Supplier's commitments
Code of conduct
The contract clause refers to the Supplier Code of Conduct, which is an appendix.
Excerpt from the contract clause
Supplier shall fulfil the contract in accordance with the commitments in appendix [1] Supplier Code of Conduct regarding human rights, workers' rights, the environment and business ethics and take the measures specified in [this chapter/agreement section].
The commitments apply to all operations connected to what is purchased.
The commitments cover human rights, workers' rights, the environment, and business ethics. They are based on the UN Global Compact, international conventions, and declarations.
The code of conduct also includes a general commitment to respect human rights, in line with Principle 11 of the UN Guiding Principles on Business and Human Rights.
"Business enterprises should respect human rights. This means that they should avoid infringing on the human rights of others and should address adverse human rights impacts with which they are involved."
The UN Guiding Principles are non-binding and therefore use the word "should" instead of "shall."
Human rights
The responsibility to respect human rights is a global standard for expected business conduct, regardless of where companies operate. It exists independently of states' ability or willingness to fulfil their human rights obligations, and does not diminish those obligations. The responsibility therefore exists beyond compliance with national laws and regulations that protect human rights.
So, what are human rights?
Human rights are inherent in all human beings, whatever their nationality, place of residence, gender, national or ethnic origin, colour, religion, language or any other status.
Every individual is entitled to enjoy human rights without discrimination.
The rights are interrelated, interdependent and indivisible.
The Universal Declaration of Human Rights is the cornerstone of modern human rights law. It has been codified through the International Covenant on Civil and Political Rights and the International Covenant on Economic, Social and Cultural Rights. Together they form the International Bill of Human Rights.
The International Bill of Human Rights and the ILO Declaration on Fundamental Principles and Rights at Work serve as the reference point for the supplier's commitment to human rights.
More information about the ILO Declaration can be found in the section on workers' rights.
(Video in Swedish)
Workers' rights
The commitment to workers' rights is based on the ILO Declaration on Fundamental Principles and Rights at Work. The ILO is the UN’s specialized agency for employment and labour issues.
The declaration commits Member States to respect and promote fundamental principles and rights, regardless of whether they have ratified the fundamental conventions.
The core conventions are ten in number and concern five different areas:
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freedom of association and collective bargaining (ILO 87 and 98)
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forced labour (ILO 29 and 105)
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child labour (ILO 138 and 182)
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discrimination in employment (ILO 100 and 111)
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safe and healthy working environment (ILO 155 and ILO 187).
The commitment to workers' rights also includes the promotion of a living wage, reasonable working hours and regular employment. This section of the Supplier Code of Conduct has been developed in close dialogue with the ILO and is based on Ethical Trading Initiative's Base Code.
(Video in Swedish)
The environment
The environmental commitment is divided into two parts.
The commitment to climate and environmental impact is about:
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compliance with national environmental legislation
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promotion of climate measures that contribute to achieving national and international climate goals
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reduction in the use of virgin raw materials
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no use of raw materials from species listed in CITES
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control or evaluation of chemical use including, if applicable, substitution and/or implementation of alternative processes
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storing, handling, transport and disposal of waste in a manner that protects the health of workers, people in surrounding communities and the environment
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promition of strategies for efficient water use where applicable
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reduction or elimination of emissions that pose a danger to health and the environment.
The commitment to environmental rights begins with people's right to self-determination and to freely dispose of natural wealth and natural resources. A people must in no case be deprived of their means of livelihood. The commitment then includes a statement that illegal eviction or taking over of land, forest or water must not occur. There is also a special provision that indigenous peoples' right to land, territories and natural resources must be respected, including the right to free, prior and informed consent. Finally, the right to a safe, clean, healthy and sustainable environment shall be respected.
(Video in Swedish)
Business ethics
The commitment to business ethics covers corruption, anti-competitive behavior and taxation. The scope is wider than that of the UN Global Compact, which only covers corruption — the only topic covered by the regions' previous code of conduct for suppliers.
Counteracting anti-competitive behavior is crucial for a well-functioning market. The commitment is based on the OECD Guidance for Multinational Enterprises, which emphasize the importance of avoiding agreements that distort competition or abuse a dominant position.
Regarding taxation, the commitment — developed in collaboration with the Swedish Tax Agency — aims to prevent the misuse of welfare systems, ensure that companies pay the correct tax in the right country, and promote fair competition.
(Video in Swedish)
Connection to what is purchased
In public procurement, contract clauses must relate to the subject matter of procurement, which means that they must have a clear connection to what is purchased. This is stated in Chapter 17, Section 1, second paragraph, of the Public Procurement Act, with reference to Chapter 16, Section 2, second paragraph, of the same Act:
"An award criterion is considered to be connected to the supplies, services or works to be purchased if the criterion in some way relates to the supplies, services or works at any time during their life cycle."
This also means that public buyers can set requirements that take into account the entire supply chain. However, the responsibility for adverse impacts depends on whether the supplier causes, contributes to, or is linked to the adverse impact.