Description of risk and consequence
Ethical, environmental and social risks
Ethical risks in the supply chain are related to bribery and other types of corruption. Among the countries that Gränges sources metal from, there are a few that, according to Transparency International’s Corruption Perceptions Index for 2018, are deemed to have a higher risk for corruption.
Environmental risks in the supply chain are mainly connected to environmental permits and the potential lack of compliance.
Labour law risks include unfair working conditions. In certain regions there is a risk of child labour.
Supply of slabs and other materials
Gränges depends on the supply of commodities, mainly aluminium. Insufficient supply means that Gränges cannot produce certain end products. In the future, depending on chosen end designs, special material types may be more difficult to source due to their particular characteristics
Supplier Code of Conduct, assessments, and audits
To ensure that suppliers have zero tolerance for corruption, provide reasonable working conditions, ensure good workplace health and safety standards, and respect human rights and the environment, significant suppliers must sign and follow Gränges’ Supplier Code of Conduct. Suppliers thereby declare to observe all applicable laws and regulations, including the ten principles of the UN Global Compact.
Furthermore, Gränges aims to periodically conduct supplier assessments and audits of its strategic suppliers to make sure they adhere to the company’s sustainability requirements.
Gränges enters into agreements with suppliers in each market to ensure deliveries based on estimated volumes. Gränges has its own cast house in the production facilities, making it less sensitive to supply issues regarding for example slabs.