As a global company with manufacturing and sales operations across the world, we are reliant on many of our suppliers to ensure timely delivery to our customers. Our suppliers are the “extended operation” from our very own production facilities and infrastructure, and we therefore, expect the same high level of commitment from our suppliers; above all, in the area of code of conduct and environmental commitment.
To effectuate the communication of our requirement and expectation upon our suppliers, we issued the SKF Code of Conduct for Suppliers and sub-contractors, where a clear reference to this code is made in the SKF General Conditions of Purchase.
From words to actions
- All new suppliers are required to sign and thereby formally agreed to adopting the SKF Code of Conduct for Suppliers and Sub-contractors, the SKF Environmental, Health and Safety (EHS) Policy as well as the Zero Defects concept as conformance and performance standard;
- All new suppliers of direct materials must be approved via on on-site audit, where compliance to the EHS requirements and the Code of Conduct for Suppliers and Sub-contractors are audited;
- All major suppliers are required to issues a code of conduct in line with SKF's and be certified according to ISO 14001 management system;
- All energy intensive major suppliers are required to report on energy use carbon emissions;
- All major suppliers are audited regularly (at least once every three years) where compliance to EHS and Code of Conduct requirements are part of the audit scope;
- A risk assessment tool is used to help identify high-risk non-major suppliers, based on their relativity in aspect such as geographical locations, number of employees, risk exposure in terms of environment, health and safety, as well as human and labour rights violations. Identified high-risk suppliers are subsequently subject to additional auditing by SKF
A Responsible Sourcing Committee was established in 2009 to define strategy and determine appropriate actions when critical deviations are identified at suppliers. A responsible sourcing system was also introduced in 2009 and further developed in 2010, to enhance the process of enforcing the Code of Conduct.
With more than 10,000 suppliers located across the world, we regard responsible sourcing as a journey than a destination. Only by working step by step, continuously improving our existing processes, we can make steady progress in sharing with our suppliers our commitment to a sustainable and responsible business growth and development.
The SKF Code of Conduct for Suppliers and Sub-contractors is the foundation of SKF's responsible sourcing programme. Read more about this on SKF Supplier Portal.