Requirements on suppliers - Requirements on suppliers : Volvo Group Global
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Supply Chain Management

The Volvo Group recognizes responsibility in the supply chain by imposing requirements on its suppliers’ environmental programs and their social responsibility.

Quality requirements have been in force over a lengthy period and are a well-integrated feature of relations and joint development programs with our suppliers.

Standards for suppliers
All suppliers must meet a number of standards to qualify as a supplier. The requirements form part of the model for the evaluation of suppliers, and which include a number of parameters, such as

  • environmental performance and management system
  • financial position
  • management and organization
  • logistics
  • social responsibility performance

Environmental requirements
Requirements regarding suppliers’ environmental programs were introduced in 1996. Current requirements entail, for example, that suppliers must be certified in line with ISO 14001:2004, or be able to produce an action plan for gaining certification during the year. Suppliers must also comply with the Volvo Group’s black and grey chemicals lists which indicate what chemicals are never to be used and what chemicals are to be used with restriction.

Ethical and social requirements
In 2006, ethical and social criteria were added to the requirements.The Volvo Group demands that suppliers and contractors must have knowledge of the Volvo Group Code of Conduct coupled with internal working procedures including the following aspects:

In 2006, ethical and social criteria were added to the requirements.The Volvo Group demands that suppliers and contractors must have knowledge of the Volvo Group Code of Conduct coupled with internal working procedures including the following aspects:
  • comply with laws and regulations of the countries where the supplier operates; when the local laws and regulations are lacking the principles in the Code shall guide
  • the principles described in the Code of Conduct should the minimum level to be used in relations with their employees, business partners and other stakeholders
  • take responsibility for their respective sub-suppliers for deploying these requirements through their supply chain
  • maintain an open dialogue with Volvo Group companies concerning achievements, trends and possibilities for improvements in the area of Corporate Social Responsibility have a system in place to ensure compliance with the Volvo Group's Code of Conduct.

The Volvo Group’s suppliers can be divided into two different groups;

  • suppliers for automotive products
  • suppliers delivering non automotive products.

When it comes to CSR requirements, they are the same for all our suppliers.

To be able to communicate, track and evaluate our suppliers CSR performance, the requirements are integrated into the purchasing processes.

 

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