Holmen has for several years worked with a Supplier Code of Conduct. The purpose of this Code is to work for a sustainable development which includes respect for internationally recognised principles relating to anti-corruption, human rights, health and safety, and the environment.
Holmen's Purchasing Policy places great emphasis on social responsibility. The purchasing organisation sets requirements whereby the principles contained in Holmen's Supplier Code of Conduct must be complied with in new purchase agreements. By the end of 2017, suppliers accounting for more than 80 per cent of the Group's purchasing volumes had signed up to the Supplier Code of Conduct.
As a signatory to the UN Global Compact, Holmen has undertaken to uphold and respect human rights in its sphere of influence. Since suppliers fall within this circle, it is important to set clear requirements for them on the issue of human rights. The Code of Conduct covers all the areas touched upon by the Global Compact.
Since 2017, Holmen has used an external partner, EcoVadis, to follow up supplier compliance with the Code in the areas of human rights, health and safety, the environment, business ethics and purchasing. The evaluation is tailored to the size of the supplier in terms of turnover and number of employees, and the supplier's exposure to risk in terms of its geographical presence.
If the evaluation shows that the principles of the code have not been complied with, the supplier must rectify the problem and draw up a plan to ensure that the problems are not repeated. The purpose of the Supplier Code of Conduct is to improve conditions for those who work in Holmen's value chain, and it is therefore important that suppliers are given an opportunity to correct shortcomings in the business. In the event of repeated failure to comply with the principles, however, the contract with the supplier may be terminated.
In 2017 about a hundred strategically important suppliers were assessed with an average exceeding the pass mark. Only a few suppliers demonstrated significant shortcomings in individual areas, and these were tackled through action plans, which were followed up during the year.