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The foundation of our Responsible Sourcing program is our Supplier Code of Conduct, to which all suppliers must comply. It covers six main areas: employee conditions, occupational health and safety (OHS), supplier compliance, Environmental Management System (EMS), elimination of discrimination, and anti-corruption. The Code forms a core part of our supplier contracts and its requirements are available in 16 languages. Specific Supplier Environmental and OHS requirements are included in the Code.

Assessing risk

Suppliers must complete mandatory Supplier Self-Assessments before they are selected. We also audit certain suppliers. We use a risk-based approach for Code of Conduct audits to identify relevant suppliers to audit. Prioritized risk areas include working at heights, road and vehicle safety, anti-corruption, labor rights (including working hours), environmental management, and communication of requirements further down the supply chain. We have set a target to address all suppliers in the top 80% of supplier spend.

Third-party auditors

In late 2016, we strengthened our approach by introducing third-party audits for the supplier Code of Conduct. We foresee that moving from internal auditors to third-party audits will make supplier audits and assessments more effective and robust. Third-party auditors are expected to bring additional, and more tailored expertise, obtained through their extensive audit activities in various industries.

Continued focus on anti-corruption

In 2016 we piloted an automated anti-corruption screening tool for suppliers and other third parties to help ensure that suppliers meet our business integrity standards. Global rollout of the program is scheduled during 2017.