To ensure that Gränges’ suppliers share the company’s sustainability principles, significant suppliers* are required to sign Gränges’ Supplier Code of Conduct, including the ten principles of the UN Global Compact. Gränges’ Supplier Code of Conduct states that suppliers shall comply with all applicable laws and regulations, that suppliers shall avoid conflicts of interest; have zero-tolerance for corruption and bribery; compete in a fair manner; have an open, non-discriminatory and safe workplace; respect human rights; provide fair working conditions; and run its operations with respect for the environment. By signing, the suppliers also declare to promote implementation of these principles in their own supply chain.
Gränges’ Supplier Code of Conduct
Supplier assessments and audits
Before selecting new suppliers, Gränges conducts supplier pre-qualification assessments using criteria such as quality, service, price, delivery precision, reliability, ethics and material traceability, as well as social and environmental standards.
Gränges Asia and Gränges Europe regularly assess suppliers’ performance using tools such as supplier scorecards. Supplier audits are conducted periodically depending on suppliers’ strategic importance and results from assessments. Audits focus on evaluating suppliers’ quality and delivery precision, but sustainability related criteria such as environment, labour laws, health and safety, and human rights are also included. If improvements are needed, a corrective action plan is compiled in collaboration with the supplier. Gränges thereafter checks to ensure that the supplier has implemented actions as promised.
Gränges Americas conducts pre-qualification assessments, including assessing suppliers’ sustainability practices, on all critical suppliers**. Suppliers’ quality performance is then assessed on a semi-annual basis and if a supplier is assessed to underperform and does not have sufficient quality management system procedures in place, supplier audits are to be conducted.
To enforce responsible sourcing practices across the industry, Gränges participates in the industry association Aluminium Stewardship Initiative (ASI).*** ASI is a global, multi-stakeholder, non-profit standards setting and certification organization which works to maximise the contribution of aluminium to a sustainable society. Through its membership, Gränges aims to promote greater sustainability and transparency in the aluminium value chain.
* Suppliers with a purchase value above 5 MSEK, 5 MCNY or 0.5 MUSD.
** Suppliers who supply items that are by their nature critical to the quality of products produced.
*** The membership in Aluminium Stewardship Initiative was formalized on 7 January, 2019.