The objectives of the program are:
- To systematically assess opportunities to improve performance and mitigate risk in our supply chain
- To mitigate risks in order of importance and opportunity
We continue to assess new and existing suppliers in our supplier evaluation system covering commercial, quality and sustainability performance, with target coverage of at least 90% of total spend at all times. Significant suppliers have been screened on human rights issues, including freedom of association, nondiscrimination, working hours, wages and benefits, disciplinary measures, child labor, and forced labor. Furthermore, in 2011 we have finalized all the 168 open supplier action plans, developed for noncompliant suppliers in 2010 through dialogue with suppliers to resolve commercial, quality, and sustainability issues or, in a few cases, discontinuing further purchases from selected suppliers.
As we move along, the ambition is to include more supplier development and collaboration in the sustainable supply chain program. Focus areas in 2012 will include enhancing our suppliers’ sustainability performance through clearer supplier requirements to be implemented at the beginning of 2012, along with internal training for purchasers and auditors. Another intention of the program is to promote and reward superior sustainability performance through incentives, capacity building, and engagement projects. Our next steps to boost supply chain sustainability will also focus on substitution of selected raw materials with sustainable alternatives, having lesser environmental impact. We plan to start involving suppliers more openly in innovation and finding joint sustainable solutions, to improve performance throughout our supply chain.