Reviewing suppliers’ CSR performance
Once we have signed a contract with a supplier, we assign a contact person and agree on ongoing communications and governance arrangements based on the type of products or services provided.
We also select three to six suppliers each year – primarily those with the largest impact – with whom we perform an in-depth CSR Review. During the two-day on-site review, we conduct an extensive evaluation of the supplier’s policies, procedures and performance based on the ten principles of UN Global Compact. The review concludes with a commonly agreed action plan for both parties.
The vast majority of Nordea’s suppliers take a positive approach to engaging with us on CSR matters. They embrace it as a business opportunity that can have a positive effect on their business.
Dealing with non-compliances
If a supplier is found to be in breach of our CSR Supplier Policy, we will jointly develop an action plan to address the specific non-compliances. As we wish to do business with ethical and responsible suppliers, we find it important to work together to improve our suppliers’ practices.
A supplier case study
Tieto – a partner in our Extended Delivery Centres in India – has been a supplier to Nordea for 20 years. We selected Tieto for a CSR Review as India is considered to be a high-risk country, and we wanted to make sure that corporate level policies and processes are locally enforced, especially with regard to labour rights.
Among many topics, we discussed Tieto’s approach to labour rights, supply chain management, community engagement, anti-corruption and waste handling. One of the benefits of the process is that there is time to align understandings and expectations so that, by the time of the closing debriefing session, there is often already a consensus between the parties.
The experience demonstrated that Tieto already had a well-established approach to working on CSR issues. But Tieto welcomed Nordea’s assessment and sharing of best practice since it helped them understand where they could improve and encouraged them to take the next steps.