Responsible Supply Chain

For Saab, strong supplier relationships are vital in order to provide customers with world-class products. The suppliers are seen as an extension of the own business and Saab expects them to take ethical, social and environmental responsibility. In many cases, Saab has long-standing relationships with respected suppliers. 

 

SUSTAINABLE PROCUREMENT

In connection with the launch of the supplier code of conduct, Saab amended its contract templates to include a clause on the code of conduct, which is now included in all new contracts and contracts that are negotiated.Saab also began to update its procurement process with an expanded questionnaire for suppliers and a model to classify suppliers based on the risk that they will not live up to the requirements.

SAAB’S SUPPLIERS

Saab annually buys products and services from over 5,500 suppliers. The large share of the purchases is from Sweden and an overwhelming majority of the suppliers are in Europe. Saab has relatively few first tier suppliers in countries where national laws and internationally accepted principles and norms on human rights, labour, anti-corruption and the environment are not fully accepted. The company therefore sees the biggest risks further down the supply chain. Saab primarily buy components and technologies associated with the company’s systems, and to a lesser extent various services.

MONITORING

With a special supplier code of conduct in place, Saab will increase the focus on compliance in 2016. To increasecompetence internally on sustainability and monitoring the supply chain, Saab established a group at the end of the year in which procurement representatives from Saab’s business areas and a representative from Saab’s Corporate Responsibility function participate. The group serves as a centre of excellence for the business areas on these issues.

If a supplier does not live up to the requirements in the supplier code of conduct, Saab's position, as far as possible, is to encourage improvements by working along with them. Serious violations and an unwillingness to co-operate can, however, affect the relationship with the supplier.

CONFLICT MINERALS

Conflict minerals are minerals that are extracted in conflict zones and sold in order to finance further conflict, leading to oppression and violence against local populations. Saab’s aim is to eliminate conflict minerals in its products. During the year, Saab continued to develop routines to provide information on to which extend the company’s products  contain these minerals as well as their origin. The new supplier code  of conduct contains a special section on conflict minerals. In addition, Saab has established a conflict mineral policy and guidelines for control and compliance with the policy.

DIVERSITY AMONG SUPPLIERS

Saab in South Africa promotes diversity among its suppliers by supporting small businesses run by young people, women or other groups that previously faced  discrimination. In addition to financial assistance, Saab provides these companies with mentorships, networking opportunities and help with technology and marketing. In 2015, Saab supported ten companies. The goal is to have them stand on their
own within three years. By helping small companies to grow and become profitable, Saab contributes to economic growth and creates job opportunities in South Africa.