To support a sustainable supply chain, a procurement strategy has been established with the vision of being the best in the industry. To get there, Swedbank's procurement unit is working with three overarching areas: minimise risk, enhance positive impacts, and innovate.

To support the strategy, Swedbank has the following components in place:

Supplier Code of Conduct

The central procurement unit requires all suppliers to sign Swedbank’s Supplier Code of Conduct as part of a binding contract. The code governs important areas such as human rights, labour practices, business ethics and the environment. Certain sustainability issues are also included directly in the specific tender.

Sustainability assessment

Suppliers are specifically analysed based on approval of the supplier code, country assessments, and a self-assessment. The primary purpose is to support suppliers in mitigating sustainability risks, and to identify and highlight sustainability opportunities.

Monitoring

To ensure an efficient procurement process, a digital platform is used to effectively manage sustainability-related data, analysis, dialogue and monitoring. In this way, Swedbank gains a better understanding and can support relevant suppliers. Furthermore, site visits and/or extensive third-party sustainability audits are carried out if needed, based on the results of the sustainability assessment and to monitor compliance.

Escalation process

An established escalation process is in place for suppliers that are identified as a high risk in the sustainability assessment. These cases are escalated to the Procurement Sustainability Council, which decides on actions the supplier needs to take and whether the contract should be terminated. The Business Ethics Committee can also be consulted if ethical dilemmas arise.