BillerudKorsnäs complies with relevant laws and regulations in the countries where we are active. We choose business partners who apply principles in ethical, social and environment-related issues similar to those we apply. BillerudKorsnäs expects the players who have chosen to collaborate with us to adhere to the values expressed in our business code.
Failure to comply with anti-corruption laws and regulations can have very serious consequences. Consequently, BillerudKorsnäs’ employees and business partners must take great care in exercising good judgment and never put themselves or others into a position which may violate our policy or applicable anti-corruption laws.
Since the merger that created BillerudKorsnäs took place in 2012, securing our supply chain has been a strategic and prioritized topic. In 2013, our common process and model for supplier evaluation was launched, featuring a broad evaluation approach covering quality, production, energy, safety, working environment, hygiene, environment, social responsibility and human rights as well as finances.
During 2014, we aimed to primarily evaluate chemical suppliers that constituted at least 40% of our spend. In 2015, we added energy and contractors and aimed for 50% coverage. In 2016, we focused on logistics and aimed for 60% coverage. Each year we have surpassed our goal and are continuing with inexhaustible energy to secure and improve our supply chain.
The model includes risk estimation, self-assessment and improvement meetings with selected suppliers.
Together with qualified staff, the appointed purchaser makes an initial risk estimation covering the evaluation areas mentioned above. This part of the model leads to a prioritization of areas and suppliers.
Selected suppliers then perform a self-assessment containing about 75 questions, which provide a comprehensive view of the suppliers’ attitude, approach and compliance to sustainable and responsible business. The self-assessment is scrutinized and we decide the next steps based on the result. We always provide individual feedback for each supplier’s self-assessment, including suggested improvements and approvals, and in some cases hold an improvement meeting.
A limited number of our suppliers are offered an improvement meeting free of charge. The meeting always includes an audit but is also so much more than that. It is more like a comprehensive discussion about how the parties could jointly improve the value chain. If necessary, a common improvement program is launched.
Based on the findings, the supplier is issued with an approval, a limited approval or a controlled exit. We continuously review and improve our supplier evaluation process and model. In 2017, we will launch additional comprehensive questions related to specific regions or products. We will also introduce a more dynamic assessment grading system.
Figure 1. The supplier evaluation model consists of risk estimation, self-assessment and improvement meetings based on eight perspectives: strategic, safety, responsibility, production, finance, quality, environment and hygiene.