Sustainable supply chain
Scandi Standard’s operations are highly dependent on good and effective supplier partnerships. We strive for mutual, responsible business relationships.
As well as chicken, we buy other ingredients, equipment and services from a high number of suppliers. Purchases are coordinated at a Group level for categories related to production, which includes ingredients, packaging materials and transport.
Supplier Code of Conduct
Our Supplier Code of Conduct provides the foundation for this, setting requirements for the environment, ethics, human rights and social responsibility that equate to the Group’s own Code of Conduct. Our suppliers must also ensure that these requirements are passed on down the chain, i.e. to their subcontractors. The Group’s Head of Sustainability is ultimately responsible for the contents and implementation of the Supplier Code of Conduct, in close collaboration with the Group purchasing function.
The Supplier Code of Conduct is communicated with the requirement to confirm compliance, to all suppliers in priority purchasing categories: chickens, transport services, technical equipment and packaging materials, as well as spices and other ingredients.
Our systematic work is based on risk assessments. This includes a risk screening at supplier level based on risk parameters, such as production country as well as category/industry-specific risks linked to the environment, human rights and ethical issues. In order to identify risks and potential deviations, we are continually striving to ensure greater transparency in our supplier relationships, beyond the first link in the supply chain.
We also ask our suppliers to complete a self-assessment form in order to assess risks and performance at supplier level. These responses provide supplementary data to help us prioritize where we need to focus our work on additional monitoring and audits, as well as other initiatives.
During 2019 approximately 120 of our suppliers had been evaluated against the Code of Conduct. On the whole these results show that most of our suppliers have well-developed systems in place for managing risks linked to the areas in the Supplier Code of Conduct. Our goal is to have 98 percent of the suppliers in our priority categories evaluated in 2020 and set up action plans for the suppliers that are assessed as not being up to standard.