Gränges’ regional quality and purchasing teams regularly assess supplier performance to make sure suppliers meet the company’s requirements. Supplier assessments focus on evaluating suppliers’ quality and delivery performance but also include sustainability criteria such as environment, human rights, labour laws, as well as health and safety.
Gränges’ operations in Asia and Europe assess suppliers’ sustainability practices before entering into a supplier agreement, and thereafter on a regular basis using tools such as supplier scorecards. Supplier audits are conducted periodically depending on suppliers’ strategic importance and supplier performance. During 2019, 7 (10) supplier audits were conducted, none with significant deviations.
Gränges’ operations in Americas assesses critical suppliers’ sustainability practices before entering into a supplier agreement, and thereafter perform assessments twice per year. Supplier audits are to be conducted if a supplier is assessed to underperform and does not have sufficient quality management system procedures in place. During the year no such audits were carried out.
Updated responsible sourcing programme
In 2019, Gränges updated its group-wide responsible sourcing programme through which the company aims to identify, follow up, and improve suppliers’ sustainability performance and mitigate associated risks. The programme will be implemented from 2020.
As part of this programme, Gränges plans to regularly screen its supplier base and identify potential risk suppliers through evaluating environmental, social and corruption risks in different sectors and countries. Suppliers identify ed as having potential sustainability risks will be asked to perform a sustainability assessment. Gränges will use the results from this assessment to decide how to manage suppliers through for example on-site visits.
Gränges sees this programme as an opportunity to strengthen the collaboration with suppliers to achieve continuous improvements and build lasting relationships.
1) Suppliers with a purchase value above SEK 5 million CNY 5 million or USD 0.5 million.