Annual Report and Sustainability Report 2019

SUSTAINABILITY

Quality and safety throughout

Sustainability and Corporate Social Respons­i­bility in the supply chain

Sustainability and corporate social responsibility in the supply chain covers suppliers’ relationships with ethical guidelines, human rights, workers’ rights, anti-corruption, the climate and the environment. Systematic and good collaboration on corporate social responsibility in the supply chain is part of our strategy for responsible business operations. This contributes to reduce risk and increase quality in the value chain.

We follow up our responsibility through clear requirements in our agreements with suppliers as well as risk-based follow-up and audits.

Our position

KONGSBERG has more than 10,000 suppliers globally, with about half of them being Norwegian. This means we help to safeguard jobs and build competence, not only where we have operations, but also to a large extent where we use suppliers. The suppliers are an important part of our value creation, at the same time as we are important and, in many cases, essential to their value creation. We want to work with suppliers that share our values and requirements regarding responsible business conduct. This is specified in our “Supplier Conduct Principles”, which is part of our supplier agreements.

The business areas have established processes and systems for carrying out risk assessments of all critical suppliers and suppliers with purchases above specified limits. The risk assessment covers existing and new suppliers and includes the assessment of environmental conditions, human rights and employee rights, HSE, business ethics and anti-corruption. Based on the result of the initial risk assessment, the supplier is followed up with additional assessment and possible measures.

We see it as our ethical responsibility to ensure that the entire value chain relating to our products satisfies our requirements for sustainability and corporate social responsibility, although the legal responsibility rests with the individual supplier. We follow up our responsibility through clear requirements in our agreements with suppliers as well as risk-based follow-up and audits. Our suppliers are obliged to require the same standards of their subcontractors.

Our challenges

Making sure that all subcontractors throughout the value chain comply with our requirements is our main challenge.

KONGSBERG has a wide range of subcontractors, who we work with to create the very best technological products.

Goals and activities

Goal:
Securing a responsible supply chain, especially regarding environment, climate and human rights.
  • Goals for 2019 - what we said

    • Conduct annual internal training for the purchasing organisation.
    • Develop e-learning for our suppliers.
  • Goals for 2019 - what we said

    • Ensure compliance with our requirements for subcontractors through agreements and audits.
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