We believe that by actively engaging with our suppliers to bring sustainability topics forward, there will be a mutually beneficial impact on both our suppliers' and our own performance.
We rely on hundreds of suppliers in our operations, and therefore we have recognized sustainable supply chain management to be an important element in deploying our vision. We also believe that by actively engaging with our suppliers to bring sustainability topics forward, we can contribute to tangible improvements in both our suppliers' and our own performance.
With the purpose of communicating our sustainability expectations better and ensuring a responsible supply chain from materials sourcing all the way to our distributors, Vaisala has a Supply Chain Sustainability Development program which is being further developed in 2016. The scheme is intended to be a long-term process for better identifying and managing risks and opportunities, aligning our supply chain partners' sustainability efforts with our own, and encouraging continuous development and closer collaboration through a constructive dialogue. The tools and resources of the program is part of continuous supply chain management and ESG-topics are brought up regularly with key suppliers.
Key components of the program:
- Supplier Code of Conduct
- Supplier ESG Self-assessment Questionnaire
- ESG-guidance for suppliers
- Audits and quarterly meetings with key suppliers, as part of supplier management
Rating Suppliers on ESG-metrics
Vaisala applies a Supplier ESG Self-assessment Questionnaire (SAQ) as part of supplier monitoring. The SAQ rates the supplier by asking a series of questions relating to the governance of the supplier and its adherence to standards and labor and environmental laws. The scoring categories are between the supplier exceeding expectations to being far below expectations. The SAQ forms a part of the supplier risk assessment and raises red flags for breaches in labor and human rights, and environmental issues. If a supplier scores in the lowest category, a corrective action plan must be put in place at once. The SAQ-scoring is discussed bi-annually or when needed with each direct supplier. New suppliers are scored at the time of contract negotiations.
At the end of 2015, Vaisala had 580 direct suppliers. Our target is that at least 80% of total euros spent on direct suppliers would be covered by SAQ-responses, the target for 2015 was met at 86%. There were 8 new suppliers in 2015, two of them had an SAQ-score before the end of the reporting period.
Supplier Code of Conduct
The Supplier Code of Conduct reflects Vaisala's values and the Vaisala Code of Conduct, and is based on principles created by the International Labor Organization (ILO), the United Nations Global Compact initiative, and the Electronic Industry Citizenship Coalition (EICC). The Code of Conduct contains language from standards and policies formulated by the above-mentioned organizations, as well as those of the Business Social Compliance Initiative (BSCI) and Social Accountability International (SAI).
A PDF of the Code can be downloaded from the column on the right.
Compliance to Human Rights and Labor Laws
Vaisala does not condone infringement of human rights or breaches of labor laws in any part of its supply chain and takes appropriate measures to ensure that the risks of any violations of the company's Code of Conduct or its Supplier Code of Conduct are minimized in the adjacent supply chain.
Geographical Distribution of Vaisala's Direct Suppliers
Due to the enforcement of Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Securities and Exchange Commission (SEC) now requires many of Vaisala’s key customers to report on Conflict Minerals to the SEC. As a supplier, we are therefore required to declare any conflict minerals in our products and be able to show their origin.
Suppliers to Vaisala must ensure that proper precautions are taken in order not to source any materials that have their origin in conflict areas, including but not limited to the tin, tungsten, tantalum, and gold mined in the Democratic Republic of Congo (DRC) or in adjoining countries.
Reporting on Conflict Minerals
Vaisala is using the OECD Guidance and the CFSI reporting template to document its compliance efforts with its customers. In turn, Vaisala requires that its suppliers (1) commit to being or becoming "conflict-free", which means that such supplier does not source conflict minerals and sourcing only from assured conflict-free smelters, and (2) provide to Vaisala completed declarations, using the CFSI reporting template, evidencing such commitment and documenting the countries of origin from which the supplier directly or indirectly sources tin, tantalum, tungsten and gold, as well as the compliance structure that the supplier has implemented.
To contact Vaisala about conflict minerals reporting please send e-mail to