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Responsible supply chain

Our more than 30,000 suppliers are important contributors to the success of our business. We engage, influence and work with our suppliers for continuous improvement.

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We are committed to promoting the principles of the Universal Declaration of Human Rights, UN Global Compact and IFC, among others, to our suppliers. Our approach to responsible sourcing is based on the OECD Due Diligence Guidance for Responsible Business Conduct and can be summarized in three main steps:    

Mapping of risks  

Prior to working with Hydro, all suppliers are subject to a qualification process. Included in this process are mapping of risks related to business practice, human rights, working conditions and environment. If we identify any concerns related to these issues, we conduct a more comprehensive review of the potential suppliers to clarify if the supplier meets our requirements, before any agreements are signed. We assess our supply chain and monitor risks continuously.  

Clear expectations 

Suppliers that have a direct contractual relationship with Hydro have to adhere to the principles set out in Hydro's Supplier Code of Conduct. The code is based on international recognized standards such as the eight core conventions of the ILO Declaration (International Labour Organization). In our standard contracts the principles set in the code have contractual clauses. Failure to comply with the principles may result in a termination of the contract.  

Support and development  

We build our relationship with our suppliers on mutual trust and development. We actively discuss and promote ethical business practice, safe working conditions, human rights and environment issues. Through tools such as regular reviews and audits, we contribute to continuous development. We are an active member of ASI and promote ASI’s certification program to our suppliers for a sustainable development of their business. We also cooperate with other external stakeholders, such as unions and industry associations, to develop and implement supplier development programs.

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