Prepare procurement
Determining the level of the contract clause
The contract clause shall always be applied in procurements that include the Swedish Regions' nationally prioritized purchasing categories. The clause can also be applied in other high-risk procurements if the industry is sufficiently mature in terms of sustainability. For other categories, the Swedish National Agency offers contract clauses at a basic level.
The Swedish National Agency's basic-level contract clauses
The contract clauses are complemented by the Swedish Regions' joint Code of Conduct for Suppliers, which aims to ensure that contracts are fulfilled in accordance with human rights, workers' rights, environmental considerations, and business ethics. The Code of Conduct is based on international frameworks, conventions, and declarations.
Foundation of the Code of Conduct
The contract clause is a special contract condition (In Swedish only), meaning it does not need to be fulfilled at the time of bidding but must be met during contract execution. Unless otherwise stated, the clause takes effect when the contract comes into force.
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How to carry out a risk analysisStep 1: Mapping the supply chain The first step in a risk analysis consists of mapping the supply chain to find out its structure. This includes identifying in which countries the work is carried out, and if possible also in which regions. This is particularly relevant if the work is carried out in any region known to have high risks. Within certain industries such as food, textiles and IT there is a lot of information. For other industries such as pharmaceuticals, however, transparency is low. To obtain this information, you can ask the category manager, the category councils, ask questions of suppliers, find out import data, read audit reports and market analyzes for specific industries. It is also important to identify what type of work is carried out and what type of actors in the supply chain that performs it. Is it, for example, an industry characterized by low wages and health-hazardous processes? Does the workforce consist of migrant workers or seasonal workers? Is the supply chain complex with many subcontractors and a lack of transparency? This type of information is important as both geographical risks, industry risks and product risks need to be taken into account. Step 2: Gather information from credible and independent sources Once you have mapped the origin and the supply chain, the next step is to gather information about the situation of human rights, workers' rights, the environment and business ethics in the relevant countries where the work is carried out, that is, both for final manufacturing, component manufacturing and raw materials. For this you need to turn to credible and independent sources such as international organizations, authorities, voluntary and civil society organizations and global trade unions. Sources Step 3: Identify and assess negative impacts The last step involves assessing the actual and potential negative impact the supply chain is associated with, based on the information that has been compiled in steps 1 and 2. This is to be able to determine which concrete measures need to be taken to manage the risks. Often several risks have been identified and to prioritize them you need to make a seriousness assessment. The most significant risks are prioritized based on probability and seriousness ( read more under point d in process requirement 2 )
Supplementing and finalizing the contract clause
As a buyer, you need to supplement and finalize the contract clause. Placeholders within square brackets, such as [the contracting organization], shall be replaced with relevant information. Once the contract clause is finalized, it shall be included in its entirety in the procurement documents to ensure transparency.
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How to carry out a risk analysisStep 1: Mapping the supply chain The first step in a risk analysis consists of mapping the supply chain to find out its structure. This includes identifying in which countries the work is carried out, and if possible also in which regions. This is particularly relevant if the work is carried out in any region known to have high risks. Within certain industries such as food, textiles and IT there is a lot of information. For other industries such as pharmaceuticals, however, transparency is low. To obtain this information, you can ask the category manager, the category councils, ask questions of suppliers, find out import data, read audit reports and market analyzes for specific industries. It is also important to identify what type of work is carried out and what type of actors in the supply chain that performs it. Is it, for example, an industry characterized by low wages and health-hazardous processes? Does the workforce consist of migrant workers or seasonal workers? Is the supply chain complex with many subcontractors and a lack of transparency? This type of information is important as both geographical risks, industry risks and product risks need to be taken into account. Step 2: Gather information from credible and independent sources Once you have mapped the origin and the supply chain, the next step is to gather information about the situation of human rights, workers' rights, the environment and business ethics in the relevant countries where the work is carried out, that is, both for final manufacturing, component manufacturing and raw materials. For this you need to turn to credible and independent sources such as international organizations, authorities, voluntary and civil society organizations and global trade unions. Sources Step 3: Identify and assess negative impacts The last step involves assessing the actual and potential negative impact the supply chain is associated with, based on the information that has been compiled in steps 1 and 2. This is to be able to determine which concrete measures need to be taken to manage the risks. Often several risks have been identified and to prioritize them you need to make a seriousness assessment. The most significant risks are prioritized based on probability and seriousness ( read more under point d in process requirement 2 )
Requesting information about final manufacturing country
Ensure that price lists and statistics include information about the final manufacturing country and, if possible, the city. This is important from both a sustainability and supply chain perspective.
During office audits, the implementation of policies and processes is reviewed through sampling. To select relevant samples, you should analyze which products have the highest risk of adverse impacts, which requires information about final manufacturing country. When addressing severe deviations, follow-up is also easier if you already know which suppliers manufacture in risk areas.
Moreover, natural disasters and conflicts can affect deliveries. By knowing where final manufacturing takes place, you can quickly contact suppliers to assess potential delays.
Informing suppliers about the contract clause
Once the procurement documents are finalized, it is time to publish the procurement. At the same time, inform suppliers about the contract clause — both the Code of Conduct for Suppliers and the due diligence process. Feel free to refer them to this guidance.