Centralised sourcing provides Nobia with the opportunity to apply a structured work method in terms of setting require¬ments, 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 and quality.
Of our suppliers of direct material, 99% are from Europe and the remainder from Asia. Global supplier chains can involve labour-related risks, such as modern forced labour. Nobia works actively to prevent all forms of modern slavery and we report our work and results annually in accordance the so-called Modern Slavery Statement.
Programme for responsible sourcing
Our programme for responsible sourcing covers risk analysis, review and evaluation and contains an anonymous channel for reporting violations of our Supplier Code of Conduct. Our Supplier Code of Conduct regulates and governs Nobia’s supplier requirements concerning working conditions, human rights, business ethics and environmental considerations. The programme covers approximately 300 suppliers, corresponding to 99 per cent of the total cost for direct materials. Based on factors such as country of production, production process, product type and materials, risk is weighed against preparedness and we assess the risk of violations of legal frameworks and Nobia’s Supplier Code of Conduct. The risk assessment is the basis for decisions on audits at the supplier.
Physical supplier audits are intended to identify, manage and ameliorate any deviations and to identify areas for improvement. During the audits, we can highlight positive examples and significant improvement work. During the year, we conducted no physical audits due to coronavirus pandemic. All outstanding audits have been rescheduled to 2021 and we plan to commence these in the summer. At the end of the year, 92% of all suppliers in the programme were approved, while the remainder were awaiting a new or updated audit.
Exercising influence further up the supplier chain
Our responsible sourcing programme is a prerequisite for us in conducting risk analysis and risk prevention in our supplier chain in a quality-assured manner. In order to promote the reduction of sustainability risks even further up the supply chain in accordance with the objective in our new sustainability strategy, we ask our suppliers to also communicate to their relevant subcontractors.