Hydro has more than 18,000 suppliers globally. The majority are situated close to our production facilities. Our supplier requirements regarding corporate responsibility form an integral part of all stages of the procurement process.
They cover environment, human rights, anti-corruption and working conditions, including work environment. Implementation is risk-based and takes into consideration contractual value and country risk, et al. The principles include auditing rights and the contractors' responsibility toward subcontractors and to their suppliers as well.
Our policy is that contracts with a value above USD 3 million shall include CSR requirements in the contract itself or in a separate declaration that is signed by the supplier. In relevant new contracts, the requirements are usually included in the contract itself. The requirements are valid to all contracts, irrespective of value, which are conducted in high-risk countries or which have high strategic importance. In our Projects organization, which is responsible for all major construction projects in Hydro, all supplier contracts in new projects are following the above requirements.
In 2011, we entered into dialog with certain suppliers and customers about alleged breaches of Hydro policies.
In addition to Hydro's 5 percent ownership stake in MRN in Brazil, we have a long-term offtake agreement to Vale's share of MRN's production. This makes MRN a large supplier of bauxite to Hydro.
