An effective supply chain provides Gränges with the right raw materials at the right time to enable the company to meet customer requirements. The purchasing is optimised so that the right types of scrap materials, with documented contents, are purchased. In this way, excess scrap from production processes can be used effectively, so that Gränges is able to recycle as much excess material as possible.
Responsible purchasing is also of great importance for Gränges: the ambition is that suppliers shall observe sustainability standards equivalent to Gränges’.
Gränges has a long-term co-operation with a total of some 40 suppliers of material, ingots, alloys and scrap.
The company’s suppliers shall, just like Gränges, strive to minimize environmental impact, take employment law responsibility and ensure good working conditions, not tolerate any form of bribery or corruption, and respect human rights.
In order to ensure that the company acts sustainably, all suppliers of material, ingots, alloys and scrap material, and other larger suppliers shall follow and sign the Gränges Supplier Declaration which was introduced in 2015. By signing the Supplier Declaration, suppliers pledge to observe all applicable laws and regulations, including the 10 principles of the UN Global Compact.
Gränges Supplier Declaration means that suppliers shall have zero tolerance of all types of bribes, corruption and co-operation that breaches competition law, avoid conflicts of interest, have reasonable working conditions, good health and safety standards at their places of work, respect human rights such as not accepting child labour or any form of forced labour, respect for the environment by, amongst other things, minimising damaging emissions and waste production. Suppliers shall, in turn, work to implement the principles outlined in the Supplier Declaration with their own suppliers.
Gränges ambition is to audit all strategic suppliers before initiating partnership, and subsequently to conduct regular audits of such suppliers. Gränges has audited most of its strategic suppliers.
Audits focus primarily on quality, but also issues relating to environment, employment law, health and safety, and human rights. Before Gränges initiates partnership, with larger suppliers, their management systems are also audited to ensure that they meet Gränges’ requirements, and that they are fully implemented. Going forward, sustainability issues will have an even greater importance in supplier auditing.
All strategic suppliers shall be audited by 2020.