Supply chain responsibility

Our responsibility and commitment to act sustainably is valid not just within our operations, but extends to our supply chains as well. By focusing on environmental and social aspects throughout our supply chains, we can gain long term advantages, principally by reducing risk, reducing cost, and improving our brand value.

Vattenfall has approximately 30 000 suppliers across our four primary sourcing and purchasing streams; goods and services, and commodity fuels, including biomass, natural and low-carbon gases, and nuclear fuel.

Strategy

Through our supplier engagement strategy, sustainability assessments, and collaboration in specific industry initiatives, we are striving to increase our influence in the supply chain, to strengthen relationships with our suppliers, and to improve our suppliers' sustainability performance.

Vattenfall’s Code of Conduct and Integrity governs the way Vattenfall communicates and works with our own employees. Our Code of Conduct for Suppliers and Partners (CoCfSP) defines the company's requirements and expectations of suppliers with respect to sustainability. From 1 April 2023 CoCfSP also applies to partners including but not limited to joint ventures and consortium partners.

The Guide to the Code of Conduct for Suppliers and Partners (The Guide) provides practical examples and best practices for suppliers and partners to implement what is required and expected by CoCfSP.

As Vattenfall has many suppliers and buys a wide range of goods, services and fuels, each with varying risk profiles and legal and sustainability requirements, implementation of our CoCfSP differs. Regardless, we ensure that contracts include either our CoCfSP through an ethical clause, or that they are aligned with relevant industry initiatives such as Bettercoal or the Sustainable Biomass Program, or some combination of these

To learn more about the initiatives we are involved in read more on Supply chain initiatives.

Work in progress

Procurement and business together with support from sustainability experts drive the transition to a fossil free and sustainable supply chain.

Our vision is to build resilient, sustainable, and competitive supply chains to create sustainable value of the business in close collaboration with a decarbonised and sustainable supply chain. We continuously improve our sustainable sourcing and purchasing methods throughout our value chain by developing guidelines, increasing awareness, and standardising processes across our functions and business areas.

Our goods, services and fuel suppliers are screened and monitored for sanctions and adverse media coverage. We carry out an internal risk assessment of our supplier base with respect to the country, product or service category risk and spend. Based on the results, we conduct on-site audits of high-risk suppliers to verify first-hand if our minimum sustainability requirements are met. Corrective actions are taken based on audit findings and are regularly followed up. Implementation of our processes is tracked on a regular basis as we engage in new projects, investments and business relationships.

In line with the International Responsible Business Conduct (IRBC), we are aiming to include sustainability requirements systematically in pertinent product category strategies. Accordingly, sustainability requirements based on Vattenfall’s focus areas, such as CO2, human rights, circularity, are included in tenders of these product categories.

With the ambition to manage supplier-related sustainability risks and impacts beyond first tier suppliers, we are working to increase our knowledge of risks and impacts further down in our supply chains. We believe partnerships and collaborations with stakeholders offer the greatest opportunities for change and we participate in various supply chain initiatives and actively seek dialogue with NGOs and other stakeholders.