Swedbank has a large number of suppliers and therefore a big responsibility as well as a good opportunity to influence the suppliers based on sustainability specifications and expectations.
To support a sustainable supply chain a procurement strategy has been established with the vision to be the best in the industry. To get there, the procurement unit is working with three overarching areas: minimize risk, enhance positive impacts, and innovate.
To support the strategy Swedbank has the following in place:
Supplier Code of Conduct
The central procurement unit requires all suppliers to sign Swedbank’s Supplier Code of Conduct as part of a binding contract. The code governs important areas such as human rights, labour practices, business ethics and the environment. Certain sustainability issues are also included directly in the specific tender.
Suppliers are specifically analysed based on approval of the supplier code, country assessments, and a self-assessment. The primary purpose is to support suppliers in mitigating sustainability risks, and to identify and spotlight sustainability opportunities.
To ensure an efficient procurement process a digital platform is used to effectively manage sustainability related data, analysis, dialogue, and monitoring. In this way Swedbank gains a better understanding and can support relevant suppliers. Furthermore, site visits and/or extensive third-party sustainability audits are made if needed based on the results of the sustainability assessment and to monitor compliance.
An established escalation process is in place for suppliers that are identified as a high risk in the sustainability assessment. These cases are escalated to the Procurement Sustainability Council, which decides on actions the supplier needs to take and whether its contract should be terminated. The Business Ethics Committee can also be consulted if ethical dilemmas arise.