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the supplier chain We set requirements for all our
suppliers through our Supplier Code of Conduct. In this
Code, we clarify our expectations and requirements of
the supplier in connection with human rights, working
conditions, the environment and anti-corruption. The
Code is based on the ten principles of the UN Global
Compact, and through the Code we also support the
eight core conventions of the ILO. Although Kinnarps’
Supplier Code of Conduct sets higher requirements
than national regulations, legislation or standards,
we require the supplier to respect and comply with
the Code. In addition to these basic requirements,
we also set material-specific requirements, based
on ecolabelling, for the material they supply to us.
RISK ASSESSMENT We have mapped and compiled
an overall risk analysis concerning social responsi-
bility in the supplier chain, which aims to show which
general risks may be present. The overall risk analysis
compiles information from several different sources,
both company-specific and publicly available sources,
and conducted risk analyses in the industry. Based
on the risk analysis, three main risk factors have been
identified: country of manufacture, type of process
and type of material.
The conditions in the country where the raw material
is extracted or manufactured are of great significance
to the level of risk. In cases where raw material
extraction or production takes place in countries
with ineffectual judicial institutions and limited legal
certainty, the risk to human rights, working conditions,
the environment and anti-corruption is assessed as
high. At the raw material level, traceability is limited
and thus the risk tends to increase farther down the
supplier chain. The supply chain for textile materials
differs depending on the type of material used. There
is a high risk in the areas of human rights and workers’
rights in both the production of raw materials and in
manufacturing. The risk of violations of human rights
and working conditions depends to a large extent
on the country in which the production takes place.
In forestry, there is a risk that wood has been harvested
illegally. The illegally harvested timber can eventually
end up in legal trade flows through smuggling. The
supply chain for electronic components is often long
and complex and includes numerous subcontractors.
There is a high risk in the areas of human rights and
workers’ rights in both the production of raw materials
and in manufacturing. There are particularly high
risks in the extraction of so-called conflict minerals.
Physically demanding work may entail an elevated risk
in terms of working conditions and health and safety,
and manufacturing involving heavy chemical use may
pose a high risk to health and safety.
In order to assess the risk associated with each
supplier and their specific conditions and working
methods, we conduct risk assessments at supplier
level based on the country of manufacture, type of
process and type of material. In the assessment of the
country of manufacture, we base our work on BSCI’s
country risk list. The risk analyses show that there
is an elevated risk linked to a number of suppliers,
who together account for 4% of the purchasing volume.
FOLLOW UP AND ACTION PLANS In cases where we
deem there to be a greater risk of failure to fulfil the
requirements in our Code, we conduct an on-site audit
at the supplier’s premises. If deviations are identified
during the supplier audit, the supplier draws up an
action plan to rectify the deviation. The supplier’s
action is then followed up by evidence and verifications
or on-site visits. Any deviations need to be remedied
in order for us to initiate or continue with a partnership,
and if the supplier refuses to address our criticisms,
we will terminate the relationship.
All suppliers of materials and components who
have been assessed as having an elevated risk have
been followed up with an audit. This means that 100%
of our suppliers of materials and components for our
products have either been assessed as low risk or have
been audited. The audits show that the conditions
on our supplier sites are generally good. The most
common shortcomings are minor ones connected to
fire prevention and a failure to use PPE, even though it
is available. When we conduct follow-ups of measures
taken by the suppliers, we see that there have been
improvements and that our work has been effective.
PREVENTIVE WORK In recent years, we’ve insourced
the production of certain articles and components
to our factory in Sweden, thereby taking responsibil-
ity for a larger part of the supply chain. We have and
continue to work on insourcing production of plastic
components from primarily suppliers in Asia to our
production in Skillingaryd, and we have also insourced
metal production to our factory in Jönköping.
We insist that all articles purchased must meet
material requirements based on the criteria in the
applicable ecolabels. We have procedures for checking
the origin of all wood raw material with regard to tree