Our supply chain extends across different markets, and entails numerous relationships. To govern this complex environment, we have a policy framework and processes that guides us in our work. A new tool and programme for reviewing our suppliers have been developed as regards to human rights, working conditions, anti-corruption and the environment. Implementation of the programme was completed in 2018 and all relevant suppliers are now included in the programme.
Centralised sourcing provides Nobia with the opportunity to apply a structured work method in terms of setting requirements, and monitoring and developing suppliers' work. Purchased materials and components are carefully specified and suppliers are risk assessed, inspected and evaluated in accordance with the company's guidelines on the environment, work environment, human rights and business ethics. There is a department responsible for supplier evaluations within Nobia's sourcing organisation. The suppliers selected for evaluation and the scope of the audits are determined based on a risk assessment. Suppliers considered high-risk are prioritised in this process.
Our new risk assessment tool provides us with an excellent opportunity to identify suppliers with higher sustainability risks in new and existing supply chains so that we can better direct our energies towards necessary audits and streamlining our work, which will lead to greater sustainability.
Out of 309 suppliers in the programme in 2018, 88 per cent had undergone complete initial review during the year.