Swedbank has a large number of suppliers and therefore has a big responsibility but also good opportunities to influence them based on sustainability specifications and expectations. The aim is to work together to promote sustainability at every level.
- 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.
- Sustainability assessment
Suppliers are specifically analysed based on approval of the supplier code, country and sector assessments, and a self-assessment. The primary purpose is to support suppliers in mitigating sustainability risks, and to identify and spotlight sustainability opportunities.
- Monitoring and third-party audits
Existing suppliers are mainly monitored through continuous dialog. In this way Swedbank gains a better understanding and can support suppliers with their sustainability challenges and draw attention to opportunities. Furthermore, site visits are made if needed based on the results of the sustainability assessment and to monitor compliance with the agreed-upon actions. Swedbank has entered into an agreement with an external partner to conduct extensive third-party supplier audits on behalf of the bank, e.g. when a supplier visit has not been satisfactory, and also assist with third party assessments and give recommendations.
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 measures against the supplier and whether its contract should be terminated. The Business Ethics Committee can also be consulted if ethical dilemmas arise.