Supplier's due diligence

We explain what is included in identifying, assessing, preventing, mitigating, and remedying adverse impacts. In the guidance for each process requirement, you will also find supporting documents and suggested verifications to demonstrate compliance with the clause.

Commitments

Reporting obligation

Uppförandekoden

What is due diligence?

In the OECD Due Diligence Guidance, the concept is defined as follows:

"Due diligence is the process enterprises should carry out to identify, prevent, mitigate and account for how they address actual and potential adverse impacts in their own operations, their supply chain and other business relationships."

Within the scope of the contract clause on due diligence for sustainable supply chains, the concept includes identifying, assessing, preventing, mitigating, and remedying adverse impacts on people, the environment, and society in your own operations and in your supply chains.

This means that the contract clause contains both results requirements and process requirements: to ensure compliance with the commitments on human rights, workers' rights, the environment and business ethics, you must have a due diligence process. Simply put, the code of conduct describes what needs to be achieved, while the due diligence process explains how it should be achieved.

Excerpt from the contract clause

To ensure compliance with the commitments in the Supplier Code of Conduct in section 1, Supplier shall have a due diligence process in accordance with sections 2.1 - 2.7. The process shall be documented and applied from [contract start/other time determined by the contracting organisation]. Through this process, Supplier shall identify, prevent, mitigate and remedy adverse impacts on people, the environment and society in its own operations and supply chains. This means that:

Process requirements

Integrate commitments into policies and allocate responsibility for policies and due diligence

We explain the requirements for policies and how responsibilities shall be allocated between the board of directors, managers, and employees.

Prevent and mitigate adverse impacts that supplier causes or contributes to

We explain the responsibility to cease activities that cause or contribute to adverse impacts, establish action plans, and promote sustainable purchasing practices.

Monitor the measures to prevent and mitigate adverse impacts

We explain what we mean by following-up action plans, meaningful consultations with rights-holders, and addressing deviations.

Provide for remediation

We explain the concept of remediation, when you are obliged to remediate, the need to engage in meaningful consultation with affected rights-holders, and to assess whether they are satisfied with the process and outcome.

Identify and assess adverse impacts

We explain the concepts of risk suppliers, supply chain mapping, rights-holder consultations and particularly vulnerable groups, as well as how to prioritise risks based on likelihood and severity.

Use leverage to prevent and mitigate adverse impacts linked to the operations

We explain the responsibility regarding supplier assessments, action plans, and the forwarding of requirements—including transparency—as well as the ability to temporarily suspend or terminate the contract.

Enable complaints

We explain the key functions of complaints procedures, for which stakeholders they should be accessible, and the need to address submitted complaints.

Commitments

Reporting obligation

Supplier's due diligence

What is due diligence?

​

Process requirements​

Process requirements