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Suppliers

Our suppliers are essential in our daily operations. Therefore, it is important for us that our entire supply chain adheres to fair operating practices and human rights.

Aspirational goal

To ensure safe working conditions throughout the supply chain, that business operations are environmentally sound, and that business is conducted in accordance with internationally recognized principles for business ethics and human rights.

We expect and require that our suppliers, and their supply chain, adhere to the same high standards as Terma.

We take pride in having a responsible supply chain.
 

Implemented Activities

Objective
To ensure that our supply chain for our production sites adhere to fair operating practices and human rights by evaluating our suppliers’ CSR policies, business ethics and behaviors.

Background
Terma wants to be a well-recognized supplier by setting high ethical standards for ourselves and our stakeholders, and therefore we in 2011 started to evaluate all of our suppliers outside OECD. At that point we did not find any, who did not operate according to our ethical standards; however, these suppliers represent only a small portion of our total procurement volume.

Activity
In 2013-2015 we have been focusing on the suppliers within OECD. So far we have screened more than 70 % of our supply based according to our procurement volume in FY14/15. All screened suppliers comply with our standards.

To reach the goal Terma has established a process and procedure in our quality system for the compliance of our business ethics. All new suppliers will be asked to fill out a short questionnaire and to provide confidence that they comply.

In order to improve the environment regarding the use of RoHS- and Reach-compliant components, an internal process has been established to secure an overview of needed actions towards suppliers, if their components do not comply with these regulations.

In FY 2015/16 we will continue to screen our existing supplier base given by purchase volume, and thereby having screened up to 85 % volume wise.

The actual screening will provide evidence and confidence that our suppliers have ethical standards in line with the ones at Terma.

Measuring
Each supplier will be asked to fill out a questionnaire and to provide evidence that they comply with our ethical standards. This screening also goes for all new suppliers.  

Way Ahead 2015-17

Objective
To ensure that our supply chain for our production sites adhere to fair operating practices and human rights by evaluating our suppliers’ CSR policies, business ethics, and behaviors.

Background
Terma wants to be a well-recognized supplier by setting high ethical standards for ourselves and our stakeholders.

Activity
In FY 2015/16 we will continue to screen the next group of suppliers, and thereby have screened up to 85 % of our supplier base by volume. This activity will continue in FY 2016/17 and will then cover 90% and finally in FY 2017/18 all suppliers will have been evaluated.

Measuring
Each supplier will be asked to fill out a questionnaire and to provide evidence that they comply with our ethical standards. This screening also goes for all new suppliers.

The outcomes of the above activities and measures have resulted in, that all new suppliers from 2014 and onwards have been screened for compliance with the business ethics of Terma, and the process is thereby fully implemented.

Further the remaining supplier base will be in a transition period until the end of FY 2017/18. The aim is to have all suppliers evaluated and assessed before the end of that period.

Contact

Justine Wicikowski Graff
Compliance Officer
T: +45 4594 5599
E: jwg@terma.com

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