. In the policy, SSAB also reserves the right to conduct reviews of our direct suppliers or on-site audits to ensure compliance with the policy. All new or updated contracts as from 2017 refer to the Supplier Sustainability Policy, and the same reference is included in our purchase orders.
Identification and evaluation of supplier risks
SSAB classifies our direct suppliers and assesses potential risks. For sustainability assessments we use Maplecroft´s risk indices for human rights, political and environmental risks per specific region. Corruption assessments are based on Transparency International´s Corruption Perceptions index.
Suppliers identified as medium- or high-risk suppliers must complete a self-assessment questionnaire containing questions about governance and their social conditions as well as environmental performance. Unsatisfactory answers are investigated and followed up.
Site visits and audits
SSAB also conducts regular visits to major suppliers around the world, including high-risk suppliers. Suppliers selected for site visits and third party audits are identified in the annual audit plan. Supplier selection is based on many criteria, including a pre-evaluation of the supplier’s social and environmental risk profile taking into consideration also geographic location and product category.
On these visits, purchasers and specialist functions visit production sites and conduct supplier inspections. SSAB has on-site protocols in place and the procurement organization has been trained to evaluate information about the supplier’s social and environmental performance gathered during site visits.
HSEQ cluster for joint evaluations of contractors
SSAB is member of an HSEQ (health, safety, environment and quality) cluster for common evaluations of contractors. Several of SSAB´s contractors working on SSAB´s sites are audited through this cluster by a third party every year.
Monitoring raw material traders
SSAB also sources alloys, coal and coke and refractories through agents and traders. SSAB requires these suppliers to monitor their sources for sustainability commitment and we have an adapted assessment process where they have to declare how they monitor social and environmental compliance in their supply chain.
Actions against modern slavery
SSAB supports and respects internationally proclaimed human rights and has taken a variety of actions to verify the absence of child labor, forced labor, slavery and human trafficking in our supply chain. These actions include sustainability principles for our suppliers, sustainability risk assessments, site visits and audits and training of our employees. SSAB will strengthen the procurement process for certain commodities in order to increase focus on Modern slavery.
SSAB's Slavery and Human Trafficking Statement (link to SSAB UK website)
No conflict minerals in SSAB's steel
“Conflict minerals” is a term used for minerals derived from conflict ridden regions or countries where the mining of certain minerals risks contributing to, or financing, continued conflict and violation of human rights. SSAB does not use conflict minerals (including gold, tin, tungsten and tantalum) and, upon request, provides customers with certification affirming this.