To support a sustainable supply chain, Swedbank has established a sustainable sourcing strategy:

“Swedbank’s sustainable sourcing strategy is to effectively drive change through continuous dialogues with suppliers where Swedbank can make most change in terms of reducing negative impact, increasing positive impact and mitigating risks, within sustainability topics considered relevant for the bank based on a double materiality assessment methodology.

To support the strategy, Swedbank has the following components 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.

Sustainability assessment

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 impact risks and challenge suppliers in enhancing their sustainability work.

Monitoring

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 carried out if needed to monitor compliance.

Escalation process

An established escalation process is in place for suppliers that are identified as not meeting sustainability requirements and expectations. A dialogue with the supplier is firstly initiated where a Corrective Action Plan is agreed upon to close identified gaps. These cases are escalated to the Procurement Sustainability Committee if needed, which provides guidance on actions the supplier needs to take and whether the contract should be terminated. The Business Ethics Committee can also be consulted if ethical dilemmas arise.