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Responsible Supply Chain Management

Terma recognizes that its’ social, financial, and environmental impact is highly linked to its supply chain and business partners, and we therefore hold our suppliers, business partners, and other stakeholders to the same standards as we hold ourselves.

Related principles and SDGs
UNGC Principles: All 10
SDGs: 8, 12, 16

Why this matters to society Why this matters to Terma
Just like Terma’s own, the CSR performance of the companies in our supply chain has an impact on the societies in which they operate. Our engagement towards CSR also means being a responsible supply chain partner and engaging with our suppliers on CSR challenges. This has the potential to generate a closer relationship with suppliers and raising the bar for responsible business conduct.


Our goals

  • Having a responsible procurement system with risk management and in-depth understanding of our suppliers, including collaboration on specific projects
  • Developing relevant policies, procedures and documentation 
  • Roll out of new due diligence setup with Third Party Code of Conduct
  • Conducting recurring training for relevant employees in Supply Chain and Procurement departments
  • Ensure a continuously updated risk assessment and mapping of supplier base


Integrating social responsibility in the supply chain

Being a responsible company means engaging where possible in our sphere of influence to ensure that our partners adhere to the same principles as we do. It is about raising awareness, clarifying the requirements and standards. It is evidently working with our supply chain towards reducing the environmental and social risks. Terma is working towards building a responsible procurement system, and some initial steps have been to review our approach to responsible supply chain management and gaining a better understanding of the risks we might face. An initial assessment of the risks linked to the categories and countries we purchase from has been carried out to gain an overview, establishing a foundation for our systematic approach. To firmly anchor this within the organization, several workshops have been conducted to discuss the potential social and environmental impacts of the goods Terma purchases for our production. In order to engage with our supply chain partners, we will launch a new Third Party Code of Conduct that clearly communicates the expectations and requirements of working with us. Another step in refining the CSR assessment of our supply chain will be to improve our due diligence mechanisms by including social and environmental concerns in our workflows. This way it will be fully integrated in the way we select our suppliers in the future. Working systematically to ensure this responsibility is taken in our supply chain not only minimizes risks but also increase the product quality of the goods we purchase.



  • 1,470 employees 
  • Terma operates in 16 locations in 9 countries on 3 continents 
  • Suppliers in 49 countries 
  • Nearly 97 % of our 1st tier supplier base is located in OECD countries 
  • 2 production facilities in Denmark

Satnam Kaur Nanda-Jørgensen
Specialist, CSR & Compliance
T: +45 8743 6000
E: sknj@terma.com


You can write to us at responsibility@terma.com.