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.
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.
As part of Hydro’s commitment to responsibility, including our Human rights policy on respecting human rights in our own operations and in our supply chain, Hydro seeks to source raw materials that require the use of tin, tantalum, tungsten or gold (known as 3TG) from conflict-free sources. In general, Hydro's sourcing of 3TG is limited with a few exceptions of small volumes.
Hydro expects its suppliers to have appropriate policies and due diligence measures in place that will allow us to reasonably determine if products and raw materials containing conflict minerals originate from conflict-free sources, including those from the Democratic Republic of the Congo (DRC) and its surrounding areas.
In support of this Hydro will:
- Exercise due diligence of our relevant suppliers consistent with the Organisation for Economic Co-operation and Development's Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas and expect those suppliers to do the same with their individual supply chain; and
- Engage and collaborate with our suppliers to communicate the use of conflict-free supply chain for Hydro’s products, and
- In the event that a direct supplier is found to supply us with necessary conflict minerals that have not been procured through a validated supply chain or that are otherwise found to have financed conflict, we will take action, such as recommending that such supplier seek alternative means of sourcing, or failing that, we will reassess the supplier relationship, and
- Periodically review our conflict minerals position to ensure ongoing suitability in addition to our suppliers’ basic obligations to comply with Hydro standards.
Hydro’s Supplier Code of Conduct sets out the minimum requirements for all our suppliers.